The launch of the Franklin Crypto Index ETF (EZPZ) has marked a transformative development in the world of digital asset investing. As one of the first multi-asset cryptocurrency exchange-traded funds approved in the U.S., EZPZ offers a streamlined, secure, and regulated way for investors to gain exposure to Bitcoin and Ethereum—the two dominant players in the crypto market. Backed by Franklin Templeton, a global financial powerhouse with over $1.58 trillion in assets under management, this ETF represents a major step forward in bridging traditional finance with the rapidly evolving crypto economy.
Understanding the Franklin Crypto Index ETF (EZPZ)
The Franklin Crypto Index ETF is designed to track the performance of the CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum. This focused approach allows investors to access the most liquid and widely adopted digital assets without the complexities of direct ownership, such as managing private keys or navigating cryptocurrency exchanges.
As the second crypto index ETF to launch in the U.S.—following Hashdex’s Nasdaq Crypto Index US ETF (NCIQ)—EZPZ reinforces growing institutional confidence in digital assets. By offering a regulated, exchange-listed product, it lowers the barrier to entry for both retail and institutional investors who seek diversified exposure to cryptocurrencies.
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Asset Allocation: 87% Bitcoin, 13% Ethereum
The ETF’s current allocation reflects the market dominance of its underlying assets: approximately 87% Bitcoin and 13% Ethereum. This market capitalization-weighted structure ensures that the fund dynamically adjusts to shifts in market value, maintaining alignment with real-time market conditions.
This weighting strategy provides a balanced yet concentrated exposure to the most established cryptocurrencies. Bitcoin continues to serve as digital gold—a store of value—while Ethereum powers decentralized applications and smart contracts, making it a cornerstone of Web3 innovation.
Franklin Templeton has indicated that additional cryptocurrencies may be added in the future, subject to regulatory approval and eligibility criteria. Such expansion would enhance diversification and allow the fund to evolve alongside the maturing digital asset ecosystem.
Secure Custody Through Coinbase
Security is a top concern for investors entering the crypto space. To address this, Franklin Templeton has partnered with Coinbase, one of the most trusted names in digital asset custody. Coinbase’s institutional-grade security infrastructure ensures that all assets backing the ETF are held safely, reducing counterparty risk and enhancing investor confidence.
This custodial arrangement adheres to strict compliance standards, further solidifying EZPZ as a credible option within regulated financial markets.
Competitive Fee Structure With Temporary Waiver
Cost efficiency is a critical factor in long-term investment success. The Franklin Crypto Index ETF features a sponsor fee of just 0.19%, already among the lowest in the crypto ETF space. Even more compelling, this fee is waived until August 31, 2025, or until the fund reaches $10 billion in assets under management, whichever comes first.
This strategic waiver incentivizes early adoption and helps accelerate asset accumulation, positioning EZPZ as an attractive, low-cost gateway to cryptocurrency exposure.
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How EZPZ Compares to Other Crypto Index ETFs
While EZPZ shares similarities with other crypto index funds, its differentiation lies in its simplicity and focus. Here's how it compares:
- Franklin Crypto Index ETF (EZPZ): Tracks Bitcoin and Ethereum only, using a market-cap-weighted methodology. Ideal for investors seeking exposure to proven leaders.
- Hashdex Nasdaq Crypto Index US ETF (NCIQ): Offers broader diversification by including multiple eligible cryptocurrencies beyond just BTC and ETH.
This contrast allows investors to choose based on their risk appetite and diversification goals. Those preferring concentrated exposure to top-tier assets may lean toward EZPZ, while others seeking wider diversification might consider alternatives.
Regulatory Milestone: SEC Approval and Market Acceptance
The approval of multi-asset crypto ETFs like EZPZ signals a pivotal shift in the U.S. regulatory landscape. The Securities and Exchange Commission (SEC) has demonstrated increasing openness to digital asset products, particularly those with robust custody solutions, transparent indexing methodologies, and strong sponsor oversight.
This regulatory green light underscores the legitimacy of cryptocurrencies as investable assets and paves the way for broader financial integration. Franklin Templeton’s successful navigation of this complex environment highlights its leadership in launching compliant, investor-friendly crypto products.
Future Expansion: Beyond Bitcoin and Ethereum
Although currently focused on Bitcoin and Ethereum, Franklin Templeton has expressed clear intentions to expand the index as new digital assets meet eligibility requirements. Potential candidates could include high-market-cap, liquid tokens with strong regulatory clarity—such as Solana, Cardano, or Polkadot—though no official roadmap has been released.
Such future enhancements would allow the ETF to remain adaptive and responsive to market evolution, ensuring continued relevance in a fast-changing industry.
Benefits for Institutional and Retail Investors
Crypto ETFs like EZPZ deliver significant advantages across investor segments:
- Institutional Investors: Gain compliant access to digital assets through familiar brokerage accounts, avoiding operational hurdles related to self-custody and regulatory uncertainty.
- Retail Investors: Access crypto markets with ease, safety, and transparency—no need to manage wallets, seed phrases, or exchange accounts.
Moreover, trading on traditional stock exchanges enables seamless integration into existing portfolios, with real-time pricing and settlement in USD.
Market-Cap Weighting: A Transparent Approach
The use of a market capitalization-weighted index ensures that larger, more established cryptocurrencies have proportionally greater influence on the fund’s performance. This methodology is widely accepted across traditional finance for its objectivity and simplicity.
By aligning with market dynamics, EZPZ avoids arbitrary selections and instead reflects actual investor sentiment and adoption trends across the crypto economy.
Franklin Templeton’s Broader Digital Asset Strategy
The launch of EZPZ is not an isolated move—it’s part of Franklin Templeton’s comprehensive push into digital assets. The firm has already launched standalone ETFs for Bitcoin (valued at $743.7 million) and **Ethereum** (valued at $33.9 million), demonstrating its commitment to building a full suite of crypto investment solutions.
With decades of experience in asset management and ETF innovation, Franklin Templeton brings credibility, scale, and regulatory rigor to the crypto space—qualities that are essential for mainstream adoption.
Frequently Asked Questions (FAQ)
Q: What is the Franklin Crypto Index ETF (EZPZ)?
A: EZPZ is an exchange-traded fund that provides investors with exposure to Bitcoin and Ethereum through a regulated, SEC-approved product without requiring direct ownership of crypto assets.
Q: How does EZPZ differ from single-asset crypto ETFs?
A: Unlike Bitcoin-only or Ethereum-only ETFs, EZPZ offers diversified exposure to both major cryptocurrencies in a single fund, combining growth potential with risk mitigation.
Q: Is the management fee really waived?
A: Yes—the 0.19% sponsor fee is fully waived until August 31, 2025, or until the fund reaches $10 billion in assets, whichever occurs first.
Q: Can non-U.S. investors buy EZPZ?
A: Availability depends on local regulations. Some digital asset products may not be offered in certain jurisdictions due to compliance restrictions.
Q: How is investor security ensured?
A: All underlying crypto assets are custodied by Coinbase, a leading regulated custodian with advanced security protocols and insurance coverage.
Q: Will more cryptocurrencies be added to the ETF?
A: Franklin Templeton has signaled plans to expand the index when regulatory and eligibility conditions are met, though no specific timeline or list has been announced.
The Franklin Crypto Index ETF (EZPZ) stands at the forefront of a new era in digital finance. By combining trusted asset management expertise with secure infrastructure and favorable pricing, it offers a compelling pathway for investors to participate in the growth of Bitcoin and Ethereum—all within a regulated framework.
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