The Franklin Crypto Index ETF aims to offer exposure to the spot prices of Bitcoin and Ether, following a comparable filing by Bitwise just a few weeks ago.
Summary
Franklin Templeton is obtaining SEC approval for a Crypto Index ETF, offering exposure to Bitcoin and Ether spot prices. The ETF, which rebalances quarterly, currently has a Bitcoin proportion split of 86.31%. Additional crypto tokens may be considered for inclusion in the future, but only after regulatory sanction is received. The surge in crypto ETF applications coincides with the inauguration of Donald Trump and staff changes at the SEC.
The United States securities regulator has received a multi-asset crypto exchange-traded fund (ETF) application from asset manager Franklin Templeton, which is the latest addition to the expanding list of crypto ETF applications since the inauguration of US President Donald Trump.
According to a filing with the US Securities and Exchange Commission (SEC) on February 6, the Franklin Crypto Index ETF would provide exposure to the spot prices of Bitcoin in a single fund on the Cboe BZX Exchange, weighted by their respective market capitalizations, if approved.
Crypto Index ETF rebalances quarterly
This was 86.31% BTC and 13.69% ETH as of the reporting date. Quarterly, in March, June, September, and December, the index will be “reset and rebuilt.”
The “Bitwise Bitcoin and Ethereum ETF” is a product that Bitwise filed for on January 31, just weeks prior.
Franklin Templeton’s filing indicated that additional crypto tokens may be considered for inclusion in the Crypto Index ETF in the future. However, this will only occur after “the fund and Cboe BZX Exchange receive the requisite regulatory sanction to permit the Fund to hold such other digital assets.”
The company stated that there is “no guarantee” that any crypto tokens beyond the two largest by market valuation will be approved for inclusion in the fund.
The filing emphasized a number of potential risks for investors, such as the potential negative impact on demand for the Franklin Crypto Index ETF due to competition from the “emergence or growth” of other crypto tokens such as Solana.
James Seyffart, an ETF analyst, recently stated that the SEC’s “precedent of taking […] 240–260 days to evaluate filings” may delay the release of Solana ETFs until 2026, despite the increasing speculation surrounding them.
Additionally, there were other crypto ETF filings that occurred on the same day.
On the same day, the Cboe BZX Exchange filed on behalf of four asset managers who are interested in listing spot XRP ETFs in the United States this year.
The exchange submitted 19b-4 filings for spot XRP funds from Canary Capital, WisdomTree, 21Shares, and Bitwise.
The surge in crypto ETF applications has coincided with the inauguration of Donald Trump and a series of staff changes at the Securities and Exchange Commission (SEC), including the resignation of former SEC Chair Gary Gensler on January 20.
It is believed that Mark Uyeda, the current interim chief of the Securities and Exchange Commission, is inclined toward cryptocurrency. He has recently recruited the policy director from the crypto advocacy group Coin Center to join the SEC’s Crypto Task Force.
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