Franklin Templeton, the worldwide asset management behemoth managing $1.5 trillion in assets, has introduced the Franklin Crypto Index ETF, a new exchange-traded fund that provides exposure to Bitcoin and Ether, the two foremost cryptocurrencies by market capitalization.
As noted in a press release dated Feb. 20, the fund, trading under the ticker EZPZ, follows the CF Institutional Digital Asset Index, which currently allocates roughly 82% to Bitcoin and 18% to Ether, weighted by market cap.
The offering may incorporate other cryptocurrencies as “they qualify for index inclusion,” stated David Mann, Global Head of ETF Product and Capital Markets at Franklin Templeton. Franklin anticipates this ETF to become a standard for crypto investment instruments.
Here Come Deep Markets!
With the debut of the new crypto ETP, Franklin seeks to simplify investment in cryptocurrency, making it more reachable for investors through a conventional investment vehicle like an ETF.
The sponsor fee, which encompasses the expenses associated with managing the ETF, is waived for the initial $10 billion in assets. Once the waiver period concludes, meaning the assets surpass $10 billion, Franklin will impose a 0.19% sponsor fee. This positions it as an appealing choice for investors aiming to gain exposure to BTC and ETH.
The EZPZ fund does not hold Bitcoin and Ether directly. Instead, it offers indirect exposure, indicating its value is connected to the price fluctuations of these cryptocurrencies. Coinbase oversees the secure custody of digital assets.
With the new introduction, Franklin aspires to establish itself as a frontrunner in providing cryptocurrency investment options. The EZPZ adds to the expanding collection of Franklin’s digital asset ETPs, which already feature the spot Bitcoin ETF (EZBC) and spot Ether ETF (EZET).
This launch follows the CBOE BZX Exchange, on behalf of Franklin Templeton, filing a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) last September. The SEC recognized the filing on December 19 and briefly approved the Franklin Templeton Crypto Index ETF.
On the same day, the SEC also approved Hashdex’s dual Bitcoin-Ethereum ETF, the Hashdex Nasdaq Crypto Index US ETF. Recently, Hashdex received authorization from Brazil’s Securities and Exchange Commission to list and trade its XRP ETF on the B3 exchange.
Franklin Templeton Eyes ETF Expansion in 2025
Franklin Templeton views their ETFs as a mechanism to integrate crypto into the traditional finance (TradFi) ecosystem, enhancing accessibility for conventional investors. The California-based fund manager intends to broaden their crypto index funds this year, contemplating the introduction of ETFs that track a wider variety of cryptocurrencies.
In a January discussion, Roger Bayston, Head of Digital Assets at Franklin Templeton, remarked that diversification would be the firm’s primary focus in crypto investment in 2025.
Earlier this month, Franklin Templeton submitted a proposal to establish the Franklin Solana Trust in Delaware, signifying that the firm intends to formally file for an ETF that directly holds SOL, currently the sixth largest cryptocurrency.
The firm has also recently launched its tokenized money market fund, the OnChain US Government Money Fund (FOBXX), on Solana. The fund is already operational on seven other chains, including Ethereum, Aptos, and Base.
In contrast to some rivals who are actively pursuing a range of crypto ETFs, such as those linked to Dogecoin or XRP, Franklin is adopting a systematic approach, investigating and assessing various crypto assets in the same way they do with traditional asset categories.
This may be reminiscent of BlackRock; however, Larry Fink’s asset management corporation is more cautious when it comes to other crypto ETFs.
While there is enthusiasm within the crypto community regarding a Solana ETF, with some analysts foreseeing high probabilities of approval in the future, BlackRock is sharpening its emphasis on Bitcoin and Ethereum ETFs.
Jay Jacobs from BlackRock has commented that they are “scratching the surface,” concentrating on building trust in cryptocurrency ETFs and engaging conservative and institutional investors.
It’s also about demand. Crypto ETFs outside of Bitcoin and Ether are currently perceived as having low demand, according to BlackRock. Moreover, Solana’s market maturity is also deemed insufficient compared to the two leading digital assets.
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