Asset management giant Franklin Templeton has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a new cryptocurrency exchange-traded fund (ETF), signaling further institutional interest in the digital asset space. The proposed ETF, named the Franklin Templeton Digital Asset Index Fund, would track a mix of major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). According to the filing, the fund aims to provide investors with broad exposure to the crypto market by investing in BTC and ETH, the two largest cryptocurrencies by market capitalization. If approved, the ETF would trade on the Cboe BZX Exchange, a leading U.S. equities and derivatives exchange. The move comes amid growing acceptance of cryptocurrency-based investment products, with several financial institutions seeking regulatory approval for ETFs that track digital assets. Earlier this year, the SEC approved multiple spot Bitcoin ETFs, allowing investors to gain exposure to BTC without holding the asset directly. Franklin Templeton was among the firms that launched a spot Bitcoin ETF, joining competitors such as BlackRock and Fidelity. Industry analysts view the filing as another step toward the mainstream adoption of digital assets in traditional finance. Franklin Templeton’s decision to include both Bitcoin and Ethereum in a single index fund suggests confidence in the long-term viability of these assets. Despite the positive momentum, regulatory uncertainty remains a key challenge for crypto-related financial products. The SEC has historically been cautious in approving ETFs tied to cryptocurrencies, citing concerns about market manipulation and investor protection. However, the recent wave of Bitcoin ETF approvals has set a precedent that could improve the chances of Ethereum and multi-asset crypto ETFs gaining regulatory approval. Franklin Templeton’s filing also highlights the growing competition among asset managers to bring crypto-based products to market. Firms like Grayscale, BlackRock, and Fidelity have already established themselves in the space, with Ethereum-focused ETF applications currently under SEC review. If Franklin Templeton’s index fund receives approval, it could attract investors looking for diversified exposure to the two largest cryptocurrencies. While Bitcoin has long been considered the dominant digital asset, Ethereum’s growing role in decentralized finance (DeFi) and smart contracts has made it a key player in the crypto ecosystem. The inclusion of ETH in the fund suggests that Franklin Templeton recognizes the importance of Ethereum’s network beyond just price speculation. Franklin Templeton has been expanding its presence in the digital asset industry in recent years. The firm has explored blockchain technology for traditional financial services and previously launched blockchain-based tokenized funds. By filing for a crypto index ETF, the asset manager is doubling down on its commitment to integrating digital assets into mainstream investment portfolios. The SEC has yet to provide a timeline for its decision on Franklin Templeton’s latest ETF proposal. If approved, the fund could mark another milestone in the institutional adoption of cryptocurrency, giving investors a regulated and familiar way to gain exposure to Bitcoin and Ethereum through traditional financial markets.
