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Franklin Templeton’s new ETF aims at Bitcoin and Ethereum exposure

Franklin Templeton’s new ETF aims at Bitcoin and Ethereum exposure

GrafaGrafa2024/08/19 06:45
By:Mahathir Bayena

Franklin Templeton, a leading U.S. asset management firm, has filed an application with the Securities and Exchange Commission (SEC) to launch a Crypto Index Exchange-Traded Fund (ETF).

This proposed ETF aims to provide diversified exposure to major cryptocurrencies, particularly Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH), reflecting the increasing interest among institutional investors in the crypto market.

The Franklin Crypto Index ETF will be structured as a weighted fund, with allocations based on the market capitalization of the underlying assets.

Pricing data will be sourced from the CME CF Bitcoin and Ethereum reference rates.

If approved, this ETF could attract investors away from single-asset ETFs, potentially positioning Franklin Templeton as a significant player in the cryptocurrency ETF market.

This move aligns with a broader trend of growing institutional involvement in crypto ETFs.

Data from K33 Research, presented by Senior Analyst Vetle Lunde, indicates that the number of professional firms investing in crypto-related spot ETFs rose by 262 in the second quarter of 2024, bringing the total to 1,199 institutional investors.

While retail investors still hold the majority of the market, institutional investors have gradually increased their holdings, now representing 2.41% of their Assets Under Management (AUM).

Notably, firms like Millennium and Susquehanna remain among the largest holders of spot Bitcoin ETFs, despite some reductions in exposure.

New participants, including Jane Street and Paul Tudor Jones, have also made significant investments in Bitcoin ETFs during this period.

As institutional participation continues to grow, investment advisors now manage the most AUM in the market, followed by hedge funds and holding companies.

This trend underscores the increasing role of institutional capital in shaping the future of cryptocurrency investments.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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