Franklin Templeton, a leading asset manager, has filed for a multi-asset crypto exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The Franklin Crypto Index ETF is designed to track the spot prices of Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization.
The filing, submitted on February 6, states that the ETF would be listed on the Cboe BZX Exchange and rebalanced quarterly. This move follows Bitwise Asset Management’s January 31 application for a similar ETF, highlighting the increasing demand for regulated crypto investment products.
Bitcoin and Ethereum Dominate the Portfolio
According to the filing, the Franklin Crypto Index ETF would allocate assets based on market capitalization. At the time of submission, Bitcoin accounted for 86.31% of the portfolio, while Ethereum made up 13.69%.
The fund will be rebalanced every March, June, September, and December to reflect changes in market capitalization. Additionally, Franklin Templeton indicated that it might expand the ETF’s holdings to include other cryptocurrencies pending regulatory approval. However, the firm cautioned that there is no guarantee of additional assets being included in the near future.
Regulatory Landscape and Competition
The ETF filing comes amid regulatory shifts following the resignation of former SEC Chair Gary Gensler on January 20. Under the new Acting SEC Chair Mark Uyeda, there is speculation about a more crypto-friendly approach. Uyeda has appointed a policy director from the crypto advocacy group Coin Center to the SEC’s Crypto Task Force, signaling potential regulatory changes.
However, challenges remain. The SEC has been slow in approving alternative crypto ETFs, with analysts predicting that Solana ETFs may not gain approval until 2026. Franklin Templeton’s filing also acknowledges competition from emerging crypto assets such as Solana (SOL), Avalanche (AVAX), and Cardano (ADA), which could impact investor interest.
Rising Interest in Crypto ETFs
On the same day as Franklin Templeton’s filing, the Cboe BZX Exchange submitted 19b-4 applications for spot XRP ETFs from Canary Capital, WisdomTree, 21Shares, and Bitwise. This highlights the growing momentum in the U.S. crypto ETF space, with multiple firms vying for approval.
The market’s response to these developments will depend on the SEC’s stance under new leadership. If approved, the Franklin Crypto Index ETF would provide traditional investors with an accessible and regulated way to gain exposure to Bitcoin and Ethereum, reinforcing the mainstream adoption of digital assets.
