Franklin Templeton Launches Second US Crypto ETF, EZPZ

Franklin Templeton, a prominent global investment management firm, has launched the Franklin Crypto Index ETF (EZPZ), an exchange-traded fund that holds both spot Bitcoin and Ether. The announcement was made on February 20, marking the second cryptocurrency index ETF to hit the US market, following Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) which launched on February 14.

EZPZ tracks the US CF Institutional Digital Asset Index, which currently consists solely of Bitcoin and Ether. As of February 20, the index is market-cap weighted, with approximately 87% allocated to BTC and 13% to ETH, according to CF Benchmarks. The fund is managed with secure custody by Coinbase and offers a 0.19% sponsor fee, which will be waived for investors until August 31, 2025.

Franklin Templeton plans to expand the ETF’s holdings as more digital assets are added to the index, ultimately positioning EZPZ as a diversified crypto portfolio for US investors. The asset manager highlighted that EZPZ offers exposure to Bitcoin and Ether “without the hassle of buying them directly.” It also noted that additional cryptocurrencies will be included in the ETF once they meet regulatory requirements.

EZPZ is Franklin Templeton’s third digital asset exchange-traded product (ETP) within a year. The firm previously launched the Franklin Bitcoin ETF (EZBC) on January 11, 2024, and the Franklin Ethereum ETF (EZET) on July 23, 2024. “This expanding suite of digital asset ETPs highlights Franklin Templeton’s ongoing commitment to providing secure, transparent, and modern investment solutions that address the evolving needs of clients,” the company stated.

Like Franklin Templeton, Hashdex’s NCIQ currently holds only BTC and ETH but has similar plans to broaden its asset selection in the future. Since Trump’s return to the Oval Office, asset managers have filed numerous regulatory applications to list ETFs holding altcoins, including Solana (SOL), XRP, and Litecoin (LTC), among others. Bloomberg Intelligence expects “relatively high odds of approval across the board” for the new crypto ETF filings.