Franklin Ethereum Trust 10-Q: Fund Launched, Ether Acquired
Ticker: EZET · Form: 10-Q · Filed: Nov 12, 2024 · CIK: 2011535
Sentiment: neutral
Topics: crypto, ethereum, fund-launch, seed-capital
Related Tickers: BEN
TL;DR
**Franklin Ethereum Trust is live! Seed investor bought 100k shares for 760 ETH on June 27th.**
AI Summary
Franklin Ethereum Trust filed its 10-Q for the period ending September 30, 2024. The fund commenced operations on July 23, 2024. Initially, Franklin Resources Inc. purchased 4,000 shares for $100,000 on May 21, 2024. These shares were later redeemed, and the Seed Capital Investor purchased 100,000 shares for 760 ether on June 27, 2024, which the fund used to acquire ether.
Why It Matters
This filing details the initial operational setup and seed capital transactions for the Franklin Ethereum Trust, providing insight into its early stages and investment in ether.
Risk Assessment
Risk Level: medium — The fund's operations commenced recently, and its primary asset is ether, which is subject to cryptocurrency market volatility.
Key Numbers
- $100,000 — Initial Seed Share Proceeds (Total proceeds from the initial sale of shares to the Seed Capital Investor.)
- 100,000 — Seed Creation Units Shares (Number of shares purchased by the Seed Capital Investor in a cash transaction for ether.)
- 760 ether — Ether Acquired (Amount of ether purchased by the fund using proceeds from the Seed Creation Units sale.)
Key Players & Entities
- Franklin Ethereum Trust (company) — Filer of the 10-Q
- Franklin Resources Inc. (company) — Seed Capital Investor and affiliate of the Sponsor
- July 23, 2024 (date) — Commencement date of fund operations
- May 21, 2024 (date) — Date of initial seed share purchase
- $100,000 (dollar_amount) — Proceeds from initial seed share sale
- June 27, 2024 (date) — Date of seed creation unit purchase and ether acquisition
- 760 ether (dollar_amount) — Amount of ether purchased by the fund
- 0002011535 (company) — Central Index Key for Franklin Ethereum Trust
FAQ
When did the Franklin Ethereum Trust commence operations?
The Fund's operations commenced on July 23, 2024.
Who was the initial Seed Capital Investor?
Franklin Resources Inc., an affiliate of the Sponsor, was the Seed Capital Investor.
What was the total value of the Initial Seed Shares purchased?
The total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000.
How many shares were purchased in the Seed Creation Units transaction?
The Seed Capital Investor purchased a total of 100,000 Shares in the Seed Creation Units transaction.
What did the fund use the proceeds from the Seed Creation Units for?
The cash proceeds were used by the Fund to purchase 760 ether on June 27, 2024.
Filing Stats: 4,713 words · 19 min read · ~16 pages · Grade level 13.8 · Accepted 2024-11-12 14:51:41
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
Filing Documents
- d899979d10q.htm (10-Q) — 584KB
- d899979dex311.htm (EX-31.1) — 10KB
- d899979dex312.htm (EX-31.2) — 10KB
- d899979dex321.htm (EX-32.1) — 4KB
- d899979dex322.htm (EX-32.2) — 4KB
- g899979g1104172404709.jpg (GRAPHIC) — 22KB
- 0001193125-24-255764.txt ( ) — 3460KB
- ezet-20240930.xsd (EX-101.SCH) — 31KB
- ezet-20240930_cal.xml (EX-101.CAL) — 14KB
- ezet-20240930_def.xml (EX-101.DEF) — 173KB
- ezet-20240930_lab.xml (EX-101.LAB) — 157KB
- ezet-20240930_pre.xml (EX-101.PRE) — 189KB
- d899979d10q_htm.xml (XML) — 540KB
FINANCIAL INFORMATION
Part I. FINANCIAL INFORMATION Page
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 31
Controls and Procedures
Item 4. Controls and Procedures 31
OTHER INFORMATION
Part II. OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 33
Risk Factors
Item 1A. Risk Factors 33
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 33
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 33
Other Information
Item 5. Other Information 33
Exhibit
Item 6. Exhibit 33
Signatures
Signatures 35 Table of Contents
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION
Unaudited Financial Statements of the Trust and Fund
Item 1. Unaudited Financial Statements of the Trust and Fund FRANKLIN ETHEREUM ETF FRANKLIN ETHEREUM TRUST INDEX TO UNAUDITED FINANCIAL STATEMENTS Page Combined Statement of Assets and Liabilities at September 30, 2024 (Unaudited) for Franklin Ethereum Trust 2 Combined Schedule of Investments at September 30, 2024 (Unaudited) for Franklin Ethereum Trust 3 Combined Statement of Operations (Unaudited) for the period from July 23, 2024 (Date of Commencement of operations) to September 30, 2024 for Franklin Ethereum Trust 4 Combined Statement of Cash Flows (Unaudited) for the period from July 23, 2024 (Date of Commencement of operations) to September 30, 2024 for Franklin Ethereum Trust 5 Combined Statement of Changes in Net Assets (Unaudited) for the period from July 23, 2024 (Date of Commencement of operations) to September 30, 2024 for Franklin Ethereum Trust 6 Combined Notes to Financial Statements (Unaudited) for Franklin Templeton Ethereum Trust 7 15 Schedule of Investments at September 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) September 30, 2024* Assets: Investment in ether, at fair value (a) $ 30,963,023 Total assets 30,963,023 Liabilities: Sponsor's fee payable — Total liabilities — Commitments and contingencies (Note 7) Net assets $ 30,963,023 Shares issued and outstanding (b) 1,550,000 Net asset value per Share $ 19.98 * No comparative period presented as the Fund's operations commenced on July 23, 2024. (a) Cost of investment in ether: $ 37,739,392 at September 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 INVESTMENTS September 30, 2024* (Unaudited) Quantity of ether Cost Fair Value % of Net Assets Investment in ether 11,780.0000 $ 37,739,392 $ 30,963,023 100.00 % Total investments 11,780.0000 $ 37,739,392 $ 30,963,023 100.00 % Less liabilities — — % Net assets $ 30,963,023 100.00 % * No comparative period presented as the Fund's operations commenced on July 23, 2024. See accompanying notes to the unaudited financial statements. 3 Table of Contents FRANKLIN ETHEREUM TRUST COMBINED STATEMENT OF OPERATIONS (Unaudited) For the period July 23, 2024 (Date of commencement of operations) through September 30, 2024* Expenses: Sponsor's fee $ 10,129 Less waiver and reimbursement ( 10,129 ) Net investment loss — Net realized and change in unrealized gain (loss) on investment in ether: Net realized gain (loss) on investment in ether ( 194,831 ) Net change in unrealized appreciation (depreciation) on investment in ether ( 6,777,145 ) Net realized and change in unrealized appreciation (depreciation) on investment in ether ( 6,971,976 ) Net increase (de