10-Q - Franklin Ethereum Trust (0002011535) (Filer)

Tue, Nov 12, 7:53 PM (61 days ago)

The Franklin Ethereum Trust (ticker: EZET) reported its first quarterly results for the period ending September 30, 2024, following its launch on July 23, 2024. The Trust's net asset value (NAV) per share decreased from $26.21 to $19.98, reflecting a 23.77% decline in the price of ether, which fell from $3,448.77 to $2,628.44. The Trust's total assets amounted to $30,963,023, primarily invested in ether (11,780 units valued at $30,963,023), with no liabilities recorded. For the quarter, the Fund incurred a net decrease in net assets of $6,971,976, driven by a net change in unrealized losses of $6,777,145 and a realized loss of $194,831 from ether transactions. The Sponsor waived its fee of $10,129, resulting in no net investment loss for the period. The Fund's operations are characterized by a concentration risk due to its sole investment in ether, exposing it to significant price volatility. Looking ahead, the Trust remains classified as an emerging growth company, allowing it to benefit from reduced reporting requirements. Future operations may be impacted by market conditions and regulatory developments in the digital asset space.