Key Points:
- Franklin Templeton has filed an S-1 application with the SEC to launch a crypto index ETF called “Franklin Crypto Index ETF”
- The proposed ETF aims to track the CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum
- The fund may incorporate additional cryptocurrencies in the future, depending on regulatory developments
- Coinbase Custody Trust Company will serve as the custodian for the fund’s digital assets
- The ETF would be listed on the Cboe BZX Exchange under the ticker “EZPZ”
Franklin Templeton, a global investment management firm, is making significant strides in the cryptocurrency investment space with two notable filings.
The company has submitted an S-1 application to the U.S. Securities and Exchange Commission (SEC) for a new crypto index exchange-traded fund (ETF) and has also updated its filing for an Ethereum-specific ETF.
The proposed “Franklin Crypto Index ETF” aims to offer investors exposure to the performance of Bitcoin and Ethereum through a regulated financial product.
According to the August 16 filing, the fund will track the CF Institutional Digital Asset Index, which currently includes only the two largest cryptocurrencies by market capitalization.
However, the company has left room for expansion, noting that additional cryptocurrencies may be incorporated in the future, subject to regulatory developments and market conditions.
If approved, the ETF will be listed on the Cboe BZX Exchange under the ticker symbol “EZPZ.” Coinbase Custody Trust Company has been selected to serve as the custodian for the fund’s digital assets, while Bank of New York Mellon will manage cash holdings and perform administrative duties.
This move comes amid rising demand for diversified cryptocurrency products and intensifying competition among asset managers to launch crypto ETFs. Other firms, including Hashdex and VanEck, have also filed for similar products, reflecting a broader trend of increasing institutional engagement with digital assets.
In a separate but related development, Franklin Templeton has also filed an updated S-1 form for its Ethereum ETF, disclosing a competitive management fee of 0.19%. This filing comes in response to the SEC’s call for ETF issuers to finalize their S-1 forms by a specific deadline. The regulator is expected to conduct a thorough review of these filings, with multiple drafting rounds anticipated.
The timing of these filings is significant, as it follows the SEC’s approval of spot Ethereum ETFs on May 23. Since then, several major financial institutions, including VanEck, BlackRock, and Fidelity, have been quick to submit their amended S-1 forms and secure ticker symbols for their Ethereum funds.
This flurry of activity signals a major step towards the launch of these financial products and indicates growing institutional interest in providing regulated access to cryptocurrency investments.
Franklin Templeton’s latest moves are part of its broader strategy to expand its offerings in the digital asset space. The firm already offers direct exposure to Bitcoin and Ethereum via spot ETFs launched earlier this year.
By introducing a crypto index ETF and a competitively priced Ethereum ETF, Franklin Templeton is positioning itself as a comprehensive provider of cryptocurrency investment products.
The introduction of these new ETFs could potentially lower the barrier to entry for investors interested in cryptocurrency exposure but hesitant to directly hold or manage digital assets.
By offering these products through traditional financial channels, Franklin Templeton is bridging the gap between the cryptocurrency market and conventional investment strategies.
