The global asset manager, which has already launched a few crypto ETFs, has filed to the US SEC for a new crypto index ETF consisting of both Bitcoin and Ethereum.
Franklin Templeton, one of the largest asset management firms, has filed for a new crypto index ETF in the US. Meanwhile, the firm already has a few crypto ETFs under its belt. Its Bitcoin ETF started trading early this year, while its Ethereum ETF has also been live since a month ago. However, with the latest move, Franklin Templeton has induced a race for what could be a new gateway to crypto adoption.
The official filing to the US SEC reveals further details of the application. It states, “The Fund will seek to achieve its investment objective by investing in the Digital Assets in approximately the same weights as they represent in the Underlying Index.” Moreover, the index would include BTC and ETH, apart from other crypto tokens.
This crypto index would also be similar to the regular method of index investing in traditional assets. Index investing is very popular worldwide and has gained prominence among both retail and institutional investors.
For instance, the S&P 500 in the US is one of the leading indices for investments. In the case of crypto, one has only seen singular BTC or ETH spot ETFs. If this crypto index application sees the green signal, index investing could gain quick popularity in the crypto space.
At the same time, it could also be a sign of the crypto sector maturing in recent times. ETFs, indices, and other regulated approaches to investing are already popular in equity, debt, and other asset classes. With crypto entering the fray, it could see new heights of acceptance. Moreover, with crypto adoption as a bonus, the step is in the right direction.
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