The crypto ETF market is undergoing one of its biggest shifts yet.
Just days after the highly anticipated XRP spot ETF hit the market, heavyweight asset manager Franklin Templeton is signaling where the industry is headed next: diversified crypto portfolios, multi-asset baskets, and thematic digital asset funds.

This marks a major shift away from the single-asset ETF era dominated by Bitcoin and Ethereum — and toward a more mature, traditional finance-style structure for crypto allocations.

But they aren’t the only ones expecting a tidal wave of new funds.

According to Bloomberg Senior ETF analyst Eric Balchunas, the crypto ETF market is about to explode:

“Expect 100+ new crypto ETFs within the next six months.” — Eric Balchunas

This includes baskets, blends, sector-specific portfolios, and even actively managed crypto strategies.

Let’s break down what this means — and why it’s happening now.

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The XRP ETF Changed the Game

While Bitcoin and Ethereum ETFs brought in billions, the XRP ETF marks a turning point:

• It’s the first major non-PoW Layer-1 blockchain with a U.S.-listed spot ETF.
• It gives institutions access to a payments-focused crypto asset with real-world utility.
• It opens the door for more non-BTC/ETH blue-chip ETFs, especially under the new SEC environment.

Franklin Templeton believes this unlocks a new era:

“Investors will want diversified crypto exposure, not single-token bets.”

This mirrors the evolution of equities:

1. First: single-stock ETFs
2. Then: sector ETFs
3. Finally: multi-asset and thematic portfolios

Crypto is now entering stage 2 and 3.

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Why Diversified Crypto Portfolios Are the Next Wave

Franklin Templeton — one of the earliest Wall Street firms to embrace tokenization — says the demand for diversified baskets will rise for several reasons:

1. Reduced Volatility

Single-asset ETFs like BTC and ETH swing wildly.
Portfolio baskets lower risk through exposure to multiple sectors.

2. Access to Emerging Sectors

Expect ETFs targeting:

• Smart contract platforms
• Payment tokens
• DeFi
• Web3 infrastructure
• RWA (real-world assets) tokens
• Interoperability networks
• Privacy coins (if regulators allow)

3. Compliance-Friendly Exposure

Institutions prefer regulated diversification versus self-custodying 10+ assets.

4. Performance Optimization

A mix of high-growth assets (SOL, AVAX, LINK) plus defensives (BTC, ETH) allows balanced risk-adjusted returns.

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Eric Balchunas: “We’re About to See a Flood of Crypto ETFs”

Bloomberg’s Balchunas is rarely wrong on ETF forecasting — and he’s blunt:

“Now that XRP and ETH approvals are done, the SEC will face nonstop ETF filings across dozens of asset classes.”

Expected categories include:

✔️ Layer-1 Index ETFs

• BTC, ETH, XRP, SOL, ADA, AVAX baskets

✔️ DeFi ETFs

• AAVE, UNI, MKR, CRV

✔️ Web3 Infrastructure ETFs

• LINK, AR, FIL, PYTH, RNDR

✔️ Stablecoin Yield ETFs

• Using on-chain Treasury-backed stablecoin strategies

✔️ Active Trading Crypto ETFs

• Professional managers adjusting allocations weekly

✔️ Multi-asset Crypto Portfolios (The Big One)

Franklin Templeton, VanEck, ARK, and Fidelity are all expected to file.

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What This Means for Investors

1. Crypto Exposure Gets Institutionalized

Diversified ETFs attract pension funds, sovereign wealth funds, and retirement accounts.

2. Altcoins Will See Historic Liquidity Inflows

ETFs create automatic recurring demand for:

• SOL
• XRP
• LINK
• ADA
• DOT
• AVAX
• And newer entrants like PYTH, HYPE, QUBIC, NAORIS

This is bullish beyond just Bitcoin.

3. Market Volatility May Decrease Over Time

More structured products → more stable flows → less emotional trading.

4. Crypto Becomes an Asset Class, Not a Niche

This is the same transition gold, emerging markets, and tech stocks made before going mainstream.

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Conclusion: The ETF Era Is Only Beginning

The launch of the XRP ETF marks more than just another listing — it marks the beginning of diversified crypto investing on Wall Street.

Franklin Templeton sees this clearly.
Eric Balchunas sees the flood coming.
And the market is preparing for the next evolutionary step.

The next six months will reshape the entire structure of crypto investing.

We are entering the Index Fund Era of Crypto.