Franklin Templeton’s EZPZ ETF: A New Gateway to Bitcoin and Ethereum

Franklin Templeton has launched the Franklin Crypto Index ETF (EZPZ) on the Cboe BZX Exchange, offering investors a simplified way to gain exposure to Bitcoin and Ethereum.

• Franklin Templeton launches EZPZ ETF on Cboe BZX.
• 82% Bitcoin, 18% Ethereum exposure.
• 0.19% fee waived until August.
• Coinbase as custodian.

Franklin Templeton, traditionally a heavyweight in conventional finance, is expanding its presence in the crypto market with the launch of the Franklin Crypto Index ETF (EZPZ) on the Cboe BZX Exchange, a major U.S. stock exchange. This ETF, comprising 82% Bitcoin and 18% Ethereum, is designed to track the market capitalization of these two leading cryptocurrencies. For those new to the crypto space, market capitalization is the total market value of a cryptocurrency’s circulating supply.

David Mann, Franklin Templeton’s Global Head of ETF Product and Capital Markets, emphasizes the ETF’s simplicity:

EZPZ provides a simple and efficient way to invest in the largest blockchain ecosystems.

Indeed, the name itself suggests an easy entry into the often complex world of crypto investments.

The ETF boasts a sponsor fee of just 0.19%, which is waived until August, making it an attractive option for those looking to dip their toes into the crypto pool without breaking the bank. Coinbase, a well-known name in the crypto world, will act as the custodian, ensuring your digital assets are as secure as Fort Knox.

This launch follows the SEC’s approval of Franklin Templeton’s and Hashdex’s crypto index ETFs on December 19. This approval, granted on an “accelerated basis,” signifies a potential shift in regulatory attitudes towards crypto products, opening doors for more innovative financial instruments. It’s a clear signal that cryptocurrencies are increasingly seen as legitimate investment options, not just speculative assets.

Franklin Templeton’s journey into crypto investments isn’t new. They previously launched the EZBC spot Bitcoin ETF in January 2024, which has since attracted $443.8 million in net inflows with $692.2 million in assets under management (AUM). Their EZET spot Ethereum ETF, launched in July 2024, has drawn $37.6 million in inflows with $33 million in AUM. These figures underscore the growing mainstream interest in crypto investments.

Roger Bayston, Head of Digital Assets at Franklin Templeton, envisions a transformative role for blockchain:

Blockchain technology holds significant potential in shaping the future of finance and data economies.

Think of blockchain as the backbone of a new internet, where transactions and data are secure and transparent. It’s like the difference between sending a letter via snail mail and using instant messaging.

Even Bloomberg ETF analyst James Seyffart couldn’t resist praising the ticker:

EZPZ is a great ticker.

It’s catchy, memorable, and reflects the ETF’s promise of simplicity in a world that often feels overly complicated.

While the launch of EZPZ is a positive step towards mainstream crypto adoption, it’s important to consider potential risks and challenges. Some Bitcoin maximalists argue that mixing Bitcoin with other cryptocurrencies dilutes its unique value proposition. They believe that Bitcoin alone should be the focus of institutional investment due to its established security and decentralized nature. However, the reality is that Ethereum and other cryptocurrencies serve unique roles in the broader blockchain ecosystem, filling niches that Bitcoin may not.

The involvement of Coinbase as the custodian also raises questions about centralization within a supposedly decentralized space. While Coinbase adds credibility and security, it also centralizes control over the assets, which could be seen as contrary to the ethos of decentralization championed by many in the crypto community.

Despite these concerns, the launch of EZPZ and similar products reflects a broader trend of institutional adoption of cryptocurrency investments. Franklin Templeton’s strategic push into the crypto market aligns with this trend, signaling strong investor interest and broader mainstream acceptance of digital assets.

Key Takeaways and Questions

• What is the composition of the Franklin Crypto Index ETF (EZPZ)?

  The ETF is composed of 82% Bitcoin and 18% Ethereum, tracking their market capitalization.

• What is the sponsor fee for the EZPZ ETF, and is there any current promotion?

  The sponsor fee is 0.19%, and it is waived until August.

• Who serves as the custodian for the EZPZ ETF?

  Coinbase serves as the custodian, ensuring secure asset management.

• When did the SEC approve Franklin Templeton’s and Hashdex’s crypto index ETFs?

  The approval was granted on December 19.

• What are the net inflows and AUM for Franklin Templeton’s previous crypto ETFs, EZBC and EZET?

  EZBC has attracted $443.8 million in net inflows with $692.2 million in AUM, while EZET has $37.6 million in inflows and $33 million in AUM.

• Who commented on the EZPZ ticker and what did they say?

  James Seyffart, a Bloomberg ETF analyst, called the EZPZ ticker “a great ticker.”

• What potential does Franklin Templeton see in blockchain technology?

  Franklin Templeton sees significant potential in blockchain technology in shaping the future of finance and data economies, as highlighted by Roger Bayston.

• What are some concerns raised by Bitcoin maximalists about crypto ETFs like EZPZ?

  Bitcoin maximalists argue that including other cryptocurrencies dilutes Bitcoin’s unique value proposition and that centralization, such as through custodians like Coinbase, contradicts the ethos of decentralization.

The launch of EZPZ by Franklin Templeton is more than just another investment vehicle; it’s a sign of the evolving financial landscape. As traditional and digital assets continue to converge, the future of finance looks increasingly bright—or should we say, EZPZ?