Franklin Templeton submitted a Bitcoin and Ethereum index ETF (exchange-traded fund) proposal to the US Securities and Exchange Commission (SEC).

If the securities regulator approves the application, it could see the global asset management giant combine and offer Bitcoin (BTC) and Ethereum (ETH) in a single fund.

Franklin Templeton Files for Bitcoin and Ethereum Index ETF

Franklin Templeton’s pending Bitcoin and Ethereum index ETF filing awaits SEC approval. According to the filing, it stands out as the first ETF to hold both BTC and Ether, positioning it as a distinctive asset in the digital currency ETF market.

If approved, Franklin Crypto Index ETF shares will be issued in blocks of 50,000, with the value tied to the net asset value (NAV) of the Bitcoin and Ether held by the fund. Importantly, the fund will not directly engage in staking or income-generating activities with its digital assets.

The index aims to offer indirect exposure to Bitcoin and Ethereum, mitigating the typical volatility associated with these cryptocurrencies. Instead, BTC and ETH will be held through a proxy, with the trust’s assets composed of Bitcoin, Ethereum, cash, and short-term financial instruments.

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

Notably, the index will have a maturity of less than three months, reflecting its performance based on a benchmark designed to track the largest digital assets — the CF Institutional Digital Asset Index — aligned with current capital markets.

BNY Mellon, the American investment banking firm, will act as the fund’s custodian and transfer agent, overseeing its operations. Coinbase Custody will manage the digital assets.

However, the SEC’s decision to approve or deny the application will depend on anti-fraud measures related to regulated futures markets. The agency typically approves crypto ETFs after ensuring robust protections against fraud and manipulation.

In response, the proposal highlights existing oversight agreements with regulated futures markets to guarantee the safe and transparent trading of the underlying assets.

Unlocking New Asset Management Capabilities

The prospective Bitcoin and Ethereum Index marks Franklin Templeton’s second major move into blockchain technology in just two days. As reported by BeInCrypto, the asset management giant recently launched the Franklin Onchain U.S. Government Money Fund (FOBXX) on the Layer-1 blockchain Aptos.

This tokenization initiative allows institutional investors to access the asset directly through their digital wallets, using Franklin Templeton’s blockchain-integrated Benji Investments platform and its BENJI token. The fund is also active on Stellar, Polygon, Arbitrum, and Avalanche blockchains.

In addition, Franklin Templeton remains heavily involved in the ETF market, offering institutional investors access to Bitcoin and Ethereum through its EZBC and EZET ETFs. The firm is also planning a mutual fund on Solana.

Read more: What is Tokenization on Blockchain?

These developments highlight growing interest in decentralized finance (DeFi) among traditional finance (TradFi) players. However, uncertainties around regulatory frameworks could hinder wider adoption of TradFi-to-DeFi integration.

Ethereum’s (ETH) price is eyeing a significant rebound after losing nearly 9% of its value in the last seven days. As the altcoin builds momentum for the potential surge, shorts, who expect ETH’s price to keep decreasing, might face increased pressure.

In this analysis, BeInCrypto looks at the factors that could drive Ethereum’s value higher. It also highlights the possible impact on traders looking to profit from the cryptocurrency’s price movement.

Ethereum Targets Comeback, Shorts Under Pressure

In anticipation of “Uptober,” a term used to describe a bullish October, several analysts predicted that ETH could reach $3,000. But after a sorry start to the month, Ethereum’s price fell from $2,600 to $2,360, driving large-scale liquidation in long positions.

However, recent data shows that the table might be able to turn, and shorts might be at risk. One key metric forecasting this is Ethereum’s Coin Holding Time. This metric measures how long a coin has been held without being transacted or sold.

A decrease in holding time suggests that more holders are selling their assets, which typically signals bearish sentiment. Such activity often precedes downward price pressure, indicating that confidence in holding the coin may be waning.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

However, in this case, the Coins Holding Time has surged by 58% during the same period as Ethereum’s recent price decline. This increase is a bullish indicator for ETH, as it suggests that long-term holders are accumulating or maintaining their positions despite the price drop. 

Such behavior could be crucial in helping the cryptocurrency recover and potentially erase some of its recent losses. If this continues, ETH’s price could jump toward $2,600. According to Coinglass, an increase to $2,644 could drive over $700 million in short liquidations 

If validated, this development could also lead to a short squeeze. For those unfamiliar, a short squeeze happens when a cryptocurrency’s price moves significantly higher, prompting traders who bet on a decrease to close their positions.

ETH Price Prediction: Bull Market Could Return

Despite ETH’s decline, bulls appear to be defending the price as the swing lows still formed an ascending line. As long as this stays the same, then it might not take a long period for ETH to rebound and resume its uptrend. 

However, it is important to note that significant buying pressure is needed to bring this prediction to life. From the daily chart below, Ethereum’s price might climb to $2,450 if the uptrend line remains intact.

Should buying pressure intensify, the altcoin’s value could also climb to $2,690. In that scenario, Ethereum would no longer bid goodbye to the bull market, which could help drive the price toward $3,202.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

On the other hand, a breakdown below the section trendline might invalidate this forecast. In that scenario, ETH’s price might drop below $2,300 to $2,295.