Franklin Templeton Launches Bitcoin and Ether ETF ‘EZPZ’

Franklin Templeton has launched its latest cryptocurrency exchange-traded product, the Franklin Crypto Index ETF (ticker: EZPZ), on February 20. This marks the asset manager’s third major crypto ETF, following the launch of the Franklin Bitcoin ETF (EZBC) and Franklin Ethereum ETF (EZET) in January and June 2024, respectively.

The EZPZ ETF offers exposure to Bitcoin and Ethereum, the two largest digital assets by market capitalization. The fund aims to reflect the market movements of BTC and ETH and is designed to be a convenient and low-cost way for investors to gain exposure to these established blockchain ecosystems. The ETF’s weighting currently consists of 82% Bitcoin and 18% Ethereum.

The launch of EZPZ follows the asset manager’s filing with the U.S. Securities and Exchange Commission (SEC) in August 2024 for approval, and it is noteworthy because Bitcoin and Ethereum remain the only single-asset spot crypto ETFs currently available in the U.S.

David Mann, Global Head of ETF Product and Capital Markets at Franklin Templeton, explained that in the longer term, the ETF may evolve to include additional coins as they become eligible for inclusion in the index. The company envisions the fund becoming a representative “beta” for the crypto market.

The fund will be custodied by Coinbase, a key partner in crypto asset management. The sponsor fee for the EZPZ ETF is 0.19%, though Franklin Templeton plans to waive the fee until August 31, 2025, or until the fund reaches its first $10 billion in assets under management.

This launch comes amid an increase in asset managers filing to introduce more spot crypto ETFs, including products focused on altcoins like XRP, Solana, Litecoin, and Dogecoin. The SEC has been processing these filings, with timelines for eventual approval or rejection.

Additionally, on February 20, the SEC acknowledged 21Shares’ filing, which seeks approval to add staking to its Ethereum ETF. Experts believe that this development could significantly boost inflows into Ethereum spot ETFs.

The Franklin Crypto Index ETF aims to provide exposure to the most dominant players in the crypto space and could become an attractive option for institutional investors seeking access to the digital asset market.