Franklin Templeton Launches Dual Spot Bitcoin and Ethereum ETF
Franklin Templeton introduced its new dual spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF) on Feb. 20, as announced in a press release. The fund, trading under the EZPZ ticker and listed on Cboe, tracks the dual price based on the CF Institutional Digital Asset Index.
Key Highlights of the ETF:
- The index is weighted by market capitalization, with 82% allocated to Bitcoin and 18% to Ethereum.
- As of Feb. 19, the fund holds 22.12 BTC and 123.55 ETH, custodied by Coinbase.
- This marks Franklin Templeton’s third crypto ETF, following the successful launches of the Franklin Bitcoin ETF (EZBC) and the Franklin Ethereum ETF (EZET) last year.
- Since their launches, EZBC and EZET have recorded $479.6 million in net flows as of Feb. 20, based on Farside Investors data.
Aiming for a Broad Index
David Mann, the global head of ETF product and capital markets at Franklin Templeton, expressed the following in a statement:
“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.”
Bloomberg ETF analyst James Seyffart stated that EZPZ is expected to evolve into a crypto index ETF as the US Securities and Exchange Commission (SEC) approves more digital assets in the ETF wrapper.
The SEC delayed the decision on Franklin Templeton and Hashdex’s funds on Nov. 20, 2024, but eventually approved both on Dec. 20, 2024, just three weeks before the informed deadline of Jan. 6, 2025.
Conclusion
In conclusion, Franklin Templeton’s new dual spot Bitcoin and Ethereum ETF provides investors with a unique opportunity to gain exposure to the leading blockchain ecosystems. As the crypto market continues to evolve, this ETF aims to adapt by adding new eligible coins to its index, positioning itself as a benchmark for the crypto industry.
