Two newly launched cryptocurrency exchange-traded funds (ETF) holding a blend of Bitcoin (BTC) and Ether (ETH) have seen relatively modest inflows since debuting in recent days, according to data reviewed by Cointelegraph.
Franklin Crypto Index ETF (EZPZ), sponsored by asset manager Franklin Templeton, has drawn approximately $2.5 million in net assets since debuting on Feb. 20, according to Franklin Templeton’s website.
Meanwhile, asset manager Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) has garnered just over $1 million since launching on Feb. 14, according to Hashdex’s website.
By comparison, Franklin Templeton’s Franklin Bitcoin ETF (EZBC), a spot Bitcoin ETF, pulled roughly $50 million in net inflows on its first day after launching in January 2024, according to data from Statista.
Another ETF holding only Bitcoin, Bitwise Bitcoin ETF (BITB), pulled nearly $240 million on its first trading day, the data showed.
Single-asset spot Ether ETFs saw considerably weaker early interest from investors, clocking roughly $100 million in net inflows on July 23, the funds’ first day of trading.
Franklin Templeton launched a crypto index ETF on Feb. 20. Source: Franklin Templeton
Related: SEC simultaneously approves Hashdex, Franklin’s Bitcoin-Ether ETFs
Limited diversification
The two new ETFs are designed to track a diverse index of crypto assets, providing US investors with a one-stop-shop crypto portfolio.
Both funds track indexes that hold crypto in proportion to each token’s market capitalization and hence consist overwhelmingly of BTC, which has a market capitalization of approximately $1.9 trillion as of Feb. 21, according to data from Google Finance.
However, the funds’ utility is currently limited because they are only permitted to hold Bitcoin and Ether. Eventually, they both aspire to hold a diversified portfolio comprising numerous crypto assets, pending regulatory approval.
In October, NYSE Arca, a securities exchange, sought permission to list a Grayscale ETF holding a more diverse basket of spot cryptocurrencies.
The Grayscale Digital Large Cap Fund, which was created in 2018 but is not yet exchange-traded, holds a crypto index portfolio comprising Bitcoin, Ether, Solana (SOL) and XRP (XRP), among others.
The SEC has acknowledged a flurry of applications for new types of ETFs, including funds holding altcoins such as SOL and XRP. Analysts expect more types of crypto ETFs to be approved in 2025.
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