Franklin Templeton has introduced the Franklin CryptoIndex ETF (EZPZ), which provides exposure to Bitcoin and Ethereum. The ETF is detained by Coinbase and has an initial allocation of around 87% Bitcoin and 13% Ethereum. The fund has a sponsorship fee of 0.19%, which is exempt until accumulating $10 billion in assets or reaching August 31, 2025.
It is Franklin Templeton’s third cryptocurrency ETF after the Franklin Bitcoin ETF (EZBC) and Franklin Ethereum ETF (EZET), approved in January and June 2024. Over time, it may expand to other cryptocurrencies.
David Mann, global head of ETF products and capital markets at Franklin Templeton, said EZPZ offers an easy and cost-effective way to get exposed to the two biggest blockchain ecosystems. He also said ETFs are designed to evolve over time to include more assets as they qualify. The company emphasized that ETFs will allow investors to access crypto-price movements without purchasing Bitcoin or Ethereum directly.
The fund is the second cryptocurrency index ETF in the US market, following Hashdex’s NASDAQ Crypto Index US ETF (NCIQ), which began in February 2024. Hashdex funds currently own only Bitcoin and Ethereum, but they plan to expand their holdings.
Meanwhile, the Securities and Exchange Commission (SEC) has allowed the filing of 21 shares to add staking to the Ethereum ETF. If approved, this could lead to a significant influx into the Ethereum Spot ETF. The regulator also reviews multiple applications of ETFs that hold Altcoins, such as Solana, XRP, and Litecoin. Bloomberg analysts believe some of these applications are likely to be approved.
Franklin Resources, the parent company of Franklin Templeton, recently reported first-quarter revenues that exceeded expectations. The company has recorded adjusted profit of $0.59 and revenue of $2.25 billion, exceeding $1.710 million. Nevertheless, Franklin Resources experienced a net outflow of $50 billion, primarily by the Western asset management division. Analysts will be focusing on the rise in total sales and positive trends in the unfunded pipeline, which could improve future performance.
Both TD Cowen and Bofa securities have adjusted their Franklin Resources price target to $20. TD Cowen maintained a hold valuation, while Bofa Securities maintained an unperformance valuation. The company announced plans to cut it by 5% in early 2027, with a goal of saving $225 million.
Franklin Templeton, which manages over $32 billion in ETF and ETP assets, is responsible for market capitalizations in over 150 countries and serves clients in over 150 countries. The company continues to expand its digital assets offerings while maintaining a 45-year record of consistent dividend payments.