Franklin Templeton Investments is pushing for regulatory approval to launch a new cryptocurrency index exchange-traded fund (ETF), the company announced on Thursday. This move comes as asset managers race to capitalize on the growing wave of crypto investments, fueled by Donald Trump’s victory in the U.S. presidential election.
During his campaign, Trump took a strong stance in favor of digital assets, vowing to transform the U.S. into the “crypto capital of the planet” and even proposing the accumulation of a national bitcoin stockpile. His administration’s pro-crypto outlook has bolstered investor sentiment, increasing the demand for regulated crypto investment vehicles.
The Securities and Exchange Commission (SEC) has historically resisted ETFs directly investing in cryptocurrencies, citing investor protection concerns. However, the regulatory body shifted its stance last year, approving both bitcoin and ether ETFs. These approvals have enabled a broader range of investors, including institutional players, to gain exposure to digital assets.
With the doors to crypto ETFs opening, several asset management firms have submitted applications to list ETFs for alternative cryptocurrencies such as Solana and XRP. However, these approvals remain pending as the SEC continues to assess their regulatory and market implications.
Franklin Templeton’s latest filing states that the new crypto index ETF will primarily hold bitcoin and ether, as these are currently the only approved digital assets. “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,” the firm clarified.
By structuring its fund this way, Franklin Templeton retains the flexibility to incorporate additional cryptocurrencies should the SEC grant approval in the future. With Trump’s pro-crypto policies potentially accelerating regulatory changes, market analysts believe the approval of more diverse crypto ETFs could be on the horizon.
Franklin Templeton’s application highlights the growing interest in crypto investments and the shifting regulatory landscape, signaling that traditional financial institutions are increasingly embracing digital assets.
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