Franklin Templeton Launches Franklin Ethereum ETF (EZET)
Franklin Templeton has launched the Franklin Ethereum ETF (EZET) on the Cboe BZX Exchange, offering U.S. investors exposure to ether within a regulated ETF structure. EZET is priced at 0.19%, with fees fully waived to 0.00% until January 31, 2025, for the first $10 billion in fund assets. This spot ether ETF aims to reflect the performance of ether's price, less operational expenses.
The launch follows the success of Franklin Templeton's spot bitcoin ETF (EZBC) in January. The firm has been active in the digital asset space since 2018, developing blockchain-based solutions and investment strategies. Franklin Templeton's U.S. ETF platform, established in 2016, now offers over 100 ETFs globally with combined AUM exceeding $20 billion as of June 30, 2024.
Franklin Templeton ha lanciato il Franklin Ethereum ETF (EZET) sulla Cboe BZX Exchange, offrendo agli investitori statunitensi esposizione all'ether all'interno di una struttura ETF regolamentata. EZET è fissato a 0,19%, con commissioni completamente azzerate allo 0,00% fino al 31 gennaio 2025, per i primi 10 miliardi di dollari in asset del fondo. Questo ETF sull'ether mira a riflettere le performance del prezzo dell'ether, al netto delle spese operative.
Il lancio segue il successo dell'ETF su bitcoin di Franklin Templeton (EZBC) avvenuto a gennaio. L'azienda è attiva nel settore degli asset digitali dal 2018, sviluppando soluzioni basate su blockchain e strategie di investimento. La piattaforma ETF di Franklin Templeton negli Stati Uniti, istituita nel 2016, ora offre oltre 100 ETF a livello globale con un patrimonio in gestione combinato che supera i 20 miliardi di dollari, a partire dal 30 giugno 2024.
Franklin Templeton ha lanzado el Franklin Ethereum ETF (EZET) en la Cboe BZX Exchange, ofreciendo a los inversores estadounidenses exposición al ether dentro de una estructura ETF regulada. EZET tiene un precio de 0.19%, con comisiones completamente exentas hasta el 0.00% hasta el 31 de enero de 2025, para los primeros 10 mil millones de dólares en activos del fondo. Este ETF sobre ether busca reflejar el rendimiento del precio del ether, menos los gastos operativos.
El lanzamiento sigue el éxito del ETF de bitcoin de Franklin Templeton (EZBC) en enero. La firma ha estado activa en el espacio de activos digitales desde 2018, desarrollando soluciones basadas en blockchain y estrategias de inversión. La plataforma de ETF de Franklin Templeton en EE. UU., establecida en 2016, ahora ofrece más de 100 ETF a nivel mundial con un patrimonio administrado combinado que supera los 20 mil millones de dólares a partir del 30 de junio de 2024.
프랭클린 템플턴은 Cboe BZX 거래소에서 프랭클린 이더리움 ETF (EZET)를 출시하여 미국 투자자에게 규제된 ETF 구조 내에서 이더에 대한 노출을 제공합니다. EZET의 수수료는 0.19%로 설정되어 있으며, 2025년 1월 31일까지 첫 100억 달러의 펀드 자산에 대해 전액 면제된 0.00%입니다. 이 현물 이더 ETF는 운영 비용을 제외한 이더 가격의 성과를 반영하는 것을 목표로 합니다.
출시는 1월에 프랭클린 템플턴의 현물 비트코인 ETF (EZBC)의 성공에 이어 이루어졌습니다. 이 회사는 2018년부터 디지털 자산 분야에서 활동하고 있으며, 블록체인 기반 솔루션과 투자 전략을 개발하고 있습니다. 프랭클린 템플턴의 미국 ETF 플랫폼은 2016년에 설립되었으며, 현재 2024년 6월 30일 기준으로 200억 달러가 넘는 AUM을 보유한 100개 이상의 ETF를 전 세계에 제공합니다.
Franklin Templeton a lancé le Franklin Ethereum ETF (EZET) sur la Cboe BZX Exchange, offrant aux investisseurs américains une exposition à l'ether dans une structure ETF régulée. EZET est fixé à 0,19%, avec des frais entièrement annulés à 0,00% jusqu'au 31 janvier 2025, pour les premiers 10 milliards de dollars d'actifs du fonds. Cet ETF sur l'ether vise à refléter la performance du prix de l'ether, hors frais opérationnels.
Ce lancement fait suite au succès de l'ETF sur le bitcoin de Franklin Templeton (EZBC) en janvier. La société est active dans le domaine des actifs numériques depuis 2018, développant des solutions basées sur la blockchain et des stratégies d'investissement. La plateforme ETF de Franklin Templeton aux États-Unis, créée en 2016, propose maintenant plus de 100 ETF dans le monde entier, avec un actif sous gestion total dépassant 20 milliards de dollars au 30 juin 2024.
