Cboe BZX Exchange has submitted a rule change request with the Securities and Exchange Commission (SEC) to allow it to trade shares of the Franklin Crypto Index ETF.
The notice has been published to solicit feedback from interested parties.
The document explains that the Fund’s shares:
“will represent a fractional undivided beneficial interest in the Fund’s net assets. The Fund’s assets will only consist of Bitcoin, Ether, cash, and cash equivalents. In the event that any digital asset other than Bitcoin and Ether is included, or is eligible for inclusion, as a constituent in the Index, the Sponsor will transition the Fund from full replication to a representative sampling methodology, holding only Bitcoin and Ether in the same proportions determined by the Index, until such time that the Fund and the Exchange receive the necessary regulatory approval to permit the Fund to hold such other digital asset.”
Coinbase Custody Trust Company will be the custodian for the Fund.
As the SEC has already approved spot funds based on Bitcoin and Ether – even with their voiced concerns – it would be surprising if the fund was denied.