Franklin Templeton is poised to broaden its presence in the cryptocurrency market with the introduction of the Franklin Crypto Index ETF. This new fund, which will be designated under the ticker symbol EZPZ, aims to track the CF Institutional Digital Asset Index–US–Settlement Price, encompassing major digital currencies such as Bitcoin and Ethereum.
The application, submitted on August 16 to the Securities and Exchange Commission (SEC), highlights the ETF’s focus on a digital currency index. Nate Geraci, president of The ETF Store in Overland Park, Kansas, suggested that such developments are a natural progression. “The launch of spot bitcoin and Ethereum ETFs was merely the beginning of a broader trend toward index-based and actively managed crypto ETFs,” Geraci remarked, noting the unprecedented success of spot bitcoin ETFs.
This move by Franklin Templeton aligns with the growing investor interest in crypto assets. Earlier this year, the SEC approved various funds based on the spot prices of Bitcoin and Ethereum, which have collectively attracted substantial investments.
Although Franklin Templeton refrained from commenting on EZPZ during the filing period, the firm currently manages the Franklin Bitcoin ETF (EZBC) with $390 million in assets, launched on January 11, and the Franklin Ethereum ETF (EZET) with $31 million in assets under management, introduced on July 23.
David Mann, Franklin Templeton’s head of ETF Product & Capital Markets, acknowledged the positive reception of spot crypto ETFs in the U.S. market. “EZBC has become one of our fastest-growing products, and our EZET product is performing well based on flow metrics,” Mann stated.
The filing also notes that any additions to the underlying index tracked by EZPZ will require updates to the filing. Franklin Templeton plans to fully replicate the index as it evolves.
Geraci anticipates that the success of existing spot crypto ETFs will drive further innovation in the sector. “The evolution from single spot ETFs to multi-asset products is a natural progression,” he said. “Diversification in digital assets is appealing, as it allows financial advisors to offer a more comprehensive investment approach, which may be more attractive than selecting individual cryptocurrencies.”
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