Franklin Templeton Investments announced on Thursday that it is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a new crypto index exchange-traded fund (ETF). The move comes as asset managers aim to capitalize on the growing interest in cryptocurrency, further fueled by Donald Trump’s victory in the U.S. presidential elections.
Trump’s campaign had shown strong support for digital assets, with promises to turn the U.S. into the “crypto capital of the planet” and build a national bitcoin reserve.
SEC Approves Bitcoin and Ether ETFs
For years, the SEC had resisted allowing ETFs that invest in bitcoin, citing concerns over investor protection. However, last year, the SEC approved ETFs that track the performance of bitcoin and ether, giving institutional and retail investors greater access to these digital currencies.
Since the approval, several asset management firms have sought approval for ETFs focusing on other cryptocurrencies, such as Solana and XRP. However, these applications are still awaiting the SEC’s green light.
Franklin Templeton’s Crypto ETF Restrictions
In its regulatory filing, Franklin Templeton clarified that the new crypto index ETF will initially only hold bitcoin and ether. The firm also stated that it is uncertain whether any other digital assets will be included in the ETF’s underlying index in the future, depending on SEC approvals for other cryptocurrencies.
By keeping the option open, Franklin Templeton gives itself the flexibility to adjust the ETF’s holdings if more cryptocurrencies are authorized by the SEC in the future.
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