Multinational asset manager Franklin Templeton has filed an amended S-1 application with the SEC for its Franklin Crypto Index ETF, proposing a flexible framework to include additional tokens beyond Bitcoin and Ethereum.
Key Details of the Filing
- Initial Holdings: 86.31% Bitcoin (BTC) and 13.69% Ethereum (ETH).
- Future Additions: Tokens may be added if they comply with U.S. regulations and secure SEC approval for related exchange-traded products.
- Listing Venue: Cboe BZX Exchange.
The filing emphasizes regulatory compliance, stating:
"The Underlying Index only includes digital assets that conform to capital markets regulations of major financial jurisdictions, including the United States."
Broader Market Implications
Coinpass CEO Jeff Hancock highlights the significance:
- Multi-asset ETFs reduce single-token volatility risks.
- Institutional liquidity and diversified exposure benefit mainstream adoption.
Regulatory Context
- Fast-Track Approvals: SEC accelerated reviews for similar ETFs (e.g., Bitwise’s Bitcoin-Ethereum ETF).
- Political Influence: Pro-crypto SEC chair Paul Atkins (appointed by the Trump administration) may streamline future approvals.
Recent ETF Trends
- Altcoin ETF Filings: Dogecoin (Bitwise/Grayscale) and XRP (4 filings in 24 hours).
- Existing Products: Franklin’s Bitcoin ETF ($743.7M AUM) and Ethereum ETF ($33.9M AUM).
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FAQs
1. What makes the Franklin Crypto Index ETF unique?
It’s the first SEC-reviewed ETF designed to dynamically add tokens based on regulatory greenlights.
2. How does the SEC’s political shift affect crypto ETFs?
Pro-crypto leadership under Paul Atkins may expedite approvals and reduce regulatory hurdles.
3. Why invest in a multi-token ETF instead of single-asset funds?
Diversification minimizes risk while capturing broader crypto market growth.