Latest Franklin Templeton Move: New Crypto ETF on Cboe BZX
Franklin Templeton, an asset management company, has joined the growing number of crypto ETF applications since US President Donald Trump took office. Accordingly, the company has filed an application with the US Securities and Exchange Commission (SEC) for a multi-asset crypto exchange-traded fund (ETF). According to the February 6 filing, if approved, the Franklin Crypto Index ETF would provide exposure to the spot prices of Bitcoin and Ether in a single fund on the Cboe BZX Exchange, weighted by their respective market capitalizations.
The filing occurred only a few weeks after Bitwise submitted an application for the Bitwise Bitcoin and Ethereum ETF, a comparable product on January 31. This was 13.69% ETH and 86.31% BTC as of the filing date. Every quarter in March, June, September, and December, the index will be rebalanced and recreated.
Solana, Avalanche, and Cardano Pose Competition for Franklin Crypto ETF
According to Franklin Templeton’s filing, once the fund and Cboe BZX Exchange obtain the required regulatory approval to allow the fund to hold such other digital assets, more cryptocurrency tokens may be considered for future addition to the Crypto Index ETF. There is no guarantee that any cryptocurrency tokens other than the top two by market capitalization would be accepted for inclusion in the fund, the company stated.
According to the filing, investors may face several risks, such as competition from other cryptocurrency tokens, including Solana, Avalanche, and Cardano, which might have a detrimental effect on demand for the Franklin Crypto Index ETF. ETF expert James Seyffart has stated that because of the SEC‘s “precedent of taking […] 240–260 days to review filings,” it may not be until 2026 when Solana ETFs are approved, despite the fact that curiosity about them is growing.
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