Franklin Bitcoin ETF is a passive investment fund that provides exposure to bitcoin's market performance, operating as a non-managed vehicle with assets mainly in bitcoin and cash.

# Company Overview

## Company Name
Franklin Bitcoin ETF  
A Series of Franklin Templeton Digital Holdings Trust

## Business Description
Franklin Bitcoin ETF is a passive investment fund designed to provide investors with exposure to the price of bitcoin. It seeks to reflect the performance of bitcoin’s market value before expenses and liabilities. The ETF offers a cost-effective and convenient alternative to directly purchasing, holding, or trading bitcoin by allowing investors to buy shares listed on a public exchange.

## Key Operations
- **Investment Objective:** Mimic the performance of bitcoin prices, less expenses.
- **Assets Backing Shares:** Primarily held assets are bitcoin kept in custody by Coinbase Custody Trust and cash holdings.
- **Market Listing:** Shares are listed on the Cboe BZX Exchange under the ticker **EZBC**.
- **Share Details:** 8,700,000 outstanding shares as of June 3, 2025.
- **Market Cap:** As of September 30, 2024, the aggregate market value of non-affiliate held shares was approximately **$451 million**.
- **Customer Base & Users:** Exact number of customers or investors is not specified.
- **Employees:** The Trust does not have officers, directors, or employees. It operates as a passive vehicle managed by service providers.
- **Revenue & Income:** The fund does not generate income or revenue as it is a passive, non-managed vehicle. Its main expenses are fees paid to service providers, notably a 0.19% annual fee to the Sponsor.

## Service Providers & Infrastructure
- **Sponsor:** Franklin Holdings, LLC, responsible for establishing and overseeing the fund.
- **Fund Administrator & Custodians:**
  - The Bank of New York Mellon (admin, transfer agent, cash custodian).
  - Coinbase Custody Trust (bitcoin custodian).
- **Prime Broker:** Coinbase Inc. facilitates trading and settlement.
- **Marketing Agent:** Franklin Distributors, LLC.
- **Authorized Participants:** 5 major broker-dealer firms capable of creating or redeem shares via authorized procedures.
- **Legal & Regulatory:** Not registered under the Investment Company Act. The fund does not hold or trade in commodity futures, nor is it a commodity pool.

## Asset Management & Operations
- **Investment Approach:** Passive, not actively managed or leveraged.
- **Bitcoin Custody:** Segregated in cold storage (offline hardware) with private keys stored securely.
- **Trading & Redeeming:** Creation and redemption only in units of 50,000 shares. Transactions involve bitcoin buying/selling, with the ETF conducting trades via third-party counterparties or through Coinbase Prime.
- **Expenses:** Only recurring expense is a 0.19% annual Sponsor fee; other costs are borne by service providers or the fund’s assets.
- **Tax Treatment:** Treated as a grantor trust for U.S. federal income tax purposes, with income passing through to shareholders.

## Risks & Industry Position
- Heavy reliance on third-party custodians, trading counterparties, and infrastructure.
- No management of bitcoin actively; exposure to bitcoin’s price volatility.
- Limited history of the fund’s operational performance.
- Market risks related to digital asset volatility, regulation, technological changes, and cybersecurity threats.

**Note:** Specific financial metrics such as revenue, net income, or detailed customer data are not provided in the document. The focus is on operational structure, management, and service arrangements for the ETF.

Franklin Templeton Digital Holdings Trust is a Delaware statutory trust that offers a passive investment vehicle for investors seeking exposure to bitcoin through its Franklin Bitcoin ETF.

# Franklin Templeton Digital Holdings Trust Overview

## Company Background

The **Franklin Templeton Digital Holdings Trust** (the “Trust”) was established as a **Delaware statutory trust** on **September 6, 2023**. It operates through its sole series, the **Franklin Bitcoin ETF** (the “Fund”), which is registered under the ticker symbol **EZBC** on the **Cboe BZX Exchange**. The Trust and Fund are sponsored by **Franklin Holdings, LLC**, a wholly-owned subsidiary of **Franklin Resources, Inc.**, which provides corporate oversight and direction. 

## Purpose and Operations

The Trust primarily focuses on providing investors with a means to gain exposure to bitcoin prices without the complexities of direct bitcoin purchases, custody, or trading. The Fund aims to reflect the performance of the price of bitcoin, adjusted for the fund's expenses and liabilities. 

### Key Features:
- **Investment Vehicle:** The Fund is a **passive investment vehicle**, not actively managed. It does not engage in speculation or leverage.
- **Creation and Redemption:** Shares of the Fund are created and redeemed only in **Creation Units** of **50,000 Shares**. Transactions are conducted exclusively in cash.
- **Asset Custodianship:** The Fund's bitcoin holdings are secured by **Coinbase Custody Trust Company, LLC**, ensuring safe custody of assets.

## Financial Information

### Shareholder Details
- As of **March 31, 2024**, the Trust has issued **8,350,000 Shares** resulting in a market value of approximately **$341.9 million** of held bitcoin.
- The NAV per Share commenced at **$26.65** on January 11, 2024, and increased to **$40.95** by March 31, 2024.

### Revenue and Expenses
- The Fund's only ordinary recurring expense is the **Sponsor's fee**, which is set at an annualized rate of **0.19%** of the daily net asset value.
- The Sponsor absorbs most operational costs, including fees for the Administrator, Marketing Agent, Bitcoin Custodian, and other associated expenses, up to **$500,000** per annum in ordinary legal fees.

## Customer Base and Employees

- **Customers:** The Fund primarily caters to investors looking to gain bitcoin exposure through traditional investment channels.
- **Employees:** The Trust does not have any direct employees or officers; operations are managed by the Sponsor's team.
  
### Sponsor Team
The management team responsible for the Trust includes:
- **David Mann** – President and CEO
- **Matthew Hinkle** – Chief Financial Officer
- **Vivek Pai** – Chief Accounting Officer and Treasurer
- **Todd Mathias** – Vice President
- **Navid Tofigh** – Vice President and Secretary
- **Julie Patel** – Vice President and Assistant Secretary
- **Ryan Wheeler**, **Ajay Narayan**, **Jeff White** – Assistant Treasurers

### Performance Metrics
- Total assets managed as of March 31, 2024: **4,842.9986 BTC**
- Total income change for the straightforward period was approximately **$61,220,174**, indicating the appreciation in bitcoin values and positive market conditions.

## Conclusion

The Franklin Templeton Digital Holdings Trust serves as a strategic financial vehicle aimed at simplifying access to bitcoin investments for a broad audience of potential shareholders, while managing operational risks through a well-defined structure of oversight and fiduciary responsibility.


Franklin Templeton Digital Holdings Trust

10-K / June 30, 2025

10-K / July 1, 2024

10-K / June 30, 2025

Company Overview

Company Name

Business Description

Key Operations

Service Providers & Infrastructure

Asset Management & Operations

Risks & Industry Position