Franklin Ethereum Trust: Seed Capital & Ether Acquisition
Ticker: EZET · Form: 10-Q · Filed: Aug 14, 2024 · CIK: 2011535
Sentiment: neutral
Topics: crypto, ethereum, fund-launch, seed-capital
Related Tickers: BEN
TL;DR
**Franklin Ethereum Trust bought 760 ETH for $100K seed capital on June 27th. Fund launched May 21st.**
AI Summary
Franklin Ethereum Trust filed its 10-Q for the period ending June 30, 2024. The fund, which launched on May 21, 2024, received $100,000 from Franklin Resources Inc. for initial seed shares. These shares were later redeemed, and the seed investor purchased 100,000 shares for 760 ether, which the fund then used to acquire 760 ether at $3,446.37 per ether.
Why It Matters
This filing details the initial capital formation and the first significant ether acquisition for the Franklin Ethereum Trust, providing insight into its early operational steps.
Risk Assessment
Risk Level: medium — The fund is new and its performance is directly tied to the volatile price of Ethereum.
Key Numbers
- $100,000 — Seed Capital (Initial investment by Franklin Resources Inc. on May 21, 2024.)
- 760 ether — Ether Acquired (Amount of ether purchased by the fund on June 27, 2024.)
- $3,446.37 — Ether Purchase Price (Price per ether paid by the fund on June 27, 2024.)
- May 21, 2024 — Fund Inception (Date the Franklin Ethereum Trust was established.)
Key Players & Entities
- Franklin Ethereum Trust (company) — Filer of the 10-Q
- Franklin Resources Inc. (company) — Seed Capital Investor and affiliate of the Sponsor
- May 21, 2024 (date) — Fund inception date and delivery of Initial Seed Shares
- $100,000 (dollar_amount) — Total proceeds from the sale of Initial Seed Shares
- June 27, 2024 (date) — Date of redemption of Initial Seed Shares and purchase of Seed Creation Units
- 760 ether (dollar_amount) — Amount of ether purchased by the Fund
- $3,446.37 (dollar_amount) — Price per ether paid by the Fund
FAQ
When was the Franklin Ethereum Trust established?
The fund's inception date was May 21, 2024.
Who provided the initial seed capital for the fund?
Franklin Resources Inc., an affiliate of the Sponsor, provided the initial seed capital.
What was the initial amount invested by the seed capital investor?
The initial investment was $100,000 for 4,000 Shares.
How much ether did the fund acquire and at what price?
The fund acquired 760 ether at a price of $3,446.37 per ether on June 27, 2024.
Are there comparative financial periods presented in this 10-Q?
No, there is no comparative period presented as the fund's inception was May 21, 2024.
Filing Stats: 4,760 words · 19 min read · ~16 pages · Grade level 13.2 · Accepted 2024-08-14 16:55:13
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
- $100,000 — he sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Sha
Filing Documents
- d875366d10q.htm (10-Q) — 662KB
- d875366dex311.htm (EX-31.1) — 10KB
- d875366dex312.htm (EX-31.2) — 10KB
- d875366dex321.htm (EX-32.1) — 5KB
- d875366dex322.htm (EX-32.2) — 5KB
- g875366g52e94.jpg (GRAPHIC) — 72KB
- 0001193125-24-200706.txt ( ) — 3601KB
- ezet-20240630.xsd (EX-101.SCH) — 28KB
- ezet-20240630_cal.xml (EX-101.CAL) — 14KB
- ezet-20240630_def.xml (EX-101.DEF) — 172KB
- ezet-20240630_lab.xml (EX-101.LAB) — 146KB
- ezet-20240630_pre.xml (EX-101.PRE) — 187KB
- d875366d10q_htm.xml (XML) — 527KB
FINANCIAL INFORMATION
Part I. FINANCIAL INFORMATION
Unaudited Financial Statements of the Trust and the Fund
Item 1. Unaudited Financial Statements of the Trust and the Fund 1
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 30
Controls and Procedures
Item 4. Controls and Procedures 30
OTHER INFORMATION
Part II. OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 32
Risk Factors
Item 1A. Risk Factors 32
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 32
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 32
Other Information
Item 5. Other Information 32
Exhibit Index
Item 6. Exhibit Index 33
Signatures
Signatures 34 Table of Contents
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION Item1. Unaudited Financial Statements of the Trust and the Fund FRANKLIN ETHEREUM ETF FRANKLIN ETHEREUM TRUST INDEX TO UNAUDITED FINANCIAL STATEMENTS Page Combined Statement of Assets and Liabilities at June 30, 2024 (Unaudited) for Franklin Ethereum Trust 2 Combined Schedule of Investments at June 30, 2024 (Unaudited) for Franklin Ethereum Trust 3 Combined Statement of Operations (Unaudited) for the period from May 21, 2024 (Date of Inception) to June 30, 2024 for Franklin Ethereum Trust 4 Combined Statement of Cash Flows (Unaudited) for the period from May 21, 2024 (Date of Inception) to June 30, 2024 for Franklin Ethereum Trust 5 Combined Statement of Changes in Net Assets (Unaudited) for the period from May 21, 2024 (Date of Inception) to June 30, 2024 for Franklin Ethereum Trust 6 Combined Notes to Financial Statements (Unaudited) for Franklin Ethereum Trust 7 15 Schedule of Investments at June 30, 2024 (Unaudited) for Franklin Ethereum ETF 16 17 18 19
Notes to Financial Statements (Unaudited) for Franklin Ethereum ETF
Notes to Financial Statements (Unaudited) for Franklin Ethereum ETF 20 1 Table of Contents FRANKLIN ETHEREUM TRUST COMBINED STATEMENT OF ASSETS AND LIABILITIES (Unaudited) June 30, 2024* Assets: Investment in ether, at fair value (a) $ 2,655,676 Total assets 2,655,676 Liabilities: Total expenses payable — Total liabilities — Net assets $ 2,655,676 Shares issued and outstanding (b) 100,000 Net asset value per Share $ 26.56 * No comparative period presented as fund inception was May 21, 2024. (a) Cost of investment in ether: $ 2,620,289 at June 30, 2024 (b) No par value, unlimited amount authorized. See accompanying notes to the unaudited financial statements. 2 Table of Contents FRANKLIN ETHEREUM TRUST COMBINED SCHEDULE OF INV ESTMENTS June 30, 2024* (Unaudited) Quantity of ether Cost Fair Value % of Net Assets Investment in ether 760.0000 $ 2,620,289 $ 2,655,676 100.00 % Total investments $ 2,620,289 $ 2,655,676 100.00 % Liabilities in excess of other assets — — % Net assets $ 2,655,676 100.00 % * No comparative period presented as fund inception was May 21, 2024. See accompanying notes to the unaudited financial statements. 3 Table of Contents FRANKLIN ETHEREUM TRUST COMBINED STATEMENT OF OPERATIONS (Unaudited) For the period May 21, 2024 (Date of Inception) through June 30, 2024* Expenses: Total expenses $ — Less waiver and reimbursement — Net investment loss — Net realized and change in unrealized gain (loss) on investment in ether: Net realized gain (loss) on investment in ether — Net change in unrealized appreciation (depreciation) on investment in ether 35,387 Net realized and change in unrealized appreciation (depreciation) on investment in ether 35,387 Net increase (decrease) in net assets resulting from operations 35,387 Net increase (decrease) in net assets per Share (a) $ 0.35 (b) * No comparative period presented a