Franklin Templeton launches crypto index ETF

Franklin Templeton has launched its Franklin Crypto Index ETF (EZPZ), offering exposure to both Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH).

The asset manager announced the launch on February 20, marking the second cryptocurrency index ETF to enter the U.S. market.

The EZPZ fund tracks the US CF Institutional Digital Asset Index, holding approximately 87% Bitcoin and 13% Ether as of February 20, according to CF Benchmarks.

Franklin Templeton intends to include additional cryptocurrencies in EZPZ as they meet the index's eligibility criteria, aiming to create a comprehensive crypto portfolio solution for U.S. investors.

According to Franklin Templeton, the fund offers "exposure to Bitcoin and Ether without the hassle of buying them directly."

The company also stated that this "innovative offering plans to add new digital assets as they become eligible for inclusion in the Underlying Index, pending necessary regulatory approvals."

Hashdex's Nasdaq Crypto Index US ETF (NCIQ), launched on February 14, was the first crypto index ETF.

Like EZPZ, NCIQ currently holds only Bitcoin and Ether but has plans to expand its offerings in the future.

"EZPZ offers a convenient and low-cost way to gain exposure to the two most established and largest blockchain ecosystems," said David Mann, Global Head of ETF Product and Capital Markets at Franklin Templeton.

The fund's sponsor fee of 0.19 percent will be waived for investors until August 31, 2025.

Coinbase will provide secure custody for the ETP.

Bloomberg ETF analyst James Seyffart believes EZPZ "will ultimately" become a crypto index ETF as the SEC approves more digital assets in the ETF.

Franklin Templeton has over 75 years of investment experience and $1.58 trillion in assets under management as of January 31, 2025.

Franklin Templeton's share price closed at $20.73 on February 20, 2025.