Franklin Templeton, renowned for managing $1.5 trillion, presents unveiled the Franklin Crypto Index ETF, an exchange-traded fund providing exposure to Bitcoin and Ether, the leading cryptocurrencies by market value.
A press release dated February 20 reveals that the ETF, identified by ticker EZPZ, mirrors the CF Institutional Digital Asset Index, which allocates about 82% to Bitcoin and 18% to Ether, adjusted by market cap.
David Mann, responsible for ETF Product and Capital Markets globally at Franklin Templeton, indicated that this product might embrace other cryptocurrencies as they become viable for the index. Franklin hopes this ETF will set a standard in crypto investment products.
Here Come Deep Markets!
With the launch of the new crypto ETP, Franklin aims to simplify cryptocurrency investments for investors through a conventional channel like an ETF.
The cost for managing the ETF, known as the sponsor fee, is waived up to the first $10 billion of assets. Beyond this threshold, a sponsor fee of 0.19% is imposed, making it appealing for those interested in BTC and ETH.
The EZPZ fund offers exposure to Bitcoin and Ether not by holding these assets directly but by linking its value to their price movements. Coinbase is responsible for the secure custody of these digital assets.
Franklin aims to position itself as a frontrunner in cryptocurrency investment products with its new offering. The EZPZ fund adds to Franklin’s lineup of digital asset ETPs, including its spot Bitcoin ETF (EZBC) and spot Ether ETF (EZET).
Following the submission of a 19b-4 form by CBOE BZX Exchange for Franklin Templeton, the U.S. SEC recognized it on December 19 and provisionally approved the Franklin Templeton Crypto Index ETF.
On the same day, the SEC approved Hashdex’s dual Bitcoin-Ethereum ETF, known as the Hashdex Nasdaq Crypto Index US ETF. Recently, Hashdex received authorization from Brazil’s SEC to trade its XRP ETF on the B3 exchange.
Franklin Templeton Plans ETF Expansion in 2025
Franklin Templeton sees their ETFs as an avenue to integrate crypto into traditional finance (TradFi), making it more accessible to conventional investors. The California-based fund manager is eyeing an expansion of their crypto index funds this year, possibly introducing ETFs covering a broader array of cryptocurrencies.
Roger Bayston, Head of Digital Assets at Franklin Templeton, mentioned in a January interview that diversification will be their key strategy in crypto investing for 2025.
Earlier this month, Franklin Templeton signaled intentions to establish the Franklin Solana Trust in Delaware, which suggests a forthcoming filing for an ETF directly holding SOL, currently the sixth-largest cryptocurrency.
The firm recently introduced its tokenized money market fund, the OnChain US Government Money Fund (FOBXX), on Solana. The fund is already operational on seven other blockchains, including Ethereum, Aptos, and Base.
While some competitors actively pursue offering diverse crypto ETFs linked to assets like Dogecoin or XRP, Franklin maintains a deliberate pace, evaluating and analyzing different crypto assets with the same rigor as traditional ones.
While they might share similarities with firms like BlackRock, Larry Fink’s asset management giant remains skeptical when considering other crypto ETFs.
Optimism surrounds a Solana ETF within the crypto community, with analysts forecasting strong approval prospects, yet BlackRock concentrates mainly on Bitcoin and Ethereum ETFs.
Jay Jacobs from BlackRock remarked that they are still in the preliminary stages, looking to build trust in cryptocurrency ETFs and appeal to cautious and institutional investors.
It comes down to market demand. According to BlackRock, ETFs focusing on cryptocurrencies beyond Bitcoin and Ether are currently not in high demand. Solana also lacks the market maturity compared to these leading digital currencies.
