Franklin Templeton has officially filed for a multi-asset cryptocurrency exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). This move comes amidst a growing wave of crypto-related ETF proposals following the inauguration of President Trump.
The company’s strategic decision highlights the increasing demand for diverse crypto investment options, especially in light of regulatory shifts in the financial landscape.
If sanctioned, the Franklin Crypto Index ETF will monitor the spot prices of Bitcoin (BTC) and Ethereum (ETH), providing investors access to these leading digital assets through a single fund.
The ETF Will be Listed On Cboe BZX Exchange
According to the filing on February 6, 2025, the ETF will be listed on the Cboe BZX Exchange and will be proportioned by market capitalization. At the time of the filing, Bitcoin constituted 86.31% of the index, while Ethereum represented 13.69%.
This ETF is planned to be rebalanced quarterly in March, June, September, and December to adapt to market changes.
The application follows a similar submission by Bitwise for a Bitcoin and Ethereum ETF on January 31, 2025. Franklin Templeton has indicated that the fund may consider including additional digital assets in the future, contingent on obtaining regulatory approval from both the SEC and Cboe BZX Exchange.
However, the company remarked that there is “no assurance” that any more cryptocurrencies aside from Bitcoin and Ethereum will be added.
The document outlines various potential risks related to the fund, such as heightened competition from emerging cryptocurrencies like Solana (SOL), Avalanche (AVAX), and Cardano (ADA).
Spot ETF 🇺🇸 🗓️ February 6 🇺🇸 | February 7 🇻🇳
Source: FARSIDE UK #BTC *FINAL
🟢 Grayscale “Mini” (BTC) +5.2
🔴 Fidelity (FBTC) -103.2
🔴 Grayscale (GBTC) -42.2
⚪️ VanEck (HODL) 0.0
⚪️ Bitwise (BITB) 0.0
⚪️ ARK (ARKB) 0.0
⚪️ WisdomTree (BTCW) 0.0
⚪️ Invesco (BTCO) 0.0
The increase in popularity of these alternative blockchain platforms could affect the demand for Bitcoin and Ethereum-focused ETFs. Despite anticipations regarding Solana ETFs, ETF analyst James Seyffart recently indicated that the launch of such funds may not occur until 2026, factoring in the SEC’s historical lengthy review times of 240–260 days.
Franklin Templeton’s application aligns with other submissions for spot XRP ETFs, including those from Canary Capital, WisdomTree, 21Shares, and Bitwise, which also coincide with significant leadership transitions at the SEC, notably the resignation of former Chair Gary Gensler on January 20.
The new acting SEC Chair, Mark Uyeda, is perceived as more crypto-friendly, having recently appointed a policy director from the crypto advocacy organization Coin Center to the SEC’s Crypto Task Force.
Crypto ETF Filings Surge Following Gensler’s Departure
The application by Franklin Templeton arises during a crucial moment for the SEC and cryptocurrency ETFs, triggered by Gary Gensler’s resignation on January 20.
Gensler, known for his cautious crypto regulation approach, resigned under increasing pressure for clearer regulatory guidelines in the digital asset sector. His exit has prompted a surge of new crypto ETF applications, including those from Osprey Funds and REX Shares, which applied for meme coin ETFs covering Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK) on January 21.
