- Franklin Templeton proposed a Bitcoin and Ethereum index ETF, combining both assets in one fund.
- Hashdex plans to launch a groundbreaking ETF directly holding spot Bitcoin and Ethereum.
In a noteworthy development, Franklin Templeton Investments, a prominent trillion-dollar asset manager, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to establish a Bitcoin [BTC] and Ethereum [ETH] index exchange-traded fund (ETF).
If approved, this initiative would enable the global investment firm to merge BTC and ETH into a single fund, providing investors with a streamlined way to gain exposure to both digital assets.
The proposed ETF would include Bitcoin, Ethereum, and cash equivalents—short-term securities maturing in less than three months—allowing investors to engage with these cryptocurrencies without directly owning them.

Source: sec.gov
Strangely, this proposal emerged during a period when the entire BTC ETFs recorded outflows worth $52.9 million, while ETH ETFs saw inflows of $19.8 million as per Farside Investors.
How will it impact the crypto market?
That being said, Franklin Templeton’s proposed Bitcoin and Ethereum Crypto Index ETF would mark the first-ever fund to combine both BTC and ETH in a single index product.
According to the filing, the ETF is designed to streamline the investment process for both institutional and retail investors, providing them with simplified access to the two largest cryptocurrencies by market capitalization.
Remarking on the same, an X user said,

Source: Puppeteer/X
As expected, this step would also alleviate the complexities and volatility often associated with cryptocurrency exchanges.
What’s more to it?
The fund will be available in blocks of 50,000 shares, priced based on the net asset value (NAV) of the underlying Bitcoin and Ethereum.
Notably, the ETF will not engage in staking or other income-generating activities with its digital assets, maintaining a straightforward approach to crypto investment.
Providing further insights, the filing noted,
“CSC Delaware Trust Company, a subsidiary of the Corporation Service Company, is the trustee (“Trustee”). Bank of New York Mellon is the custodian for the Fund’s cash and cash equivalents16 (the “Cash Custodian”) and also serves as the Fund’s administrator and transfer agent (the “Administrator” or “Transfer Agent”).
It further added,
“Coinbase Custody Trust Company, LLC (the “Digital Custodian”) will be responsible for custody of the Fund’s bitcoin and ether. According to the Registration Statement, each Share will represent a fractional undivided beneficial interest in the Fund’s net assets.”
However, the ultimate approval of the fund, hinges on the SEC’s evaluation, particularly concerning anti-fraud measures.
For context, the SEC typically approves crypto ETFs only after confirming that robust safeguards are in place to prevent fraud and market manipulation in regulated futures markets.
Hashdex’s Crypto Index ETF proposal
Well, Franklin Templeton is not alone as back in July, Hashdex, a prominent crypto asset management firm, also made notable strides toward launching a pioneering ETF that will directly hold both spot BTC and ETH.
The firm also submitted its S-1 registration statement to the U.S. SEC, positioning the Hashdex Nasdaq Crypto Index US ETF to be a potential game-changer in the U.S. market.
- Franklin Templeton proposed a Bitcoin and Ethereum index ETF, combining both assets in one fund.
- Hashdex plans to launch a groundbreaking ETF directly holding spot Bitcoin and Ethereum.
In a noteworthy development, Franklin Templeton Investments, a prominent trillion-dollar asset manager, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to establish a Bitcoin [BTC] and Ethereum [ETH] index exchange-traded fund (ETF).
If approved, this initiative would enable the global investment firm to merge BTC and ETH into a single fund, providing investors with a streamlined way to gain exposure to both digital assets.
The proposed ETF would include Bitcoin, Ethereum, and cash equivalents—short-term securities maturing in less than three months—allowing investors to engage with these cryptocurrencies without directly owning them.

Source: sec.gov
Strangely, this proposal emerged during a period when the entire BTC ETFs recorded outflows worth $52.9 million, while ETH ETFs saw inflows of $19.8 million as per Farside Investors.
How will it impact the crypto market?
That being said, Franklin Templeton’s proposed Bitcoin and Ethereum Crypto Index ETF would mark the first-ever fund to combine both BTC and ETH in a single index product.
According to the filing, the ETF is designed to streamline the investment process for both institutional and retail investors, providing them with simplified access to the two largest cryptocurrencies by market capitalization.
Remarking on the same, an X user said,

Source: Puppeteer/X
As expected, this step would also alleviate the complexities and volatility often associated with cryptocurrency exchanges.
What’s more to it?
The fund will be available in blocks of 50,000 shares, priced based on the net asset value (NAV) of the underlying Bitcoin and Ethereum.
Notably, the ETF will not engage in staking or other income-generating activities with its digital assets, maintaining a straightforward approach to crypto investment.
Providing further insights, the filing noted,
“CSC Delaware Trust Company, a subsidiary of the Corporation Service Company, is the trustee (“Trustee”). Bank of New York Mellon is the custodian for the Fund’s cash and cash equivalents16 (the “Cash Custodian”) and also serves as the Fund’s administrator and transfer agent (the “Administrator” or “Transfer Agent”).
It further added,
“Coinbase Custody Trust Company, LLC (the “Digital Custodian”) will be responsible for custody of the Fund’s bitcoin and ether. According to the Registration Statement, each Share will represent a fractional undivided beneficial interest in the Fund’s net assets.”
However, the ultimate approval of the fund, hinges on the SEC’s evaluation, particularly concerning anti-fraud measures.
For context, the SEC typically approves crypto ETFs only after confirming that robust safeguards are in place to prevent fraud and market manipulation in regulated futures markets.
Hashdex’s Crypto Index ETF proposal
Well, Franklin Templeton is not alone as back in July, Hashdex, a prominent crypto asset management firm, also made notable strides toward launching a pioneering ETF that will directly hold both spot BTC and ETH.
The firm also submitted its S-1 registration statement to the U.S. SEC, positioning the Hashdex Nasdaq Crypto Index US ETF to be a potential game-changer in the U.S. market.
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