Franklin Templeton has submitted a filing to the U.S. Securities and Exchange Commission (SEC) seeking approval for a new crypto exchange-traded fund (ETF) called the Franklin Crypto Index ETF. This proposed fund is designed to provide investors with exposure to the spot prices of two major cryptocurrencies—Bitcoin and Ether—on the Cboe BZX Exchange. The ETF will be weighted according to the market capitalizations of these cryptocurrencies, with the initial allocation set at 86.31% Bitcoin and 13.69% Ether. The composition of the index will be reviewed and updated quarterly in March, June, September, and December.
This filing comes on the heels of a similar application by Bitwise for a Bitcoin and Ethereum ETF, reflecting a broader trend of increasing interest in crypto ETFs since changes in the SEC leadership after the inauguration of President Donald Trump. Despite Franklin Templeton’s ambitions to expand the fund’s holdings to include other crypto assets in the future, the firm has warned that regulatory approval for such additions is not guaranteed.
The application also points out several risks, including potential competition from the rise of other cryptocurrencies such as Solana, Avalanche, and Cardano, which could affect the demand for the Franklin Crypto Index ETF. Meanwhile, Solana ETFs face a longer approval timeline, with analysts suggesting they may not be launched until 2026 owing to the SEC’s customary review period.
Coincidentally, the Cboe BZX Exchange has also recently filed on behalf of several asset managers, seeking to introduce spot XRP ETFs in the United States. This development is part of a wave of filings that started after the change in SEC chairmanship, with acting chair Mark Uyeda perceived as more favorable towards the crypto sector.
