Franklin Templeton Files Application with SEC to Launch Crypto Index ETF

This move highlights growing institutional interest in crypto ETFs, particularly those involving assets like Bitcoin.

Franklin Templeton, a major US asset management company, has filed an application with the Securities and Exchange Commission (SEC) to launch a crypto index Exchange-Traded Fund (ETF).

This move highlights growing institutional interest in crypto ETFs, especially those tracking assets like Bitcoin.

Franklin Templeton’s Crypto Index ETF application reflects growing institutional interest in Web3

On August 16, Franklin Templeton filed to introduce the “Franklin Crypto Index ETF,” which aims to provide investors with diversified exposure to several cryptocurrencies. The index will initially focus on Bitcoin and Ethereum, with plans to potentially include additional assets in the future.

The Crypto Index Fund will be structured as a weighted offering, with allocations based on the market capitalization of the underlying assets, according to the filing. The index will use pricing data from the CME CF Bitcoin and Ethereum reference rates to calculate its value.

If approved by the SEC, the fund could draw investors away from single-asset ETFs, potentially positioning Franklin Templeton as a major player in the market.

Read More: Crypto ETN vs. Crypto ETF: What Is the Difference?

This move further highlights the growing institutional interest in the emerging sector, as noted by market observers. According to data shared by K33 Research’s Senior Analyst, Vetle Lunde, the number of professional firms that invested in crypto-related spot ETFs increased by 262 during Q2 to reach 1,199 institutional investors.

While retail investors still hold the bulk of the market, institutional investors have increased their holdings by 2.41% of their Assets Under Management (AUM). Despite some reduction in exposure, firms like Millennium and Susquehanna remain the largest holders of spot Bitcoin ETFs. New entrants like Jane Street and Paul Tudor Jones also made significant Bitcoin ETF investments during this period.

“GBTC saw a substantial reduction in their institutional capital, whereas IBIT and FBTC saw a pronounced growth in professional investor dominance,” Lunde added.

Read More: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Amid this rise in institutional participation, CoinShares’ Head of Research, James Butterfill, pointed out that investment advisors now manage the most AUM in the market.

“Looking from the top level, Investment advisors and Brokerages have the most AUM now at $4.7 billion and $1.5 billion respectively. This is followed by Hedge Funds and Holding companies with $3.8 billion and $1.1 billion respectively,” Butterfill stated.