Franklin Crypto Index 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, an exchange-traded fund (ETF) designed to track the CF Institutional Digital Asset Index – US–Settlement Price (the Underlying Index).
The fund will initially hold only bitcoin and ether, with Coinbase Custody Trust Company LLC serving as the custodian for digital assets and the Bank of New York Mellon acting as the cash custodian, administrator, and transfer agent. The filing states:
The fund currently may not hold any digital asset other than bitcoin and ether. It is uncertain whether any digital assets other than bitcoin and ether may in the future be added to the Underlying Index.
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 Franklin Crypto Trust, a Delaware statutory trust sponsored by Franklin Holdings LLC, an affiliate of Franklin Templeton, will issue shares of the ETF, which will be listed on the Cboe BZX Exchange under the ticker symbol “EZPZ.”
Regulatory approval for the Franklin Crypto Index ETF has been under review since Sept. 19, 2024, when Cboe BZX Exchange filed a proposed rule change with the SEC. 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 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.
Franklin Resources Inc., the parent company of Franklin Templeton, has already provided an initial investment of $100,000, purchasing 4,000 shares at $25 each as part of the fund’s seed capital. This investment was later converted into bitcoin and ether in preparation for the ETF’s public launch. The Franklin Crypto Index ETF aims to offer a regulated and cost-effective means for investors to gain exposure to digital assets while tracking the performance of the Underlying Index. However, the SEC has not yet approved the registration statement, and the ETF will only begin trading once the regulatory review process is complete. “These securities may not be sold until the registration statement filed with the SEC is effective,” the prospectus warns, underscoring that the offering remains subject to approval.
