The Franklin Crypto Index ETF (ticker: EZPZ) is an emerging exchange-traded fund designed for investors seeking exposure to the fast-growing digital asset market. Launched in February 2025, this passively managed ETF offers a streamlined, transparent, and cost-efficient way to invest in two of the most prominent cryptocurrencies: Bitcoin and Ethereum. As part of the broader Miscellaneous Digital Assets category, EZPZ tracks the CF Institutional Digital Asset TR USD index, aiming to replicate its performance before expenses.
With total assets under management of $4 million and a low expense ratio of just 0.19%, EZPZ stands out in a competitive landscape dominated by higher-cost alternatives. Its structure as a grantor trust ensures direct ownership of underlying assets, enhancing transparency for investors.
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Investment Objective and Strategy
The Franklin Crypto Index ETF seeks to deliver returns that closely correspond to the performance of the CF Institutional Digital Asset TR USD index. This benchmark includes only two digital assets: Bitcoin (BTC) and Ethereum (ETH), weighted according to their market representation within the index.
By maintaining a passive investment strategy, EZPZ avoids speculative trading and instead focuses on long-term exposure to these foundational cryptocurrencies. The fund achieves its objective by holding BTC and ETH directly in approximately the same proportions as they appear in the index—offering investors pure-play access without active management risks.
This approach aligns with growing demand for regulated, exchange-listed crypto exposure, particularly among institutional and retail investors wary of unregulated platforms or complex self-custody setups.
Portfolio Composition and Diversification
As of May 30, 2025, the ETF holds just two securities, reflecting its focused mandate:
- Bitcoin (BTC)
- Ethereum (ETH)
These two assets constitute 100% of the portfolio, with no allocation to equities, bonds, cash, or foreign securities. While this concentration may seem risky compared to traditional diversified funds, it's consistent with the fund’s goal of providing targeted digital asset exposure.
Notably:
- Top 10 holdings = 100.0% of assets
- Foreign issues: 0.0%
- Domestic stock allocation: 0.0%
- Bond allocation: 0.0%
- Cash position: 0.0%
Despite its narrow focus, EZPZ meets SEC requirements for diversification due to its structure as a grantor trust and compliance with regulatory guidelines.
Performance Highlights (as of May 31, 2025)
While long-term historical data is limited due to the ETF’s recent inception, short-term performance shows strong momentum:
| Period | NAV Return | Price Return | Category Average |
|---|---|---|---|
| 1-Month | +14.7% | +14.3% | +14.9% |
| 3-Month | +23.6% | +23.2% | +10.0% |
In May 2025 alone, EZPZ delivered a 14.7% NAV return, earning a "B" grade based on relative ranking within the digital assets category. Although slightly below the category average for the month, its 3-month return significantly outperformed peers, highlighting potential upside during bullish crypto cycles.
Longer-term returns (1-year, 3-year, 5-year) are currently listed as "na" due to insufficient track record—a common trait among newly launched ETFs.
Fees and Expenses
One of EZPZ’s most compelling features is its low expense ratio of 0.19%, significantly below the digital asset ETF category average of 1.08%. This cost efficiency enhances net returns over time, especially in volatile markets where every basis point counts.
Additional details:
- Dividend distribution: Annually (currently 0.00% yield)
- Capital gains distribution: Annually
- Portfolio turnover rate: 0% — indicating a buy-and-hold strategy that minimizes trading costs and tax implications
A zero turnover rate suggests minimal rebalancing, further reinforcing the fund’s passive nature and suitability for long-term investors.
Risk Profile and Market Volatility
Digital assets are inherently volatile, and EZPZ reflects that risk profile. While specific risk metrics like beta, standard deviation, and R-squared are not yet available due to the fund’s short history, investors should expect significant price swings aligned with broader crypto market trends.
The absence of ESG integration also means environmental, social, and governance factors are not considered in investment decisions—an important consideration for ethically focused investors.
However, being listed on a major exchange provides liquidity and regulatory oversight absent in direct crypto trading.
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Management Team and Fund Oversight
The ETF is managed by a single portfolio manager under Franklin’s team structure, with an average tenure of 0.3 years as of 2025. Given that EZPZ is a passively managed fund tracking a defined index, management experience plays a less critical role than in actively managed strategies.
Nonetheless, Franklin’s reputation as a global asset manager lends credibility to the fund’s operations and custodial practices.
Why Invest in Franklin Crypto Index ETF?
For investors seeking regulated exposure to Bitcoin and Ethereum without managing private keys or using cryptocurrency exchanges directly, EZPZ offers several advantages:
- Regulated access via traditional brokerage accounts
- Transparent holdings backed by real crypto assets
- Low fees compared to actively managed crypto funds
- Tax efficiency due to infrequent trading
- Direct indexing of institutional-grade digital assets
It serves as a bridge between traditional finance and decentralized digital economies.
Frequently Asked Questions (FAQ)
Q: What does EZPZ stand for?
A: EZPZ is the ticker symbol for the Franklin Crypto Index ETF. It does not stand for a specific phrase but is designed to be memorable and easy to recall.
Q: Does EZPZ pay dividends?
A: No. The fund has a trailing dividend yield of 0.00%. Any income generated from staking or other mechanisms is reinvested rather than distributed.
Q: How is EZPZ different from other crypto ETFs?
A: Unlike some crypto ETFs that use futures contracts or indirect exposure, EZPZ holds actual Bitcoin and Ethereum, offering direct asset backing through a grantor trust structure.
Q: Is EZPZ suitable for long-term investing?
A: Yes, especially for those who believe in the long-term value of Bitcoin and Ethereum. Its low expense ratio and passive strategy make it ideal for buy-and-hold investors.
Q: Can I trade EZPZ like a stock?
A: Absolutely. EZPZ trades on major exchanges during market hours, allowing investors to buy or sell shares through their brokerage accounts just like any other ETF.
Q: What are the main risks of investing in EZPZ?
A: The primary risks include high volatility linked to cryptocurrency prices, regulatory changes affecting digital assets, and limited performance history due to its recent launch.
Final Thoughts
The Franklin Crypto Index ETF (EZPZ) represents a modern solution for integrating digital assets into traditional investment portfolios. With its focus on Bitcoin and Ethereum, low fees, and transparent structure, it appeals to both novice and experienced investors navigating the evolving crypto landscape.
As adoption grows and regulatory clarity improves, products like EZPZ could play a pivotal role in mainstreaming crypto investing—offering security, simplicity, and scalability.
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