Franklin Templeton Seeks Approval for Multi-Asset Crypto ETF in Latest SEC Filing

Franklin Templeton, a prominent asset manager, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a new multi-asset cryptocurrency exchange-traded fund (ETF). If approved, the Franklin Crypto Index ETF will provide exposure to the spot prices of Bitcoin and Ether in a single investment vehicle on the Cboe BZX Exchange.

Balanced Exposure to Bitcoin and Ether Prices

According to the February 6 filing, the ETF will allocate holdings based on the market capitalization of the two largest cryptocurrencies. As of the filing date, Bitcoin accounted for 86.31% of the weighting, while Ether made up 13.69%. The fund will be rebalanced quarterly in March, June, September, and December to maintain these proportions.

The filing also hinted at potential future expansions, noting that additional digital assets could be considered for inclusion if both the ETF and the Cboe BZX Exchange obtain the necessary regulatory approvals. However, Franklin Templeton acknowledged uncertainties, stating there is “no assurance” that any cryptocurrencies beyond Bitcoin and Ether will be approved.

Growing Competition in Crypto ETFs

Franklin Templeton’s application joins a surge of similar filings in the wake of President Donald Trump’s inauguration, which ushered in changes at the SEC, including the resignation of former Chair Gary Gensler. The current acting SEC Chair, Mark Uyeda is more favorable toward cryptocurrency initiatives. Uyeda recently appointed a policy director from Coin Center, a crypto advocacy group, to the SEC’s Crypto Task Force.

Just days before Franklin Templeton’s filing, Bitwise sought approval for a comparable product, the “Bitwise Bitcoin and Ethereum ETF.” Meanwhile, the Cboe BZX Exchange filed applications on behalf of four asset managers, including WisdomTree and 21Shares, to launch spot XRP ETFs.

Despite rising investor interest, Franklin Templeton’s filing cautioned about risks, including competition from emerging tokens such as Solana (SOL), Avalanche (AVAX), and Cardano (ADA). ETF analyst James Seyffart noted that regulatory hurdles could delay the approval of ETFs tied to newer assets like Solana until at least 2026.

As regulatory clarity continues to evolve, Franklin Templeton’s move reflects a growing demand for diverse and accessible crypto investment products.