Franklin Templeton, a multinational asset manager, has filed an amended S-1 for its Franklin Crypto Index ETF. The filing seeks approval to gradually add tokens to this fund.
In a filing submitted Thursday, it states that, initially, an exchange-traded product will track Bitcoin, Ethereum and a combination of both, with 86.31 percent weighting to BTC, and 13.69 percent to ETH.
Clarifying that it does not commit to add any other cryptocurrency “it is uncertain whether any digital assets other than Bitcoin and Ethereum may in the future be added to the Underlying Index.”
It also does not rule out additional tokens. In fact, the SEC has allowed the SEC to add more as it sees fit.
S-1 details are included in the S-1 form. “In accordance with the Index Rules, the Underlying Index only includes digital assets that are determined by the Index Provider as being in conformance with prevailing capital markets regulations of major financial jurisdictions including the United States.”
Franklin Templeton states in his application that he would need that “the SEC has approved or permitted an exchange-traded product/fund” For a token given before adding it to the Franklin Crypto Index ETF.
It already has a Bitcoin ETF that was approved in the SEC’s first batch of ETFs, back in January of 2024.
The current value is $743,7 million. Its sister Ethereum ETF has a market cap of $33,9 million.
Franklin Crypto Index ETF, if it is approved, will list also on Cboe BZX Exchange. This could represent an important breakthrough for many commentators.
“The approval of a multi-asset crypto ETF could lay out the next phase for institutional and everyday investors seeking exposure to digital assets, without being correlated to one specific asset,” Jeff Hancock, CEO of Coinpass and co-founder, spoke with Decrypt.
Hancock explains that the launch of ETFs in multiple currencies is an “inevitability,” It is suggested that approval of ETFs will bring benefits to investors. “much-needed liquidity” The market as well as providing institutions with “unlimited options” In terms of asset allocation.
Franklin Templeton was the one who had approved the initial version of this fund. Its original vision included investing only in Bitcoin and Ethereum.
The SEC approved Franklin’s request for accelerated approval in a press release on December 19, 2024. This would have facilitated the listing of the ETF.
This was done by the regulator at the end January, for Bitwise Bitcoin ETF and Ethereum ETF. The Bitwise Bitcoin Ethereum ETF is still going through the S-1 process.
The same thing—minus the fast tracking—applies to Hashdex’s Nasdaq Crypto Index US ETF, which will also invest in BTC and ETH.
These filings are part of a growing trend for other cryptocurrencies than Bitcoin and Ethereum. Bitwise and Grayscale filed Dogecoin-based ETFs back in January, while four companies have applied for XRP Equities in just the past 24 hour period.
After Donald Trump’s election in November, investment firms increased their applications for crypto ETFs. Trump chose the crypto-friendly Paul Atkins to be the chairperson of the SEC. This has led many investors to believe that the SEC will approve more applications.
Glen Goodman believes that Atkins, the SEC’s new commissioner, will ensure the Franklin Crypto Index ETF is approved. “be much easier” Approval of crypto-focused investments vehicles
The man tells Decrypt, “Paul Atkins […] is about as pro-crypto as the industry could hope for. When he takes over, the shift from Gensler's SEC to Atkins' SEC will be like night and day.”
Stacy Elliott is the editor.