Franklin Templeton, a leading investment management company, has filed an S-1 with the US Securities and Exchange Commission (SEC) for a new crypto fund, dubbed EZPZ. The fund aims to track the CF Institutional Digital Asset Index, initially comprising Bitcoin (BTC) and Ethereum (ETH), with potential future additions of other cryptocurrencies.

A Growing Presence in the Crypto Market

Franklin Templeton’s move into the crypto space is not new, as the company has been actively exploring the market for some time. In August, the company integrated its OnChain US Government Money Market Fund (FOBXX) with Ethereum’s Arbitrum, marking its third platform integration following Stellar and Polygon. FOBXX has generated nearly $2 billion in traded value since its launch in 2021 and is a leader in utilizing public blockchains for transactions and fractional ownership.

A Diversified Crypto Fund

The EZPZ ETF seeks to provide investors with a diversified portfolio of cryptocurrencies, with Coinbase Custody Trust Company managing the fund’s digital assets and the Bank of New York Mellon handling cash and administrative responsibilities. The fund will be listed on the Cboe BZX Exchange and will enable in-kind creation and redemption of shares using digital assets.

A Growing Trend in Crypto Index ETFs

Franklin Templeton’s move is not an isolated incident, as other companies are also exploring the crypto index ETF space. In July, Hashdex announced its plans to pursue approval for a crypto index ETF focused on Bitcoin and Ethereum, utilizing the Nasdaq Crypto Settlement Price Index for price tracking.

A Different Approach to Crypto Investing

Franklin Templeton’s approach to crypto investing is distinct from other companies, such as BlackRock, which has reported that its clients are primarily interested in Bitcoin and Ethereum. Franklin Templeton, on the other hand, has been supportive of crypto funds beyond the usual suspects, with a focus on providing a diversified portfolio of cryptocurrencies.

Key Statistics:

• Franklin Templeton’s OnChain US Government Money Market Fund (FOBXX) has generated nearly $2 billion in traded value since its launch in 2021.
• FOBXX is a leader in utilizing public blockchains for transactions and fractional ownership.
• Franklin Templeton is the third-largest player in the tokenized government securities market, managing over $400 million in assets.
• The EZPZ ETF will be listed on the Cboe BZX Exchange and will enable in-kind creation and redemption of shares using digital assets.