Franklin Templeton Files for Multi-Asset Crypto ETF

Franklin Templeton's Crypto ETF Filing

Franklin Templeton, a leading asset manager, has filed a proposal with the SEC for a multi-asset crypto ETF. The Franklin Crypto Index ETF aims to track the spot prices of Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization. The ETF is set to be listed on the Cboe BZX Exchange, with weights based on market cap—currently 86.31% BTC and 13.69% ETH. The fund will rebalance quarterly.

Market Context and Competition

This filing follows Bitwise Asset Management's recent application for a similar ETF. The crypto ETF space has seen increased activity, potentially influenced by regulatory shifts under the SEC. Franklin Templeton's ETF may expand to include other cryptocurrencies in the future, pending regulatory approval.

Regulatory Landscape and Risks

The SEC has seen a wave of crypto ETF applications, with 19b-4 filings for spot XRP ETFs from multiple firms. Acting SEC Chair Mark Uyeda's openness to crypto suggests a shifting regulatory environment. However, investors are cautioned about risks, including competition from emerging tokens like Solana, Cardano, and Avalanche, which could impact demand. Analysts predict that approvals for such ETFs may take time, with Solana ETFs possibly not being approved until 2026.

Conclusion

Franklin Templeton's filing reflects the growing interest in crypto ETFs, despite regulatory challenges. This move underscores the evolving landscape of digital asset investments in the U.S. market.