Franklin Templeton has launched the Franklin Crypto Index ETF (EZPZ), which provides exposure to the price movements of bitcoin and ether. The firm will waive EZPZ’s 0.19% sponsor fee for investors until Aug. 31.
“The rapid growth of our ETF business reflects our unwavering commitment to staying at the forefront of innovation,” David Mann, global head of ETF Product and Capital Markets at Franklin Templeton, said Thursday.
“EZPZ offers a convenient and low-cost way to gain exposure to the two most established and largest blockchain ecosystems,” he added. “In the longer-term, the ETP intends to add any new coins as they become eligible for index inclusion. It is our hope this ETP evolves to represent beta for crypto.”
The passive fund seeks to track the CF Institutional Digital Asset Index, which comprises the largest digital assets that comply with the regulations and standards for major financial jurisdictions and capital markets. The index weights by market capitalization and is currently about 82% to bitcoin and 18% to ether. It is managed with secure custody by Coinbase, a digital asset custodian.
The new ETF is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940, nor is it subject to protections afforded by the Commodity Exchange Act, Franklin Templeton said.
EZPZ is the firm’s third digital asset exchange-traded product launch in just over a year.
“Franklin Templeton is making investing in a low cost portfolio of crypto EZPZ,” Roger Bayston, head of digital assets at Franklin Templeton, said. “Blockchains are emerging as important utilities for the current and future information and data economies. These networks are being developed to solve real-world problems and unlock new possibilities. With EZPZ, we’re offering a simple low-cost way to gain exposure to this growing and important asset class.”
Franklin Templeton has $1.58 trillion in assets under management. Its ETF and ETP platform, with over $32 billion in assets under management, offers over 100 ETFs across all asset classes.
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