Mixed Bitcoin and Ether Crypto ETFs See Poor Inflows Post-Launch

Two newly launched cryptocurrency exchange-traded funds (ETFs) holding a combination of Bitcoin and Ether have seen modest inflows since their recent debuts, according to data from Cointelegraph. Franklin Templeton’s Franklin Crypto Index ETF (EZPZ) has attracted around $2.5 million in net assets since launching on Feb. 20, while Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) has gathered just over $1 million since its Feb. 14 debut. By comparison, Franklin Templeton’s spot Bitcoin ETF (EZBC) saw significantly higher interest, pulling in approximately $50 million on its first day in January 2024, with Bitwise Bitcoin ETF (BITB) reaching nearly $240 million on its debut. Diversification Limits and Regulatory Barriers The two ETFs aim to provide investors with exposure to a diverse crypto index. However, due to regulatory restrictions, they currently hold only Bitcoin and Ether, which dominate their portfolios. The hope is to expand to other cryptocurrencies pending regulatory approval. A broader ETF, the Grayscale Digital Large Cap Fund, already includes assets like Solana and XRP but has yet to be exchange-traded. The SEC continues to evaluate various applications, with analysts expecting more ETF approvals in 2025.