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SAN MATEO, Calif. - Investment management firm Franklin Templeton (BEN), with a market capitalization of nearly $11 billion and a robust InvestingPro Financial Health Score of 2.28 (FAIR), has introduced a new exchange-traded product (ETP), the Franklin Crypto Index ETF (EZPZ), designed to offer investors exposure to the price movements of bitcoin and ether. The ETP, which tracks the CF Institutional Digital Asset Index, is managed with secure custody by Coinbase (NASDAQ:COIN) and seeks to reflect the market capitalization of the two largest digital assets, currently weighted at approximately 82% bitcoin and 18% ether.
EZPZ represents Franklin Templeton’s latest effort to expand its digital asset offerings, following the launches of the Franklin Bitcoin ETF (EZBC) on January 11, 2024, and the Franklin Ethereum ETF (EZET) on July 23, 2024. The firm’s digital asset ETP suite underscores its commitment to providing modern investment solutions in the evolving digital asset space. The company maintains a strong financial position, with a current ratio of 5.36 and liquid assets exceeding short-term obligations, according to InvestingPro data.
The ETP’s sponsor fee of 0.19% is waived for investors until August 31, 2025, on the first $10.0 billion of the Fund’s assets, highlighting the company’s initiative to offer a low-cost investment vehicle. Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized the importance of blockchain technology and the firm’s intent to make investing in digital assets straightforward and cost-effective through EZPZ.
Franklin Templeton, with subsidiaries operating as Franklin Templeton, has a global presence, serving clients in over 150 countries. The company’s ETF and ETP platform boasts over $32 billion in assets under management (AUM) and more than 100 ETFs across various asset classes. The firm stands out with its 45-year track record of consistent dividend payments, currently offering a substantial 6.13% dividend yield. Franklin Templeton’s investment management expertise spans fixed income, equity, alternatives, and multi-asset solutions, generating annual revenue of $8.7 billion with a healthy 38% gross profit margin.
Investing in EZPZ does not represent a direct investment in bitcoin or ether but rather an ETP that invests in these digital assets. Potential investors are advised to carefully consider the risks involved, including market risk and the possibility of loss of principal, before investing. For deeper insights into Franklin Templeton’s financial health, valuation, and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 8 additional ProTips and extensive financial metrics.
The information for this article is based on a press release statement.
In other recent news, Franklin Resources (NYSE:BEN) reported strong first-quarter earnings, surpassing analyst expectations with an adjusted earnings per share of $0.59, higher than the anticipated $0.56. The company also achieved a revenue of $2.25 billion, significantly exceeding the consensus estimate of $1.71 billion. Despite a year-over-year decline in adjusted net income, Franklin Resources showed improvement in key growth areas, with positive net flows in equity, multi-asset, and alternatives totaling $17 billion. However, the company faced long-term net outflows of $50 billion, primarily due to Western Asset Management (WAMCO). Analysts from Evercore ISI noted that while the company experienced significant outflows at WAMCO, there were positive trends in higher gross sales and a solid unfunded pipeline.
Meanwhile, TD Cowen and BofA Securities both adjusted their price targets for Franklin Resources to $20. TD Cowen maintained a Hold rating, while BofA Securities kept an Underperform rating. Both firms cited updated earnings estimates and cost-saving measures as reasons for their revisions. Franklin Resources announced plans to reduce its total cost base by 5% by the first quarter of fiscal year 2027, aiming for $200-250 million in savings.
Additionally, Franklin Resources re-elected its board of directors and ratified PricewaterhouseCoopers LLP as its independent auditor during its recent annual stockholders meeting. These developments reflect ongoing efforts to maintain governance and operational oversight amidst recent challenges.
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