Franklin Templeton Files to Launch Cryptocurrency Index ETF Targeting Bitcoin and Ether

Asset management behemoth, Franklin Templeton Investments BEN, is seeking regulatory approval to launch a new cryptocurrency index exchange-traded fund (ETF).

Asset management behemoth Franklin Templeton Investments (NYSE:BEN) is seeking regulatory approval to launch a new cryptocurrency index exchange-traded fund (ETF).

What Happened: Franklin Templeton filed an application with the U.S. Securities and Exchange Commission (SEC) seeking approval to launch a new crypto index exchange-traded fund (ETF).

“The fund currently may not hold any digital asset other than bitcoin and ether. It is uncertain whether any digital assets other than bitcoin and ether may in the future be added to the Underlying Index,” said Franklin Templeton in a regulatory filing on Thursday.

As of the filing date, the index was composed of 86.31% Bitcoin (BTC) and 13.69% Ether (ETH). However, the weightage will be “rebalanced and reconstituted” quarterly in March, June, and December, stated the filing.

Franklin Templeton is aiming to capitalize on the growing interest in cryptocurrencies, a trend that has been spurred by President Donald Trump's victory and his promise to make the U.S. the “crypto capital of the world” and to amass a national Bitcoin reserve.

The SEC, which had earlier sought to restrict ETFs from investing in Bitcoin due to investor protection concerns, greenlit Bitcoin and Ether ETFs last year. This decision has allowed a broader range of investors, including institutional investors, to gain exposure to Bitcoin.

SEE ALSO: Ethereum Faces ‘Intense Competition’ From Solana, Struggles To Compete With Bitcoin: JPMorgan

Why It Matters: Franklin Templeton's move comes at a time when the cryptocurrency market is experiencing significant波动. Despite a downturn in overall global market cap, there is increasing institutional adoption, with states now permitting Bitcoin investments.

Further, the possibility of ETFs for other cryptocurrencies, including meme coins, is not entirely off the table. As Bitwise CIO Matthew Hougan noted, such ETFs would require a market that is deep, liquid, globally distributed, and has limited insider influence.

Also on Thursday, Chicago's Cboe Exchange filed four separate applications with the SEC for XRP (XRP) ETFs on behalf of WisdomTree, Bitwise, 21Shares, and Canary.

This suggests that Franklin Templeton's ETF if approved, could pave the way for a broader range of crypto-based ETFs in the future.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.