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Franklin Templeton has filed for regulatory approval from the US Security Exchange Commission (SEC) to launch a new crypto index exchange-traded fund (ETF).
According to the filing, Franklin Templeton's crypto index fund is currently limited to holding only Bitcoin and Ethereum.
However, the firm acknowledged the possibility of expanding its ETF’s asset pool if additional cryptocurrencies receive SEC approval, allowing the asset manager to adapt to regulatory developments and broaden its offerings.
"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," Franklin Templeton said.
As of the date of filing, the index was weighted with 86.31% BTC and 13.69%. According to the filing, the weighting will be "rebalanced and reconstituted" quarterly in March, June and December.
Franklin Templeton's Bitcoin ETF, EZBC, is the eleventh largest by market cap, with $393.58 million in assets under management.
The filing coincides with Chicago’s Cboe Exchange submitting four separate applications to the SEC for XRP ETFs from WisdomTree, Bitwise, 21Shares, and Canary.
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The wave crypto-based ETFs has gained significant momentum following Donald Trump's re-election. Just days after his inauguration, Trump signed an order in the Oval Office that aims to advance cryptocurrency in the US while exploring the development of a digital asset stockpile.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the executive order reads.
The executive order addresses the establishment of technology and regulatory frameworks for cryptocurrency development in the US, and the creation of a working group to assess the feasibility of a national digital asset stockpile.
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