Franklin Templeton’s Franklin Crypto Index ETF is progressing toward potential approval by the U.S. Securities and Exchange Commission (SEC), bringing institutional investors closer to a regulated option for exposure to bitcoin and ether. The investment firm filed Amendment No. 2 to its Form S-1 Registration Statement on February 6, further detailing the fund’s structure and regulatory developments. The ETF is designed to track the CF Institutional Digital Asset Index, US Settlement Price, holding only bitcoin and ether initially.
Custody of digital assets will be managed by Coinbase Custody Trust Company LLC, while the Bank of New York Mellon will serve as the cash custodian, administrator, and transfer agent. The filing clarifies that no additional digital assets are included in the fund at this stage, and any future changes to the Underlying Index remain uncertain. Franklin Templeton initially submitted the Form S-1 for the ETF on August 16, 2024.
The Franklin Crypto Trust, a Delaware statutory trust sponsored by Franklin Holdings LLC an affiliate of Franklin Templeton will issue the ETF shares under the ticker symbol “EZPZ” on the Cboe BZX Exchange. The regulatory approval process has been ongoing since September 19, 2024, when the Cboe BZX Exchange filed a proposed rule change with the SEC. The proposal was subsequently published for public comment in the Federal Register on October 8, with the SEC extending its review period on November 20 to allow for further consideration.
The filing process has involved multiple amendments, with the exchange submitting an update on December 17, followed by the SEC requesting additional public comments on December 18. The ETF will issue shares in “Creation Units” of 50,000 shares, with transactions occurring in cash. Unlike some crypto investment products, the fund will not engage in staking or other yield-generating activities with its holdings. Franklin Resources Inc., the parent company of Franklin Templeton, has already provided an initial seed investment of $100,000, purchasing 4,000 shares at $25 each.
This investment has since been converted into bitcoin and ether in preparation for the ETF’s launch. The Franklin Crypto Index ETF aims to provide a regulated and cost-effective means for investors to access the digital asset market while closely following the performance of the Underlying Index. Despite the progress, the ETF remains subject to SEC approval. The latest filing underscores that the offering cannot proceed until the registration statement is declared effective by regulators. – By CryptoWire News Desk.
