Franklin Templeton launches Bitcoin, Ether index ETF

Franklin Templeton has launched an exchange-traded fund (ETF) holding both spot Bitcoin and Ether, the asset manager said on Feb. 20. 

Franklin Crypto Index ETF (EZPZ) is the second cryptocurrency index ETF to hit the market after asset manager Hashdex launched its Nasdaq Crypto Index US ETF (NCIQ) on Feb. 14. 

Franklin Templeton’s EZPZ fund holds the basket of assets referenced in the US CF Institutional Digital Asset Index, which only tracks Bitcoin (BTC) and Ether (ETH) as of Feb. 20. 

The market capitalization-weighted index comprises roughly 87% BTC and 13% ETH as of Feb. 20, according to CF Benchmarks. 

Franklin Templeton plans for EZPZ to hold additional cryptocurrencies as they are added to the index, eventually serving as a one-stop-shop crypto portfolio for US investors.

The fund “provides exposure to bitcoin and ether without the hassle of buying them directly,” Franklin Templeton said in a post on the X platform. 

“This innovative offering plans to add new digital assets as they become eligible for inclusion in the Underlying Index, pending necessary regulatory approvals,” it added.

Hashdex’s NCIQ also only holds BTC and ETH at present but similarly plans to expand offerings in the future. 

Related: Bitwise files for 10 Crypto Index Fund ETF with the SEC

Backlog of crypto ETF filings

In a Dec. 19 notice, the US Securities and Exchange Commission approved Hashdex’s NCIQ, which trades on the Nasdaq stock exchange. The same day, the regulator also approved Franklin Templeton’s EZPZ, which is listed on Cboe BZX.

US regulators are softening their stance on crypto oversight after Donald Trump — who has promised to turn the US into the “world’s crypto capital” — prevailed in the US elections and then started his presidential term on Jan. 20.

In 2024, asset managers submitted a flurry of regulatory filings to list ETFs holding altcoins, including Solana (SOL), XRP (XRP) and Litecoin (LTC), among others. 

In October, NYSE Arca, a securities exchange, asked US regulators for permission to list a Grayscale ETF holding a diverse basket of spot cryptocurrencies.

The Grayscale Digital Large Cap Fund, which was created in 2018 but is not yet exchange-traded, holds a crypto index portfolio comprising BTC, ETH, SOL and XRP, among others.

Bloomberg Intelligence anticipates “relatively high odds of approval across the board” for new crypto ETF filings.

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