Franklin Templeton has launched the Franklin Crypto Index ETF (EZPZ) to provide exposure to Bitcoin and Ethereum. The ETF is custodied by Coinbase, with an initial distribution of approximately 87% in Bitcoin and 13% in Ethereum. It features a sponsor fee of 0.19%, which will be waived until the fund either accumulates $10 billion in assets or reaches August 31, 2025.
This is Franklin Templeton’s third cryptocurrency ETF, following the Franklin Bitcoin ETF (EZBC) and Franklin Ethereum ETF (EZET), which received approval in January and June 2024, respectively. The ETF mirrors the CF Institutional Digital Asset Index, currently comprising only Bitcoin and Ethereum but potentially expanding to include other cryptocurrencies in the future.
According to David Mann, Franklin Templeton’s global head of ETF product and capital markets, EZPZ offers a simple and economical way to participate in the two leading blockchain ecosystems. He also noted that the ETF is intended to adapt over time to incorporate additional eligible assets. The firm highlighted that this ETF enables investors to capitalize on crypto price movements without the need to buy Bitcoin or Ethereum directly.
The fund represents the second cryptocurrency index ETF available in the U.S. market, following the launch of Hashdex’s Nasdaq Crypto Index U.S. ETF (NCIQ) in February 2024. Similar to Franklin’s ETF, Hashdex’s fund currently focuses solely on Bitcoin and Ethereum but is also anticipated to broaden its holdings.
Meanwhile, the Securities and Exchange Commission (SEC) has accepted 21Shares’ filing to permit staking in its Ethereum ETF. If this filing is approved, it could lead to substantial inflows into Ethereum spot ETFs. The regulator is also reviewing several applications for ETFs that hold altcoins such as Solana, XRP, and Litecoin. Analysts at Bloomberg believe there is a significant likelihood of some of these applications receiving approval.
Franklin Resources, the parent company of Franklin Templeton, has recently reported first-quarter earnings that exceeded expectations. The company recorded an adjusted earnings per share of $0.59, surpassing the anticipated $0.56, with revenues of $2.25 billion also exceeding the $1.71 billion forecast. Despite this, Franklin Resources experienced $50 billion in net outflows, primarily attributed to its Western Asset Management division. Analysts have observed encouraging trends in higher gross sales and an unfunded pipeline, which may enhance future performance.
Both TD Cowen and BofA Securities have revised their price targets for Franklin Resources to $20. While TD Cowen has maintained a Hold rating, BofA Securities has kept an Underperform rating. The company has announced a plan to reduce costs by 5% by early 2027, targeting savings of $200-250 million.
Currently managing over $32 billion in ETF and ETP assets, Franklin Templeton boasts a market capitalization of nearly $11 billion and serves clients across more than 150 countries. The firm continues to broaden its digital asset offerings while upholding a 45-year history of consistent dividend payments.