Franklin Templeton hat den Franklin Ethereum ETF (EZET) an der Cboe BZX Exchange aufgelegt, der US-Investoren eine regulierte ETF-Struktur für Ether bietet. EZET hat eine Gebühr von 0,19%, wobei die Gebühren bis zum 31. Januar 2025 für die ersten 10 Milliarden Dollar an Fondsvermögen vollständig auf 0,00% erlassen werden. Dieses Spot-Ether-ETF zielt darauf ab, die Preisentwicklung von Ether abzüglich der Betriebsaufwendungen widerzuspiegeln.
Die Einführung folgt dem Erfolg des Spot-Bitcoin-ETFs (EZBC) von Franklin Templeton im Januar. Das Unternehmen ist seit 2018 aktiv im Bereich digitaler Vermögenswerte tätig und entwickelt blockchain-basierte Lösungen und Anlagestrategien. Die US-ETF-Plattform von Franklin Templeton, die 2016 gegründet wurde, bietet mittlerweile mehr als 100 ETFs weltweit an, mit einem Gesamtvermögen von über 20 Milliarden Dollar zum 30. Juni 2024.
- Launch of Franklin Ethereum ETF (EZET) expands digital asset offerings
- Competitive pricing at 0.19% with fees waived to 0.00% until January 31, 2025, for first $10 billion in assets
- Franklin Templeton's ETF platform has over $20 billion in AUM across 100+ ETFs globally
- None.
Insights
The launch of the Franklin Ethereum ETF (EZET) is significant for investors looking to gain exposure to digital assets within a regulated framework. The ETF offers a unique opportunity to invest in ether (ETH) without needing to directly purchase and store the cryptocurrency. This development is important as it simplifies access to ETH, potentially attracting a broader range of investors, including those who are wary of the technical aspects and risks of holding digital coins directly.
Moreover, the decision to waive fees until January 31, 2025, is a strategic move to rapidly attract a substantial amount of assets under management (AUM). By eliminating fees for the first $10 billion in fund assets, Franklin Templeton is positioning EZET as a highly attractive option compared to other digital asset investment products that may carry higher costs. This aggressive pricing strategy is likely to boost initial investor interest and could lead to significant early inflows, enhancing the ETF's liquidity and market appeal.
Given the rising institutional interest in digital assets and the growing acceptance of blockchain technology, EZET's launch is timely. It aligns with the broader market trend of increasing institutional participation in the cryptocurrency space. Retail investors can also benefit from the reduced volatility and enhanced regulatory oversight that comes with investing through an ETF, compared to direct cryptocurrency investments.
The introduction of the Franklin Ethereum ETF (EZET) underscores the growing significance of blockchain technology and its mainstream adoption. Ethereum, the underlying asset of the ETF, is particularly notable for its role in enabling smart contracts and decentralized applications (dApps). These innovations have been pivotal in the evolution of Web3 and continue to drive significant interest in the technology sector.
From a technological standpoint, Ethereum's robust and versatile blockchain infrastructure makes it an attractive investment. The Ethereum Virtual Machine (EVM) facilitates the execution of decentralized smart contracts, which are self-executing contracts with the agreement terms directly written into code. This functionality has been instrumental in the proliferation of decentralized finance (DeFi) applications, non-fungible tokens (NFTs) and other blockchain-based innovations.
Investors in EZET are essentially betting on the continued growth and adoption of Ethereum's technology. As more developers build on Ethereum and as the network continues to upgrade and scale (e.g., Ethereum 2.0), the underlying value of ether is likely to appreciate. However, investors should be aware of the inherent risks associated with technology investments, including potential regulatory changes and the competitive landscape of blockchain platforms.
The launch of the Franklin Ethereum ETF (EZET) represents a strategic expansion in the digital asset investment landscape. Franklin Templeton's move to introduce this ETF following their successful spot bitcoin ETF (EZBC) highlights the firm's commitment to diversifying its digital asset offerings. This trend is reflective of the broader market's increasing acceptance and integration of cryptocurrencies into traditional financial products.
The ETF's accessibility on the Cboe BZX Exchange and the competitive pricing at 0.19% management fees, fully waived until January 2025, positions it as a highly attractive product. This fee structure is likely to draw significant interest from both retail and institutional investors looking for cost-effective entry points into the cryptocurrency market. The waiver period provides a window of opportunity for substantial AUM growth, potentially establishing EZET as a leading digital asset ETF by the time fees are reinstated.
In the long term, the success of EZET could catalyze further innovation and product development within the ETF space, encouraging other financial institutions to explore similar offerings. This could lead to increased market competition, potentially driving down costs and enhancing product features, ultimately benefiting investors. However, it's essential to monitor market dynamics and regulatory developments, as these factors could significantly impact the performance and attractiveness of digital asset ETFs.
