Franklin Templeton Digital Holdings Trust 10-K Filed

TL;DR

FT Digital Holdings Trust 10-K shows 51.61% total return since Jan 11 launch. Crypto fund performance detailed.

AI Summary

Franklin Templeton Digital Holdings Trust filed its 10-K on July 1, 2024, reporting its operations from January 11, 2024, to March 31, 2024. The fund commenced operations on January 11, 2024, and reported a total return of 51.61% based on net asset values for transactions with Authorized Participants. The filing details financial highlights and net asset value per share at the commencement of operations.

Why It Matters

This filing provides crucial financial performance data for the Franklin Templeton Digital Holdings Trust, offering insights into its initial performance in the digital asset space for investors and market observers.

Risk Assessment

Risk Level: high — The fund operates in the volatile digital asset market, which carries inherent risks and significant price fluctuations.

Key Numbers

• 51.61% — Total Return (Based on net asset values calculated for transactions with Authorized Participants from January 11, 2024, to March 31, 2024.)
• January 11, 2024 — Commencement of Operations (The date the Fund's operations began.)

Key Players & Entities

• Franklin Templeton Digital Holdings Trust (company) — Filer of the 10-K
• January 11, 2024 (date) — Commencement of operations date
• March 31, 2024 (date) — End of reporting period
• 51.61% (dollar_amount) — Total return based on NAV for Authorized Participant transactions

FAQ

Key Financial Figures

• $1.235 billion — rust has total annual gross revenues of $1.235 billion or more; the last day of the fiscal y
• $1 billion — ous three-year period, issued more than $1 billion in non-convertible debt; or the date
• $700 million — (i.e., an issuer that (1) has more than $700 million in outstanding equity held by non-affil
• $500,000 — fees, license fees and expenses, up to $500,000 per annum in ordinary legal fees and ex
• $10.0 billion — t asset value of the Fund for the first $10.0 billion of the Fund's assets. Prior to the impl
• $21 — Fund accrued the Sponsor fee of 0.29% ($21). In the future, if the Sponsor decides

Filing Documents

• d772184d10k.htm (10-K) — 1113KB
• d772184dex311.htm (EX-31.1) — 11KB
• d772184dex312.htm (EX-31.2) — 11KB
• d772184dex321.htm (EX-32.1) — 5KB
• d772184dex322.htm (EX-32.2) — 5KB
• d772184dex971.htm (EX-97.1) — 17KB
• g772184g0621095013392.jpg (GRAPHIC) — 24KB
• 0001193125-24-173040.txt ( ) — 4158KB
• ezbc-20240331.xsd (EX-101.SCH) — 30KB
• ezbc-20240331_cal.xml (EX-101.CAL) — 13KB
• ezbc-20240331_def.xml (EX-101.DEF) — 167KB
• ezbc-20240331_lab.xml (EX-101.LAB) — 156KB
• ezbc-20240331_pre.xml (EX-101.PRE) — 196KB
• d772184d10k_htm.xml (XML) — 477KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual report on Form 10-K includes statements which relate to future events or future performance. In some cases, you can identify such forward-looking statements by terminology such as "may," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in this report that address activities, events or developments that may occur in the future, including such matters as changes in commodity prices and market conditions (for bitcoin and the Shares), the Fund's operations, the Sponsor's plans and references to the Fund's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed in this report, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. All of the forward-looking statements made in this report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if substantially realized, will result in the expected consequences to, or have the expected effects on, the Fund's operations or the value of the Shares. None of the Tru

Business

Item 1. Business 1 Description of the Trust 1 Description of the Shares 2 The Sponsor 10 The Trustee 10 The Bitcoin Custodian 11 The Cash Custodian 13 Authorized Participants 14

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 55

Cybersecurity

Item 1C. Cybersecurity 55

Properties

Item 2. Properties 56

Legal Proceedings

Item 3. Legal Proceedings 56

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 56 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 57

[Reserved]

Item 6. [Reserved] 57

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 58

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 62

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 62

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 62

Controls and Procedures

Item 9A. Controls and Procedures 62

Other Information

Item 9B. Other Information 63

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 63 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 64

Executive Compensation

Item 11. Executive Compensation 64

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 64

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 64

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 64 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 66

Form 10-K Summary

Item 16. Form 10-K Summary 67 Table of Contents PART I

Business

Item 1. Business DESCRIPTION OF THE TRUST The Franklin Templeton Digital Holdings Trust (the "Trust") was formed as a Delaware statutory trust on September 6, 2023, and is governed by the provisions of an Agreement and Declaration of Trust dated as of January 5, 2024. The Trust currently offers a single series, the Franklin Bitcoin ETF (the "Fund"). The Fund issues common units of beneficial interest ("Shares"), which represent units of fractional undivided beneficial interest in and ownership of the Fund. The Shares are listed on the Cboe BZX Exchange, Inc. ("Cboe BZX Exchange" or the "Exchange") under the symbol "EZBC." Shares are not obligations of, and are not guaranteed by, the Sponsor or any of its subsidiaries or affiliates. The Fund seeks to reflect generally the performance of the price of bitcoin. The Fund seeks to reflect such performance before payment of the Fund's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding, and trading bitcoin directly on a peer-to-peer or other basis or via a digital asset exchange. The Bank of New York Mellon ("BNYM") serves as the Fund's Administrator, Marketing Agent, Transfer Agent, and the Cash Custodian. The bitcoin Custodian is Coinbase Custody Trust Company, LLC ("Coinbase Custody"). CSC Delaware Trust Company, a subsidiary of the Corporation Service Company (the "Trustee"), is the sole trustee of the Trust. Coinbase Inc., an affiliate of Coinbase Custody, serves as the prime broker ("Prime Broker"). Franklin Distributors, LLC is the marketing agent of the Fund (the "Marketing Agent"). The Fund is not managed like a corporation or an active investment vehicle. The Trust and the Fund do not have any officers, directors, or employees. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act") and is not required to

View Full Filing

View this 10-K filing on SEC EDGAR