Update as of January 12, 2024: Subsequent to the press release issued on January 11, 2024, the Sponsor Fee for EZBC was reduced from 0.29% to 0.19% and the Sponsor agreed to waive fees to 0.00% until August 2, 2024, for the first $10.0 billion in fund assets.
EZBC is one of the industry’s first spot bitcoin ETFs and the latest addition
to Franklin Templeton’s growing digital assets and ETF platforms
SAN MATEO, CA, January 11, 2024 – Franklin Templeton today
launched its first digital assets-backed exchange-traded fund (ETF), the
Franklin Bitcoin ETF, under the ticker EZBC. The fund is a spot bitcoin ETF available for U.S.
investors and seeks to reflect the performance of the price of bitcoin, less
the expense of fund operations. It is offered on the Cboe BZX Exchange, Inc.
and priced at 29 basis points. EZBC is the latest expansion of the growing
Franklin Templeton
Digital Assets
and
ETF
platforms.
“With more than 75 years in asset management, Franklin Templeton has learned
the importance of continuously innovating and staying ahead of the disruptive
technologies that impact our industry. That’s why we’ve been at the forefront
of merging blockchain technologies and traditional asset management, and we
are proud to add the Franklin Bitcoin ETF to our growing list of offerings,”
said Jenny Johnson, president and CEO of Franklin Templeton. “It’s all in the
ticker: EZBC. Our goal is to make it easy for clients to access investment
opportunities with our digital assets solutions.”
Franklin Templeton Digital Assets is a dedicated group of investment
professionals engaged in intensive research and technical development within
the digital asset ecosystem, developing investment offerings, technology
platforms and strategy differentiation to help clients achieve their
investment goals in this new asset class, all while supporting and investing
in digital asset networks.
“Investors continue to demonstrate interest in digital assets and express a
desire for a simpler way to allocate to the asset class—one that removes the
complexities associated with things like wallets and keys,” said Roger
Bayston, Head of Digital Assets at Franklin Templeton. “As a firm, we are well
positioned to leverage our in-depth knowledge of blockchain ecosystems to
introduce products like EZBC that serve to further the understanding and
accessibility of digital assets within the broader investing community.”
Established in 2016, Franklin Templeton’s U.S. ETF platform provides solutions
for a range of market conditions and investment objectives through active,
smart beta and passively managed ETFs. With the launch of EZBC and recent
acquisition of Putnam Investments, Franklin Templeton offers over 100 ETFs
globally with combined assets under management (AUM) of over $20 billion.1
“Franklin Templeton is committed to offering innovative products that meet
investors’ evolving interests and objectives. EZBC is our first ETF to include
the emerging opportunity set that is digital assets, making it a very exciting
addition to our product lineup,” said Patrick O’Connor, Head of Global ETFs
for Franklin Templeton. “With our bench strength in digital assets, as well as
our experience in offering a wide array of ETFs across equities, fixed income
and commodities, we are well equipped to expand into the new frontier of
digital asset ETFs.”
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 1,300 investment professionals, and offices in major
financial markets around the world, the California-based company has over 75
years of investment experience and approximately $1.5 trillion in assets under
management as of December 31, 2023. For more information, please visit
franklintempleton.com and
follow us on
LinkedIn,
Twitter and
Facebook.
1. ETF assets under management are on a pro forma basis as of December 31,
2023.
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. Alternatively, the Fund will arrange to send
you the prospectus if you request it by calling toll-free (800) DIAL
BEN/342-5236.
The prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any state where the offer is
not permitted.
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 bitcoin 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 bitcoin 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 bitcoins, 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 bitcoin, 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 bitcoin. Due
to the 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 bitcoin market, the
value of bitcoin 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 bitcoin or the Shares, such as by banning, restricting or
imposing onerous conditions or prohibitions on the use of bitcoins, mining
activity, digital wallets, the provision of services related to trading and
custodying bitcoin, the operation of the Bitcoin network, or the digital asset
markets generally.
The Index price used to calculate the value of the Fund’s bitcoin 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” could adversely affect the value of the
Shares. Shareholders may not receive the benefits of any forks or “airdrops.”
The Fund is a passive investment vehicle and is not actively
managed,
meaning it does not manage its portfolio to sell bitcoin at times when its
price is high, or acquire bitcoin 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 bitcoin 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 bitcoin represented by each Share will decrease over the life
of the Fund
due to the sales of bitcoin necessary to pay the Sponsor’s Fee and other Fund
expenses. Without increases in the price of bitcoin 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 Bitcoin
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. 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 bitcoin may not exist and, as a result, the price of the Shares may
fall or otherwise diverge from NAV.
Funds, ETFs, SMAs and institutional separate accounts offer different choices
to access professional investment management, but have important differences
including with respect to fees, ownership structure, investment minimums,
customization and tax efficiency. Account minimums and other requirements may
apply for separately managed accounts and institutional separate accounts.
ETFs trade like stocks, fluctuate in market value and may trade at prices
above or below their net asset value. Brokerage commissions and ETF expenses
will reduce returns. ETF shares may be bought or sold throughout the day at
their market price (MP), not their Net Asset Value (NAV), on the exchange on
which they are listed. Shares of ETFs are tradable on secondary markets and
may trade either at a premium or a discount to their NAV on the secondary
market.
Franklin Distributors, LLC. Member FINRA, SIPC.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
TN24-2
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