Franklin Templeton, a prominent asset management firm, launched its spot Bitcoin and Ethereum exchange-traded fund (ETF) on the Cboe BZX Exchange. This new investment vehicle, named the Franklin Crypto Index ETF (EZPZ), offers investors exposure to the price movements of Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization.

The ETF's introduction follows the earlier launch of the Hashdex Nasdaq Crypto Index US ETF, marking a significant step in the availability of cryptocurrency investment products on regulated exchanges.

The EZPZ ETF allocates its holdings based on market capitalization, currently weighted 82% towards Bitcoin and 18% towards Ethereum. Franklin Templeton has indicated that the fund may expand to include additional cryptocurrencies in the future, pending regulatory approvals. To attract investors, the fund has set a sponsor fee of 0.19%, which will be waived until the end of August. Coinbase (NASDAQ: COIN ) has been appointed as the custodian for the fund.

David Mann, Franklin Templeton's Global Head of ETF Product and Capital Markets, expressed optimism about the new offering, stating, "EZPZ offers a convenient and low-cost way to gain exposure to the two most established and largest blockchain ecosystems." He also mentioned the possibility of the ETF evolving to include more cryptocurrencies as they become eligible for index inclusion, aiming to provide a comprehensive representation of the crypto market.

The launch of EZPZ is seen as a reflection of the increasing institutional interest in digital assets. The Securities and Exchange Commission (SEC) approved both Franklin Templeton's and Hashdex's ETFs on December 20, paving the way for these innovative products. Bloomberg ETF analyst James Seyffart commented on the growing trend of crypto index ETFs and praised the EZPZ ticker as "such a great ticker."

Roger Bayston, Franklin Templeton's Head of Digital Assets, highlighted the potential of blockchain technology and its role in the evolving information and data economies. He emphasized the convenience of investing in a diversified crypto portfolio through the EZPZ ETF.

Franklin Templeton's foray into digital asset ETFs began with the launch of the EZBC spot Bitcoin ETF in January 2024, followed by the EZET spot Ethereum ETF in July of the same year. The EZBC ETF has attracted significant interest, with $443.8 million in net inflows and $692.2 million in assets under management.

The EZET ETF has also seen positive investor reception, with $37.6 million in net inflows and a current $33 million AUM.

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