Franklin Templeton Expands Crypto Offering with New Bitcoin and Ethereum ETF
In a move to further diversify its digital asset offerings, financial services giant Franklin Templeton has recently launched a mixed Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded fund (ETF). This new fund, known as the Franklin Crypto Index ETF (EZPZ), marks the firm’s third foray into the world of crypto exchange-traded funds.
Coinbase, a leading cryptocurrency exchange, will provide custody services for the EZPZ ETF, adding an extra layer of security and trust for investors. This move follows Franklin Templeton’s successful launch of single-asset Bitcoin and Ethereum ETFs last year.
The EZPZ ETF will track the CF Institutional Digital Asset Index, a benchmark portfolio index that is currently weighted 86.51% in BTC and 13.49% in ETH. This index provides investors with exposure to the two largest and most established blockchain ecosystems in the market.
David Mann, the global head of ETF product and capital markets at Franklin Templeton, expressed his enthusiasm for the new ETF, highlighting its potential to evolve over time. Mann stated, “EZPZ offers a convenient and low-cost way to gain exposure to the two most established and largest blockchain ecosystems. In the longer term, the ETP intends to add any new coins as they become eligible for index inclusion. It is our hope this ETP evolves to represent beta for crypto.”
Franklin Templeton’s move follows a similar trend in the industry, with other firms like Hashdex launching joint BTC-ETH ETFs. Bloomberg ETF analyst James Seyffart predicts that these products will eventually become crypto index ETFs as regulatory bodies like the U.S. Securities and Exchange Commission allow more digital assets to be included in ETFs.
Overall, the launch of the Franklin Crypto Index ETF represents the firm’s commitment to innovation and providing investors with diverse opportunities in the rapidly evolving world of digital assets. As the crypto market continues to grow and mature, ETFs like EZPZ offer a convenient and regulated way for investors to participate in this exciting asset class.