Franklin Templeton Launches Crypto ETF: EZPZ Tracks Bitcoin and Ether

Franklin Templeton, a global asset management giant with $1.5 trillion in assets under management, has launched the Franklin Crypto Index ETF, an exchange-traded fund that offers exposure to Bitcoin and Ether, the two largest cryptocurrencies by market capitalization. The fund, trading under the ticker EZPZ, tracks the CF Institutional Digital Asset Index, which currently allocates approximately 82% to Bitcoin and 18% to Ether, weighted by market capitalization.

The product may include other cryptocurrencies as they become eligible for index inclusion, according to David Mann, Global Head of ETF Product and Capital Markets at Franklin Templeton. Franklin expects the ETF to become a benchmark for crypto investment products.

Launching the new crypto ETP, Franklin aims to make investing in cryptocurrency easier and more accessible to investors through a traditional investment vehicle like an ETF. The sponsor fee, which covers the costs of managing the ETF, is waived for the first $10 billion in assets. After the waiver period ends, meaning the assets exceed $10 billion, Franklin will charge a 0.19% sponsor fee. This makes it an attractive option for investors looking to gain exposure to BTC and ETH.

The EZPZ fund doesn’t directly hold Bitcoin and Ether. It provides indirect exposure, meaning its value is tied to the price movements of these cryptocurrencies. Coinbase manages the secure custody of digital assets.

With the new offering, Franklin aims to position itself as a leader in offering cryptocurrency investment products. The EZPZ joins the growing list of Franklin’s digital asset ETPs, which already include the spot Bitcoin ETF (EZBC) and spot Ether ETF (EZET).

The launch comes after CBOE BZX Exchange, on behalf of Franklin Templeton, filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) last September. The SEC acknowledged the filing on December 19 and briefly approved the Franklin Templeton Crypto Index ETF.

The SEC, on the same day, also greenlit Hashdex’s dual Bitcoin-Ethereum ETF, the Hashdex Nasdaq Crypto Index US ETF. Hashdex has recently been granted approval from Brazil’s Securities and Exchange Commission to list and trade its XRP ETF on the B