- Franklin Templeton has applied for SEC approval to launch a new Crypto Index ETF.
- The ETF will expose Bitcoin and Ether under the ticker symbol EZPZ.
- The fund will track spot prices and rebalance its holdings every quarter.
Franklin Templeton has applied for regulatory approval to launch the Franklin Crypto Index ETF, expanding its digital asset offerings. The fund will expose Bitcoin and Ether to a single investment vehicle listed on the Cboe BZX Exchange. Following Donald Trump’s election victory, the firm aims to capitalize on the growing demand for cryptocurrency investment products.
The latest filing represents the Second amendment to the firm’s S-1 registration statement for the ETF. Franklin Templeton seeks to include a broader range of digital assets in the future. However, any expansion of assets will require additional regulatory approvals before implementation.
If approved, the ETF will track the spot prices of Bitcoin and Ether, with each weighted according to market capitalization. As of February 5, Bitcoin comprised 86.31% of the index, while Ether accounted for 13.69%. The fund’s underlying index will be rebalanced quarterly in March, June, September, and December.
Franklin Templeton Plans to Expand Crypto ETF
Franklin Templeton has indicated that it may incorporate additional cryptocurrencies into its ETF. However, including new tokens depends on regulatory approvals for the ETF and the Cboe BZX Exchange. The company intends to keep its funds adaptable to evolving regulatory conditions in the cryptocurrency sector.
The firm acknowledged the risks associated with digital assets, particularly concerning blockchain network forks. A temporary or permanent fork could reduce asset values, affecting the ETF’s overall performance. Additionally, competition from emerging blockchain platforms such as Solana, Avalanche, and Cardano could weaken investor demand for Bitcoin and Ether.
Franklin Templeton remains optimistic about the ETF’s market potential despite these risks. The firm expects fund shares to be actively traded under the EZPZ ticker. However, it noted that market liquidity is not guaranteed, which could impact price stability.
Solana and XRP ETFs Await SEC Decision
The SEC has historically resisted cryptocurrency ETFs, citing investor protection concerns. However, regulatory sentiment shifted last year when the agency approved ETFs for Bitcoin and Ether. These approvals opened the door for broader institutional and retail participation in digital assets.
Several asset managers have submitted proposals for ETFs tied to other cryptocurrencies following this shift. Applications for Solana and XRP-based funds are under review, with potential approvals expanding the crypto ETF market. Investors are closely watching the SEC’s decisions, which could shape the future of cryptocurrency-based investment products.
Recently, Bitwise secured initial approval for its ETF tracking both Bitcoin and Ether. The SEC granted accelerated approval for NYSE Arca to list and trade the hybrid fund’s shares. This development highlights the growing acceptance of cryptocurrency ETFs in mainstream financial markets.