Franklin Templeton has introduced the Franklin Crypto Index ETF (EZPZ), a new exchange-traded fund that provides institutional investors with exposure to Bitcoin and Ethereum. The ETF, which tracks the CF Institutional Digital Asset Index, debuted on the Cboe BZX exchange, making it the second cryptocurrency index ETF to launch in the U.S. following Hashdex’s Nasdaq Crypto Index US ETF (NCIQ).
The fund is designed to expand over time, incorporating additional digital assets as they gain regulatory approval. As of its launch, Bitcoin (BTC) comprises approximately 87% of the index, while Ethereum (ETH) accounts for the remaining 13%, according to CF Benchmarks. Franklin Templeton positions the ETF as a cost-effective and regulated means for investors to gain diversified exposure to the two largest cryptocurrencies without the complexities of direct ownership.
A Shift in Regulatory Attitudes Toward Crypto ETFs
The approval of Franklin Templeton’s EZPZ ETF and Hashdex’s NCIQ ETF signals a notable shift in regulatory sentiment toward digital assets. The U.S. Securities and Exchange Commission (SEC) approved both ETFs in December 2024, reflecting an increasing openness to cryptocurrency-based financial products. This regulatory shift comes amid broader discussions about the role of digital assets in the U.S. economy, particularly following Donald Trump’s election victory and his administration’s stated ambition to establish the country as a leader in crypto innovation.
In addition to BTC and ETH-focused funds, asset managers have submitted filings for ETFs that include altcoins such as Solana (SOL), XRP, and Litecoin (LTC). Meanwhile, Grayscale has been pushing for SEC approval to convert its Digital Large Cap Fund—currently a private investment vehicle—into a publicly traded ETF. Bloomberg Intelligence analysts suggest that the increasing number of filings indicates growing institutional interest and a higher likelihood of regulatory approval for multi-asset cryptocurrency ETFs in the near future.
Competitive Landscape and Market Impact
Franklin Templeton’s move into the crypto ETF market places it in direct competition with leading asset managers such as BlackRock and Grayscale. While BlackRock’s iShares Bitcoin ETF (IBIT) dominates with over $56.6 billion in assets under management (AUM), Franklin Templeton’s crypto offerings have seen relatively modest adoption. The Franklin Bitcoin ETF (EZBC) currently manages $708 million, ranking ninth among 11 U.S.-based spot Bitcoin ETFs, while the Franklin Ethereum ETF (EZET) holds $34 million, placing it seventh among Ethereum-focused funds.
Despite lagging behind in market share, Franklin Templeton continues to expand its digital assets strategy.
The firm has a history of blockchain experimentation, including the launch of FOBXX, a tokenized money-market fund on Polygon and Stellar, in 2021. Roger Bayston, head of digital assets at Franklin Templeton, emphasized the long-term potential of blockchain-based investment vehicles, stating that “blockchains are emerging as important utilities for the current and future data economies.”
