Franklin Templeton has unveiled its latest offering, the Franklin Crypto Index ETF (EZPZ), providing investors with exposure to the two largest cryptocurrencies, Bitcoin and Ethereum. The ETF, which is custodied by Coinbase, begins with an initial allocation of approximately 87% Bitcoin and 13% Ethereum. It comes with a sponsor fee of 0.19%, which will be waived until the fund either amasses $10 billion in assets or reaches August 31, 2025.
The launch of the EZPZ ETF marks Franklin Templeton’s third foray into the cryptocurrency market, following the approval of the Franklin Bitcoin ETF (EZBC) and Franklin Ethereum ETF (EZET) in early 2024. EZPZ tracks the CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum but is expected to expand to other cryptocurrencies as eligible assets emerge.
David Mann, Franklin Templeton’s global head of ETF product and capital markets, emphasized the fund’s design as a simple and cost-effective way for investors to gain exposure to the two largest blockchain ecosystems. “The ETF is built to evolve over time,” he stated, noting that it may expand to include additional digital assets. The company also highlighted that the ETF allows investors to benefit from cryptocurrency price movements without the need to purchase Bitcoin or Ethereum directly.
EZPZ enters a competitive market, becoming the second cryptocurrency index ETF in the U.S., following Hashdex’s Nasdaq Crypto Index U.S. ETF (NCIQ), which launched in February 2024. Like EZPZ, Hashdex’s fund currently holds only Bitcoin and Ethereum, with plans to diversify its holdings in the future.
In regulatory news, the U.S. Securities and Exchange Commission (SEC) has taken note of 21Shares’ application to include staking in its Ethereum ETF. If approved, this could pave the way for significant inflows into Ethereum-based ETFs. Additionally, the SEC is reviewing multiple applications for ETFs holding altcoins such as Solana, XRP, and Litecoin, with analysts from Bloomberg predicting a high likelihood of approval for some of these funds.
Meanwhile, Franklin Templeton’s parent company, Franklin Resources, recently reported better-than-expected first-quarter earnings. The company posted an adjusted earnings per share of $0.59, surpassing the $0.56 estimate, and generated $2.25 billion in revenue, exceeding the forecasted $1.71 billion. Despite these positive results, the company faced $50 billion in net outflows, primarily from its Western Asset Management division. Analysts noted improvements in gross sales and an unfunded pipeline, which may boost future performance.
Both TD Cowen and BofA Securities have revised their price targets for Franklin Resources to $20. TD Cowen maintained a Hold rating, while BofA Securities kept an Underperform rating. The company has also outlined plans to reduce costs by 5% by early 2027, aiming to save between $200 million and $250 million.
Franklin Templeton, which oversees over $32 billion in ETF and ETP assets, continues to expand its digital asset offerings while maintaining a 45-year track record of consistent dividend payments. With a market capitalization nearing $11 billion, the firm serves clients in over 150 countries.
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