Altcoin ETFs Are Finally Here! Franklin Templeton Takes the First Step

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Key Takeaways

Why is this expansion happening now?

Ah, a new world of possibility opens up! Thanks to a freshly minted Cboe rule (approved by the SEC, of course), crypto ETFs can now embrace a broader collection of tokens. As long as they’re on the “cool kids” list – or should we say the benchmark index – they’re in! 🤩

How will the ETF operate under the new rules?

Franklin Templeton’s magic trick? They’ll rebalance every three months, folks. Yes, three months. No need to worry, they’ve got the digital assets (in-kind creation and redemption) to back it all up. 🪄✨

In this epic game of crypto ETF chess, Franklin Templeton isn’t exactly sitting back and chilling. No, no. They’re boldly stepping into the spotlight, showing up to the altcoin party with some serious swag. 💥

In their latest SEC filing, they’ve announced plans to shake things up by adding XRP, Solana, and Dogecoin to their Franklin Crypto Index ETF, which was once solely obsessed with Bitcoin and Ethereum. But hey, no one said they were exclusive. 💸

Franklin Templeton opens its gates for altcoin ETFs

Come December 1st, Franklin Templeton’s fund will be tracking a fancy new basket of digital assets. These additions are no accident, mind you; they’re part of a master plan driven by those new Cboe rules approved by the SEC. So, what does this mean for us mere mortals? More options, more tokens, more excitement. 🎉

The new SEC-approved rules now let crypto-linked ETFs hold a wider set of tokens – provided they’re blessed by the benchmark index. Yes, we’re talking about official crypto validation. 🏅

Which altcoins were included?

Brace yourselves. Ripple [XRP], Solana [SOL], Dogecoin [DOGE], Cardano [ADA], Stellar [XLM], and Chainlink [LINK] are now on the list. And no, the index provider will decide the amounts, not the ETF issuers. Gasp! No free-for-all, huh? 😜

This means the ETF will follow its index to the letter, no surprise selections or “I like this one better” moments. Like it or not, it’s all about the benchmarks. 📊

The fund will also be rebalancing every three months, so keep your eyes peeled. As market conditions shift or indexes update, so will Franklin Templeton’s holdings. Talk about keeping things fresh. 🌿

Market action reflected that energy

And just to show that Franklin Templeton isn’t playing games here, less than 24 hours after this ETF news dropped, they launched their spot XRP product, the XRPZ trust. Oh, and it comes with a 0.19% sponsor fee. Fancy, huh? 💎

Meanwhile, Grayscale wasn’t napping. They rolled out their GXRP ETF with zero fees. Zero. Nada. Zilch. If that’s not a sign of fierce competition, what is? 😏

CoinMarketCap is reporting some juicy numbers too. XRP traded at $2.24, up 8.61% in 24 hours. Solana, always the overachiever, climbed to $137.79 (+5.54%), and Dogecoin finally made it to $0.1507 (+3.01%). So, yeah, things are looking up for altcoins. 🚀

But, wait-ETF flow data is giving us mixed signals. Franklin Templeton’s Bitcoin and Ethereum ETFs saw zero flows on the 21st and 24th of November. Zero. 🙄

Grayscale’s BTC ETF? Oh, it logged zero flows on November 24th, but on the 21st, it raked in $61.5 million. Nothing too shabby, right? And the broader Grayscale Bitcoin product added another $84.9 million. So, it’s not all bad news. 💰

Grayscale’s ETHE fund saw flat flows on both days, but its other Ethereum vehicle managed some modest inflows of $7.7 million and $9.8 million on the 21st and 24th, respectively. I mean, slow and steady wins the race? 🐢

Solana’s Grayscale ETF, GSOL, brought in some serious cash too. It pulled in $1.14 million on November 21st and $4.7 million on the 24th. Not bad, not bad at all. 🤑

What’s more?

All of these new filings, launches, and dramatic market reactions show us that the ETF landscape is changing. Bitcoin and Ethereum are no longer the only stars in this crypto universe. The altcoins are coming for the throne. 👑

And while ETF flows show some signs of fragility, the growing interest in altcoin ETFs suggests that investors might be shifting their attention away from the big guys (BTC and ETH) toward a more diverse mix of crypto assets. They say variety is the spice of life. 🌶️

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2025-11-25 14:34