EZET allows investors to gain exposure to ether within a regulated exchange-traded fund structure
“After the success of our spot bitcoin ETF (EZBC) launch in January, we are proud to add EZET to our growing lineup of digital asset ETFs,” said Patrick O’Connor, Head of Global ETFs for Franklin Templeton. “With EZET, we are thrilled to offer our clients additional access to the digital asset ecosystem within a regulated fund structure that integrates seamlessly into traditional portfolios.”
Since 2018, Franklin Templeton Digital Assets has been building blockchain-based technology solutions, running node validators, and developing a wide range of investment strategies. The firm’s dedicated digital assets research team leverages fundamental “tokenomic” analysis, insights from an embedded data science team and deep industry connections to help inform product development and investment decisions.
“We have been active participants and builders in the digital asset ecosystem since 2018 and have seen the transformative power of blockchain technology firsthand,” said Roger Bayston, Head of Digital Assets at Franklin Templeton. “Ethereum has been at the forefront of Web3 innovation with things like smart contracts and the Ethereum Virtual Machine and we're excited to bring that technology revolution to our clients.”
Established in 2016, Franklin Templeton’s
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the
The Fund has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Fund has filed with the SEC, when available, for more complete information about the Fund and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at sec.gov or by visiting franklintempleton.com.
All investments involve risks, including possible loss of principal. Before you invest, for more complete information about the Fund and this offering, you should carefully read the Fund's prospectus.
The Fund is not an investment company registered under the Investment Company Act of 1940 (1940 Act), and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the 1940 Act. The Fund is not a commodity pool for purposes of the Commodity Exchange Act (CEA) and accordingly is not subject to the regulatory protections afforded by the CEA.
The Fund holds only ether and cash and is not suitable for all investors. The Fund is not a diversified investment and, therefore, is expected to be more volatile than other investments, such as an investment in a more broadly diversified portfolio. An investment in the Fund is not intended as a complete investment plan.
An investment in the Fund is subject to market risk with respect to the digital asset markets. The trading price of the ether held by the Fund may go up and down, sometimes rapidly or unpredictably. The value of the Fund’s Shares relates directly to the value of ether, which has been in the past, and may continue to be, highly volatile and subject to fluctuations due to a number of factors. Extreme volatility in the future, including substantial, sustained or rapid declines in the trading prices of ether, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.
Competitive pressures may negatively affect the ability of the Fund to garner substantial assets and achieve commercial success.
Digital assets represent a new and rapidly evolving industry, and the value of the Fund’s Shares depends on the acceptance of ether. Due to the relative unregulated nature and lack of transparency surrounding the operations of digital asset exchanges, which may experience fraud, manipulation, security failures or operational problems, as well as the wider ether market, the value of ether and, consequently, the value of the Shares may be adversely affected, causing losses to Shareholders.
Digital asset markets in the
The Index price used to calculate the value of the Fund’s ether has a limited performance history and may be volatile, adversely affecting the value of the Shares. Moreover, the Index Administrator could experience system failures or errors. Errors in the Index data, computations and/or construction may occur from time to time and may not be identified and/or corrected for a period of time or at all, which may have an adverse impact on the Fund and the Shareholders.
A temporary or permanent “fork” in the Ethereum blockchain could adversely affect the value of the Shares. The Fund does not have the ability or intention to hold any asset (including any crypto asset) other than ether and cash. Shareholders may not receive the benefits of any forks or “airdrops.” Forks or airdrops may result in extraordinary expenses borne by the Fund.
The Fund is a passive investment vehicle and is not actively managed, meaning it does not manage its portfolio to sell ether at times when its price is high, or acquire ether at low prices in the expectation of future price increases. Also, the Fund does not use any hedging techniques to attempt to reduce the risks of losses resulting from ether price decreases. The Fund is not a leveraged product and does not utilize leverage, derivatives or similar instruments or transactions. The Fund's Shares are not interests or obligations of the Fund's Sponsor or its affiliates, and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency.
The amount of ether represented by each Share will decrease over the life of the Fund due to the sales of ether necessary to pay the Sponsor’s Fee and other Fund expenses. Without increases in the price of ether sufficient to compensate for that decrease, the price of the Shares will also decline and you will lose money on your investment in Shares.
Security threats to the Fund’s account at the Ether Custodian or Prime Broker could result in the halting of Fund operations and a loss of Fund assets or damage to the reputation of the Fund, each of which could result in a reduction in the value of the Shares.
The Fund will not stake the ether it holds, so an investment in the Fund’s shares will not realize the economic benefits of staking.
If the process of creation and redemption of Creation Units encounters any unanticipated difficulties, the possibility for arbitrage transactions by Authorized Participants intended to keep the price of the Shares closely linked to the price of ether may not exist and, as a result, the price of the Shares may fall or otherwise diverge from NAV.
Franklin Distributors, LLC. Member FINRA, SIPC. Marketing agent for the Franklin Ethereum ETF.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
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Franklin Templeton Corporate Communications:
Travis Fishstein, (917) 822-1857, travis.fishstein@franklintempleton.com
Source: Franklin Templeton
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