Franklin Templeton Seeks SEC Nod for Multi-Asset Crypto ETF

Franklin Templeton, a prominent global investment management firm, has filed an application with the U.S. Securities and Exchange Commission (SEC) for a multi-asset crypto exchange-traded fund (ETF). The proposed Franklin Crypto Index ETF aims to provide investors with exposure to the spot prices of Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization.

The filing, dated February 6, outlines that the ETF would be listed on the Cboe BZX Exchange, with the constituent cryptocurrencies weighted according to their market caps. At the time of the filing, the index was composed of 86.31% BTC and 13.69% ETH. The Franklin Crypto Index ETF is designed to be rebalanced quarterly in March, June, September, and December.

This move comes amidst a flurry of crypto ETF applications, including Bitwise Asset Management's January 31 application for a similar ETF, the "Bitwise Bitcoin and Ethereum ETF." The increased interest in crypto ETFs has been noted since the inauguration of President Donald Trump and subsequent changes at the SEC, including the resignation of former Chair Gary Gensler on January 20.

Franklin Templeton's filing also mentioned the possibility of expanding the ETF's holdings to include additional cryptocurrencies in the future. However, this would only occur once the necessary regulatory approvals are obtained, allowing the fund and Cboe BZX Exchange to hold other digital assets. The firm emphasized that there is "no assurance" that any other crypto tokens beyond BTC and ETH would be approved for inclusion in the fund.

Investors were cautioned about potential risks, including the impact of competition from other emerging crypto tokens such as Solana, Avalanche, and Cardano, which could affect the demand for the Franklin Crypto Index ETF. Despite the growing interest in ETFs for cryptocurrencies like Solana, ETF analyst James Seyffart recently suggested that it might not be until 2026 before Solana ETFs are approved, given the SEC's history of lengthy review processes for such filings.

In parallel, the Cboe BZX Exchange filed 19b-4 applications for spot XRP ETFs from four different asset managers—Canary Capital, Wisdom