Asset Mananger Franklin Templeton Files S-1 for Bitcoin-Ethereum ETF

Investment firm Franklin Templeton has submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC) proposing a new exchange-traded fund (ETF) designed to hold Bitcoin and Ethereum. The Franklin Crypto Index ETF would trade under the ticker EZPZ.

Initially, the ETF would allocate funds to Bitcoin and Ethereum, with each asset weighted by its market capitalization. Coinbase is expected to serve as the crypto custodian for the fund. According to the S-1 filing, more digital assets might be included in the ETF in the future, subject to regulatory approval.

Growing Interest in Crypto ETFs

Franklin Templeton’s filing follows a similar S-1 submission by Hashdex on July 24, just two days after spot Ethereum ETFs were cleared for trading. The SEC recently postponed its decision on Hashdex’s filing, extending its review period until September 30, 2024.

Grayscale, a crypto fund issuer managing $20 billion in assets, has also signaled interest in launching crypto index ETFs. Dave LaValle, Grayscale’s global head of ETFs, stated on August 12 that the market could soon see more single-asset products as well as index-based and diversified crypto products.

Before the ETF can be listed on exchanges, the SEC must approve its registration application (S-1) and a public equities exchange, such as Nasdaq, must agree to list the product. LaValle expressed surprise at the rapid progress in integrating digital assets into client portfolios and noted that he didn’t expect the SEC to approve Ethereum ETFs so quickly.

Pending Crypto ETF Approvals

Other proposed crypto ETFs, such as single-asset funds like Solana ETFs and diversified crypto indexes like the Hashdex Nasdaq Crypto Index ETF, are still waiting for regulatory approval.

Cboe BZX, the exchange where Franklin Templeton’s EZPZ would trade, has also filed for regulatory approval for the 21Shares Core Solana ETF and the VanEck Solana Trust.

Similarly, on July 23, Franklin Templeton expressed optimism about a Solana ETF in a post on X, highlighting the significant adoption and maturation of Solana, which has overcome technological challenges. The firm noted that Solana’s high-throughput, monolithic architecture demonstrates its capacity to contribute to the development of the crypto space.