The Franklin Ethereum Trust, formed on February 8, 2024, launched its Franklin Ethereum ETF on July 23, 2024. As of September 30, 2024, the Trust reported total assets and net assets of $30,963,023, all of which are invested in ether. The Fund holds 11,780 ether, with a cost basis of $37,739,392, reflecting a significant unrealized depreciation of $(6,971,976) for the period from July 23, 2024, to September 30, 2024.
During this period, the Fund experienced a net decrease in net assets resulting from operations of $(6,971,976), translating to a net decrease per share of $(4.89). The net asset value (NAV) per share decreased from $26.21 at the beginning of operations to $19.98 by the end of the reporting period, marking a total return of -23.77%. The decline in NAV is attributed to a lower ether price and significant unrealized losses on the investment.
The Fund raised $36,336,503 through the issuance of 1,500,000 shares during the reporting period, while net cash used in operating activities was $(35,313,934). The Fund's only recurring expense is the Sponsor's fee, which is accrued daily at an annualized rate of 0.19% of the NAV. However, the Sponsor has agreed to waive this fee for the first $10 billion of assets until January 31, 2025. For the period, the Fund accrued a Sponsor's fee of $10,129, which was fully waived, resulting in no net fee payable.
The Fund's operations are administered by The Bank of New York Mellon, with Coinbase Custody Trust Company, LLC serving as the ether custodian. Shares of the Fund are traded on the Cboe BZX Exchange under the ticker symbol "EZET." As of September 30, 2024, 151,500 shares were held by a related party, Franklin Resources, Inc.
The Trust is classified as an "emerging growth company," allowing it to comply with reduced public company reporting requirements. The financial statements for the period ended September 30, 2024, are unaudited and reflect the Fund's operations since its inception. The Trust is classified as an investment company for accounting purposes but is not registered under the Investment Company Act of 1940.
About Franklin Ethereum Trust
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.