Franklin Templeton files for SEC approval of a Crypto Index ETF.

The move follows a similar filing by Bitwise just weeks earlier, adding to the growing wave of crypto ETF applications since U.S. President Donald Trump took office.

If approved, the Franklin Crypto Index ETF would be listed on the Cboe BZX Exchange and track Bitcoin (BTC) and Ether (ETH) based on their respective market capitalizations. As of the filing date on Feb. 6, the fund’s allocation was 86.31% BTC and 13.69% ETH. 

The ETF will be “rebalanced and reconstituted” quarterly in March, June, September, and December to ensure that it accurately reflects the evolving market capitalization of these assets.

Franklin Templeton also indicated that additional cryptocurrencies could be included in the ETF over time, but only if the fund and the Cboe BZX Exchange receive the necessary regulatory approvals. However, the firm cautioned that there is “no assurance” that any crypto assets beyond Bitcoin and Ethereum will be approved for inclusion. 

This means that while the ETF could potentially expand to include more digital assets, regulatory hurdles remain a key factor in determining its future composition.

The filing also highlights several risks associated with the ETF, including competition from the growing adoption of other cryptocurrencies such as Solana (SOL), Avalanche (AVAX), and Cardano (ADA). These alternative digital assets have gained significant traction in the market, and their increasing adoption could impact investor demand for the Franklin Crypto Index ETF. 

While there has been growing speculation around the possibility of Solana ETFs, ETF analyst James Seyffart recently suggested that it may take until 2026 for such funds to be approved, citing the SEC’s precedent of taking 240–260 days to review filings.

Franklin Templeton’s filing comes on the same day that the Cboe BZX Exchange submitted applications on behalf of multiple asset managers seeking approval for spot XRP ETFs in the United States. 

The exchange lodged 19b-4 filings for spot XRP funds from Canary Capital, WisdomTree, 21Shares, and Bitwise, further underscoring the increasing interest in crypto-based investment products.

The surge in crypto ETF applications follows significant regulatory shifts at the SEC, particularly the resignation of former SEC Chair Gary Gensler on Jan. 20. 

Since his departure, the regulatory landscape has evolved, with the new acting SEC Chair, Mark Uyeda, being viewed as more crypto-friendly. Uyeda has already made moves to bolster the SEC’s Crypto Task Force by bringing on a policy director from Coin Center, a well-known crypto advocacy group. These changes signal a potential shift in the SEC’s approach toward cryptocurrency regulation, which could have implications for the approval of future crypto ETFs.