TechFlow news: Asset management firm Franklin Templeton is seeking to launch a new exchange-traded fund (ETF) designed to offer investors a one-stop cryptocurrency portfolio. The proposed Franklin Cryptocurrency Index ETF would track the performance of the CF Institutional Digital Assets Index, which currently includes only Bitcoin and Ethereum.
The ETF plans to invest in digital assets with weightings similar to those of the underlying index and may include other types of cryptocurrencies in the future.
Katalin Tischhauser, Head of Investment Research at Sygnum Bank, said that index-based ETFs represent the next logical step in cryptocurrency investing, similar to how investors buy S&P 500 ETFs. Currently, due to regulatory constraints, cryptocurrency index ETFs are limited to Bitcoin and Ethereum. The ETF cannot trade on an exchange until the SEC approves its registration and permits at least one public stock exchange to list the product.
