Franklin Templeton Files For New Crypto Index ETF Offering Bitcoin And Ether Exposure

Franklin Templeton, one of the first companies to issue a spot Bitcoin exchange-traded fund (ETF) in the United States, is pushing deeper into digital assets with a new ETF designed as a diversified crypto portfolio.

Franklin Templeton submitted an S-1 registration statement to the US Securities and Exchange Commission (SEC) for a crypto index ETF, under the ticker EZPZ, that will track the performance of the CF Institutional Digital Asset Index.

Franklin Templeton’s Crypto ETF Awaits SEC Nod

According to the Aug. 16 filing, EZPZ would initially hold Bitcoin (BTC) and Ethereum (ETH).

“The Fund will seek to achieve its investment objective by investing in the Digital Assets in approximately the same weights as they represent in the Underlying Index,” Franklin Templeton said, adding that the combined index fund may hold additional types of cryptocurrencies in the future, subject to all the necessary approvals.

Franklin Templeton seeks to offer investors a diversified entry into the world of digital assets while benefiting from the company’s recognized institutional backing. The filing noted that the Chicago Board Options Exchange (CBOE) is now awaiting regulatory approval to permit the in-kind creation and redemption of shares using cryptocurrencies.

America’s largest crypto exchange, Coinbase, would serve as the custodian for Franklin’s proposed fund. Coinbase already custodies digital assets for other top fund managers that have introduced crypto ETFs on Wall Street. Bank of New York Mellon will manage cash holdings and act as the fund’s administrator and transfer agent.

It’s worth noting that Franklin Templeton is an early player in the market for crypto index ETFs, which are emerging as the next sector of focus for crypto ETF providers after the successful launch of spot BTC and Ether ETFs earlier this year.

Franklin’s product will compete with the Hashdex Nasdaq Crypto Index US ETF, which was the first dual Bitcoin and Ethereum ETF to seek regulatory clearance in June. Earlier this month, however, the SEC announced that it would need more time to decide if Hashdex’s proposed ETF can be listed on the Nasdaq exchange.

The latest filing comes as Franklin Templeton has started eyeing Solana as the next spot crypto ETF offering.