Franklin Templeton has introduced a new exchange-traded fund (ETF) that includes both spot Bitcoin and Ether, marking its entry as the second cryptocurrency index ETF available in the U.S. market. This offering, known as the Franklin Crypto Index ETF (ticker: EZPZ), comes shortly after Hashdex released its Nasdaq Crypto Index US ETF (ticker: NCIQ).
The Franklin Crypto Index ETF currently holds a range of assets represented in the U.S. CF Institutional Digital Asset Index, which, as of February 20, includes only Bitcoin and Ether. The composition of this market capitalization-weighted index is predominantly Bitcoin at approximately 87%, with Ether making up about 13%.
The investment strategy behind the EZPZ fund is to expand its asset holdings as more cryptocurrencies become eligible for inclusion in the index. This strategy intends to provide a comprehensive crypto portfolio solution for U.S. investors who prefer to avoid directly purchasing cryptocurrencies.
Franklin Templeton emphasizes that the ETF simplifies exposure to Bitcoin and Ether while outlining plans for including additional digital assets, subject to necessary regulatory clearances. Similarly, Hashdex’s NCIQ currently focuses on Bitcoin and Ether but plans to broaden its range in the future.
The recent approval of Franklin Templeton’s EZPZ and Hashdex’s NCIQ by the U.S. Securities and Exchange Commission reflects a changing regulatory landscape, one that has become more favorable following Donald Trump’s presidential tenure. In 2024, numerous asset managers submitted filings for ETFs that include altcoins such as Solana, XRP, and Litecoin.
The New York Stock Exchange Arca has also requested permission to list a Grayscale ETF, which maintains a diversified portfolio of spot cryptocurrencies. With financial analysts from Bloomberg Intelligence suggesting high approval prospects for upcoming crypto ETF filings, the market anticipates further developments in the regulatory environment and increased investment opportunities in the crypto space.
