Franklin Templeton is evaluating the possibility of launching a cryptocurrency exchange-traded product (ETP) in Europe, a move that would further solidify traditional asset managers’ presence in the digital asset space. The $1.6 trillion asset manager, which already has a cryptocurrency-focused ETF franchise in the United States, is assessing market conditions and regulatory developments before making any firm commitments.
Despite a downturn in cryptocurrency prices—Bitcoin currently trades around $86,300, down 21% from its January high, and Ethereum has dropped to $1,900, a 54% decline from its December peak—interest in digital asset investments remains robust. The European cryptocurrency ETP market stands at $14.5 billion, significantly smaller than the U.S. market, which is valued at $110.4 billion, according to ETFGI data.
Fee Competition Heats Up in the Crypto ETP Market
Competition among bitcoin ETP issuers has intensified in recent months, leading to fee reductions aimed at attracting investors. BlackRock’s Bitcoin ETP launched with a total expense ratio (TER) of 0.25%, with a temporary fee waiver reducing it to 0.15% until the end of the year. In response, WisdomTree also lowered the fee on its own Bitcoin ETP to 0.15% for the remainder of the year.
Franklin Templeton has previously demonstrated interest in digital assets, having secured approval last year for Luxembourg’s first tokenized UCITS fund. The firm’s potential entry into the European crypto ETP market would mark another step in its expansion into blockchain-based investment products.
While no official timeline has been set, Franklin Templeton’s ongoing evaluation suggests that further traditional asset managers may continue to enter the crypto space as regulatory frameworks develop and institutional interest grows.
