| Line Item | 2026-03-31 | Y/Y |
|---|---|---|
| Net Income | -$8.1M | — |
| Line Item | 2026-03-31 | Y/Y |
|---|---|---|
| Total Assets | $42.2M | +95.4% |
| Total Liabilities | $7K | -24.0% |
| Stockholders' Equity | $67.6M | +73.9% |
| Line Item | 2026-03-31 | Y/Y |
|---|---|---|
| Operating Cash Flow | -$28.7M | — |
| Financing Cash Flow | $28.7M | — |
Business Overview
The Franklin Ethereum Trust is a Delaware statutory trust formed in February 2024 that offers the Franklin Ethereum ETF (EZET), a passive investment vehicle designed to provide investors with convenient securities market exposure to ether through tradable shares backed by ether held in custody. The Fund operates as a simple pass-through structure with no active management, issuing and redeeming shares only in 50,000-share Creation Units to authorized participants in exchange for cash, while the Sponsor charges a 0.19% annual fee and assumes ordinary operating expenses.
Key Risk Factors
Key risks include: (1) reliance on third-party custodians (Coinbase Custody and BNY Mellon) and the Prime Broker to maintain and secure Fund assets, with portions held in trading accounts across multiple venues; (2) ether price volatility and the Fund's need to sell ether to pay the 0.19% annual Sponsor fee and other expenses, which creates ongoing dilution of share value and taxable events for shareholders; (3) dependence on the CF Benchmarks Index for NAV calculation, with discretionary Sponsor authority to fair value holdings if the Index becomes unavailable or unreliable; (4) operational and regulatory risks including potential Ethereum blockchain forks, extraordinary expenses not covered by the Sponsor, and the Sponsor's unilateral authority to terminate the Trust or Fund with only 30 days' notice; (5) concentration risk with limited liquidity providers and authorized participants, including conflicts of interest where Prime Broker affiliates also serve as authorized participants.