Franklin Templeton follows Hashdex in launching spot Bitcoin and Ethereum combo ETF

Asset management giant Franklin Templeton launched its spot Bitcoin and Ethereum combo exchange-traded fund on Cboe BZX on Thursday, two months after receiving Securities and Exchange Commission approval.

The Franklin Crypto Index ETF (EZPZ) initially provides exposure to the price movements of bitcoin and ether on a market cap-weighted basis, currently 82% to 18% in bitcoin's favor, via a single investment vehicle. However, the fund will also be able to add further cryptocurrencies should they be given regulatory approval in the future, though Franklin did not specify any assets in particular. EZPZ has a sponsor fee of 0.19%, waived until the end of August, with Coinbase acting as the fund's custodian.

"EZPZ offers a convenient and low-cost way to gain exposure to the two most established and largest blockchain ecosystems," Franklin Templeton Global Head of ETF Product and Capital Markets David Mann said in a statement . "In the longer-term, the ETP intends to add any new coins as they become eligible for index inclusion. It is our hope this ETP evolves to represent beta for crypto."

Franklin's EZPZ follows the launch of the first U.S. spot Bitcoin and Ethereum combo fund, the Hashdex Nasdaq Crypto Index US ETF, on Feb. 14. The SEC approved both products for trading on Dec. 20. The move reinforces the growing institutional interest in digital assets, BRN analyst Valentin Fournier told The Block.

"Today Franklin Templeton is following Hashdex in the launch of a dual Bitcoin and Ethereum ETF. Both will ultimately be crypto index ETFs as the SEC allows more digital assets in the ETF wrapper," Bloomberg ETF analyst James Seyffart said on X. "Side note. EZPZ is such a great ticker."

"Franklin Templeton is making investing in a low cost portfolio of crypto EZPZ," Franklin Templeton Head of Digital Assets Roger Bayston added. "Blockchains are emerging as important utilities for the current and future information and data economies. These networks are being developed to solve real-world problems and unlock new possibilities."

EZPZ marks Franklin's third digital asset ETF launch following its EZBC spot Bitcoin ETF in January 2024 and EZET spot Ethereum ETF the following July. EZBC has since attracted $443.8 million in net inflows, with $692.2 million in assets under management, according to data compiled by The Block. EZET has generated $37.6 million in net inflows, with a current $33 million AUM.