Franklin Templeton Enters Crypto ETF Race, Seeking Bitcoin and Ethereum Exposure

Franklin Templeton, a prominent global investment management firm, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a new Crypto Index ETF. This fund aims to provide exposure to two of the most prominent cryptocurrencies, Bitcoin (BTC-USD) and Ethereum (ETH-USD), with an initial weighting of 86.31% for BTC and 13.69% for ETH. The index will be rebalanced quarterly to reflect market capitalization.

The timing of Franklin Templeton's application coincides with a surge in crypto ETF filings since the beginning of the Trump administration. The recent leadership changes at the SEC, including the resignation of former Chair Gary Gensler, have created an opportunity for more pro-crypto initiatives. Acting Chair Mark Uyeda has brought in policy experts from crypto-friendly groups, signaling a shift in regulatory tone.

Franklin Templeton's move follows similar filings by other asset managers. Bitwise submitted a Bitcoin and Ethereum ETF application weeks earlier, while Cboe BZX Exchange proposed spot XRP ETFs on behalf of four asset managers. While the Franklin ETF will initially focus on Bitcoin and Ether, the firm acknowledges the potential risks and opportunities presented by other rising cryptocurrencies like Solana (SOL-USD) and Cardano (ADA-USD). Investors are eagerly awaiting the regulatory decision on these crypto ETF applications.

For investors interested in Bitcoin ETFs, thorough research is essential. A useful tool for comparing various Bitcoin ETFs side-by-side is available, allowing investors to examine key metrics such as performance history, expense ratios, and assets under management.