Franklin Templeton’s Crypto ETF Awaits SEC Approval, Plans to Trade on Cboe BZX Exchange

Franklin Templeton filed Amendment No. 2 to its Form S-1 Registration Statement with the U.S. Securities and Exchange Commission (SEC) on Feb. 6 for the Franklin Crypto Index ETF

Franklin Templeton’s crypto ETF is set to offer institutional investors regulated exposure to bitcoin and ether, pending SEC approval.

The Franklin Crypto Index ETF will trade on the Cboe BZX Exchange under the ticker symbol EZPZ. It will be linked to the CF Institutional Digital Asset Index – US-Settlement Price, tracking the performance of bitcoin and ether. Notably, the fund will not initially hold any digital assets other than BTC and ETH.

The latest development in the crypto ETF saga is Franklin Templeton’s unveiling of its crypto exchange-traded fund (ETF) on Monday. The ETF will trade on the Cboe BZX Exchange under the ticker symbol EZPZ.

This development marks a significant step in the broader effort to introduce crypto ETFs in the United States. The Securities and Exchange Commission (SEC) has yet to approve any spot crypto ETFs, despite several applications from asset managers.

However, the regulatory body has cleared several ETFs linked to crypto futures contracts. These futures-based ETFs have seen strong demand from investors seeking exposure to digital assets within the traditional financial system.

Institutions to Gain Access to Bitcoin, Ether via Franklin Crypto ETF

The Franklin Crypto Trust, a Delaware statutory trust sponsored by Franklin Holdings LLC, an affiliate of Franklin Templeton, will issue shares of the ETF. The fund will be listed on the Cboe BZX Exchange under the ticker symbol “EZPZ.”

According to the filing, the fund will begin with only bitcoin and ether in its holdings. Coinbase Custody Trust Company LLC will serve as the custodian for digital assets, while the Bank of New York Mellon will担任现金保管人、管理人和过户代理。

The filing states that the fund currently may not hold any digital asset other than bitcoin and ether and that it is uncertain whether any digital assets besides BTC and ETH may be added to the Underlying Index in the future.

The original Form S-1 was filed on Aug. 16, 2024. The latest amendment includes additional details on the fund's structure and regulatory progress.

The ETF will issue shares in Creation Units of 50,000 shares, with authorized participants transacting in cash. The fund will not engage in staking or other yield-generating activities with its digital asset holdings.

The SEC has been reviewing the proposal for the Franklin Crypto Index ETF since Cboe BZX Exchange filed a proposed rule change with the Commission on Sept. 19, 2024.

The proposal was published for public comment in the Federal Register on Oct. 8, 2024. On Nov. 20, 2024, the SEC extended its review period to allow more time for a decision.

An amendment to the proposal was filed by the Exchange on Dec. 17, 2024, and the SEC subsequently requested public comments on Dec. 18, 2024.

The ETF will begin trading on the exchange once the SEC completes its review and approves the registration statement.

“These securities may not be sold until the registration statement filed with the SEC is effective,” the prospectus states, highlighting that the offering is subject to regulatory approval.

The Franklin Crypto Index ETF is designed to provide a cost-effective and regulated way for investors to gain exposure to digital assets, tracking the performance of the Underlying Index.