Franklin Templeton Launches Bitcoin + Ethereum Spot ETF, Altcoin ETF Approval Chances Remain High

Asset management firm Franklin Templeton has launched a spot ETF that provides investors with exposure to both Bitcoin and Ethereum.

Today @FTI_US is following @hashdex in the launch of a dual Bitcoin & Ethereum ETF. Both will ultimately be crypto index ETFs as the SEC allows more digital assets in the ETF wrapper.$EZPZ from Franklin & $NCIQ from Hashdex are both trading in US now. https://t.co/W1u0qnYKUO pic.twitter.com/IfoYGcxMPJ

— James Seyffart (@JSeyff) February 20, 2025

The product is called the Franklin Crypto Index ETF (EZPZ), and is designed to invest in both BTC and ETH based on a market cap weighting. At current prices, this would mean an 82% allocation to Bitcoin and an 18% allocation to Ethereum. The cryptocurrency held by the fund is custodied by Coinbase. 

Notably, the fund might not be limited to just Bitcoin and Ethereum in the future, as Franklin Templeton could also include other crypto assets provided they secure the necessary regulatory approval. David Mann, the head of ETF product and capital markets at Franklin Templeton, commented: 

“EZPZ offers a convenient and low-cost way to gain exposure to the two most established and largest blockchain ecosystems. In the longer-term, the ETP intends to add any new coins as they become eligible for index inclusion. It is our hope this ETP evolves to represent beta for crypto.”

Products such as the Franklin Crypto Index ETF highlight the potential of cryptocurrency ETFs to drive capital inflows into the crypto market. Instead of having to directly purchase both BTC and ETH and ensuring their safe storage, investors can gain exposure to both crypto assets simply by buying shares in the ETF.

We will likely see multiple altcoin ETFs approved in 2025

ETFs such as the Franklin Crypto Index ETF will likely be able to add additional cryptocurrencies once the SEC approves ETFs tied to these assets. Currently, the most likely cryptocurrencies to receive ETFs are XRP, Solana, Litecoin and Dogecoin.

Bloomberg’s ETF analysts are giving the highest chance of approval in 2025 to Litecoin ETFs, giving this scenario a 90% chance. However, even XRP ETFs, which were assigned the lowest chance of approval among the analyzed coins, still have a relatively high 65% chance of being approved this year. 

NEW: @EricBalchunas and I took a look at the filings for spot crypto ETFs. We’re putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.

Here’s the table with the odds and some other details: pic.twitter.com/xaXaNXLb0M

— James Seyffart (@JSeyff) February 10, 2025