Investment Overview
The Franklin Crypto Index ETF (EZPZ) aims to deliver investment results that closely mirror the performance of its Underlying Index before accounting for expenses. This index is a free float-adjusted market capitalization-weighted benchmark comprising liquid digital assets compliant with major financial regulations, including those in the United States.
As of March 31, 2025, the index consists of:
- Bitcoin (BTC)
- Ether (ETH)
The fund achieves its objective by investing in these digital assets in proportions matching their index weights.
Key Considerations
- The fund is not registered under the Investment Company Act of 1940, meaning it lacks certain regulatory protections.
- It is not a commodity pool under the Commodity Exchange Act (CEA).
- Investors should review the prospectus for full details.
Fund Overview
Basic Details
| Attribute | Value |
|-------------------------|---------------------------|
| Inception Date | February 20, 2025 |
| Gross Sponsor Fee | 0.19% |
| Net Sponsor Fee | 0.00% (waived until 8/29/2025) |
| Asset Class | Alternatives |
| Exchange | Cboe (Ticker: EZPZ) |
| Custodian | Delaware Trust Company |
Holdings (as of March 31, 2025)
- Total Net Assets: $3.09 million
- Ether: 190.37 units
- Bitcoin: 33.06 units
Performance Metrics
Total Returns (%)
| Period | Market Price | NAV | Benchmark |
|----------|-------------|--------|-----------|
| Since Inception | -18.71 | -18.21 | -18.19 |
👉 Learn more about crypto ETF performance trends
Risks and Challenges
Market Volatility
- Digital assets are highly volatile and subject to rapid price swings.
- Regulatory uncertainty in the U.S. could impact asset values.
Operational Risks
- Forks or airdrops may lead to unexpected expenses.
- Security threats to custodial accounts could halt operations.
Structural Limitations
- The fund is passively managed and does not hedge against losses.
- Share value declines over time due to fee-related asset sales.
FAQs
1. Is the Franklin Crypto Index ETF a direct investment in Bitcoin or Ether?
No. It is an exchange-traded product that holds these assets indirectly.
2. What are the primary risks of investing in EZPZ?
- Price volatility of digital assets.
- Regulatory changes affecting crypto markets.
3. How does the fund handle forks or airdrops?
It does not participate in forks or airdrops, potentially missing out on benefits.
👉 Explore crypto investment strategies
Final Thoughts
The Franklin Crypto Index ETF offers exposure to Bitcoin and Ether through a regulated, albeit niche, financial product. While it provides a streamlined way to invest in crypto, its volatility and regulatory risks necessitate careful consideration.
For investors seeking diversification in digital assets, EZPZ represents a viable—though speculative—option. Always review the prospectus and consult a financial advisor before investing.