Franklin Templeton launches Bitcoin and Ethereum index ETF
Franklin Templeton launches Bitcoin and Ethereum index ETF
Franklin Templeton has entered the U.S. cryptocurrency market with the launch of its Franklin Crypto Index ETF (EZPZ) on Feb. 20.
This new ETF, which holds both spot Bitcoin and Ether, is the second crypto index ETF to hit the U.S. market, following Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) that launched on Feb. 14. The EZPZ fund tracks the U.S. CF Institutional Digital Asset Index and is market capitalization weighted, currently comprising roughly 87% Bitcoin and 13% Ether. As of Feb. 20, Bitcoin was priced at approximately $98,423 and Ether at $2,748.
Expanding digital asset exposure
Franklin Templeton positions its ETF as a one-stop shop for U.S. investors seeking exposure to leading cryptocurrencies without the complexities of direct purchases. The fund’s innovative structure is designed to generate additional returns by staking its ETH holdings, with plans to incorporate new digital assets as they become eligible under the index. “This offering provides exposure to Bitcoin and Ether without the hassle of buying them directly,” the firm stated on its social media platform, signaling a shift towards more accessible crypto investing.
The launch of EZPZ comes as U.S. regulators continue to ease their stance on crypto oversight. With the SEC softening its approach after policy shifts following the Trump administration’s election, a surge of regulatory filings for crypto ETFs has emerged. In 2024, several asset managers sought approvals for ETFs holding altcoins like Solana, XRP, and Litecoin. Additionally, in October, NYSE Arca requested permission to list a Grayscale ETF featuring a diverse basket of spot cryptocurrencies. Analysts, including those at Bloomberg Intelligence, anticipate high odds of approval for these new filings, setting the stage for an expanded and more diversified crypto market in the United States.
