EZET allows investors to gain exposure to ether
within a regulated exchange-traded product structure
Please replace the release issued July 23, 2024, at 09:30 a.m.
ET with the following corrected version due to multiple
revisions.
The updated release reads:
FRANKLIN TEMPLETON LAUNCHES FRANKLIN
ETHEREUM ETF (EZET)
EZET allows investors to gain exposure to ether
within a regulated exchange-traded product structure
Franklin Templeton today launched its second digital
asset-backed exchange-traded product (ETP), the Franklin Ethereum
ETF, under the ticker EZET. It is offered on the Cboe BZX Exchange,
Inc. and priced at 0.19%, or 19 basis points. Franklin Templeton
has agreed to fully waive fees to 0.00% until January 31, 2025, for
the first $10.0 billion in fund assets. The fund is a spot ether
(ETH) ETP available for U.S. investors and seeks to reflect the
performance of the price of ether, less the expense of fund
operations. EZET is the latest offering on the growing Franklin
Templeton Digital Assets and ETF platforms.
“After the success of our spot bitcoin ETP (EZBC) launch in
January, we are proud to add EZET to our growing lineup of digital
asset ETPs,” 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 U.S. ETF and ETP
platform provides solutions for a range of market conditions and
investment objectives through active, smart beta and passively
managed products. Franklin Templeton offers over 100 ETFs and ETPs
globally with combined assets under management (AUM) of over $27
billion as of June 30, 2024.
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 California-based company has over 75 years of investment
experience and over $1.6 trillion in assets under management as of
June 30, 2024. For more information, please visit
franklintempleton.com and follow us on LinkedIn, X and
Facebook.
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 U.S. exist in a state of
regulatory uncertainty, and adverse legislative or regulatory
developments could significantly harm the value of ether or the
Shares, such as by banning, restricting or imposing onerous
conditions or prohibitions on the use of ether, validation
activity, digital wallets, the provision of services related to
trading and custodying ether, the operation of the Ethereum
network, or the digital asset markets generally.
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.
Copyright © 2024. Franklin Templeton. All rights reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20240723311571/en/
Franklin Templeton Corporate Communications: Travis Fishstein,
(917) 822-1857, travis.fishstein@franklintempleton.com
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