 Franklin Templeton seeks SEC approval for Crypto Index ETF 
2025-02-07
Category: None

Asset manager Franklin Templeton has filed for a multi-asset crypto exchange-traded fund (ETF) with the United States securities regulator, adding to the growing list of crypto ETF applications since the inauguration of US President US Donald Trump.
If approved, the Franklin Crypto Index ETF would offer exposure to the spot prices of Bitcoin BTCUSD and Ether ETHUSD in a single fund on the Cboe BZX Exchange, weighted by their respective market capitalizations, according to a Feb. 6 filing with the US Securities and Exchange Commission (SEC). 
Crypto Index ETF is rebalanced quarterly
As of the filing date, this was 86.31% BTC and 13.69% ETH. The index will be “rebalanced and reconstituted” quarterly in March, June, September and December.
It comes just weeks after Bitwise filed for a similar product on Jan. 31, the “Bitwise Bitcoin and Ethereum ETF.”
Franklin Templeton’s filing said that more crypto tokens may be considered to be added to the Crypto Index ETF in the future, but only once “the fund and Cboe BZX Exchange receive the necessary regulatory approval to permit the Fund to hold such other digital assets.”
The firm said there’s “no assurance” that any crypto tokens beyond the two largest by market cap will be approved for inclusion in the fund.
The filing highlighted several potential risks for investors, including competition from the “emergence or growth” of other crypto tokens like Solana SOLUSD, Avalanche AVAXUSD and Cardano (ADA), which could negatively impact demand for the Franklin Crypto Index ETF.
While the speculation around Solana ETFs is rising, ETF analyst James Seyffart recently said it may not be until 2026 that Solana ETFs see the light of day due to the SEC’s “precedent of taking […] 240–260 days to review filings.”
Other crypto ETF filings on the same day
It came on the same day as the Cboe BZX Exchange filed on behalf of four asset managers looking to list spot XRP ETFs in the US this year. 
The exchange lodged 19b-4 filings for spot XRP funds from Canary Capital, WisdomTree, 21Shares and Bitwise.
The wave of crypto ETF applications has followed Trump’s inauguration and a number of staff changes at the SEC, including the resignation of former SEC Chair Gary Gensler on Jan. 20.
The current acting SEC chair, Mark Uyeda, is seen as crypto-friendly. He recently brought on the policy director from the crypto advocacy group Coin Center to join the SEC’s Crypto Task Force.