EZBC 10-Q

EZBC 10-Q

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Franklin Templeton Digital Holdings Trust (EZBC)

10-Q 2024-11-12 For: 2024-09-30

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Added on April 10, 2026

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Delaware		93-6855785
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Shares of Franklin Bitcoin ETF	EZBC	Cboe BZX Exchange, Inc.


	Page
Part I. FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements of the Trust and the Fund		1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		26
Item 3. Quantitative and Qualitative Disclosure About Market Risk		29
Item 4. Controls and Procedures		29

Part II. OTHER INFORMATION

Item 1. Legal Proceedings		31
Item 1A. Risk Factors		31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		31
Item 3. Defaults Upon Senior Securities		31
Item 4. Mine Safety Disclosures		31
Item 5. Other Information		31
Item 6. Exhibits		31
SIGNATURES		33


	Page
Combined Statement of Assets and Liabilities at September 30, 2024 (Unaudited) and March 31, 2024 for Franklin Templeton Digital Holdings Trust		2
Combined Schedule of Investments at September 30, 2024 (Unaudited) and March 31, 2024 for Franklin Templeton Digital Holdings Trust		3
Combined Statement of Operations (Unaudited) for the three and six month periods ended September 30, 2024 for Franklin Templeton Digital Holdings Trust		4
Combined Statement of Cash Flows (Unaudited) for the six month period ended September 30, 2024 for Franklin Templeton Digital Holdings Trust		5
Combined Statement of Changes in Net Assets (Unaudited) for the three and six month periods ended September 30, 2024 for Franklin Templeton Digital Holdings Trust		6
Combined Notes to Financial Statements (Unaudited) for Franklin Templeton Digital Holdings Trust		7
Statement of Assets and Liabilities at September 30, 2024 (Unaudited) and March 31, 2024 for Franklin Bitcoin ETF		14
Schedule of Investments at September 30, 2024 (Unaudited) and March 31, 2024 for Franklin Bitcoin ETF		15
Statement of Operations (Unaudited) for the three and six month periods ended September 30, 2024 for Franklin Bitcoin ETF		16
Statement of Cash Flows (Unaudited) for the six month period ended September 30, 2024 for Franklin Bitcoin ETF		17
Statement of Changes in Net Assets (Unaudited) for the three and six month periods ended September 30, 2024 for Franklin Bitcoin ETF		18
Notes to Financial Statements (Unaudited) for Franklin Bitcoin ETF		19

Large Accelerated Filer

Accelerated Filer

Non-Accelerated
Filer

Smaller Reporting Company

Emerging Growth Company


	September 30, 2024		March 31, 2024
	(Unaudited)
Assets:
Investment in bitcoin, at fair value (a)	$	452,356,258	$	341,901,126

Total assets		452,356,258		341,901,126

Liabilities:
Sponsor’s fee payable		65,617		21

Total liabilities		65,617		21

Commitments and contingencies (Note 7)
Net assets	$	452,290,641	$	341,901,105

Shares issued and outstanding (b)		12,250,000		8,350,000
Net asset value per Share	$	36.92	$	40.95


	Quantity of bitcoin		Cost		Fair Value			% of Net Assets
Investment in bitcoin		7,103.8488	$	423,417,042	$	452,356,258			100.01	%

Total investments			$	423,417,042	$	452,356,258			100.01	%
Less liabilities						(65,617	)		(0.01	)%

Net assets					$	452,290,641			100.00	%


	For the Three Months Ended September 30, 2024*			For the Six Months Ended September 30, 2024*
Expenses:
Sponsor’s fee	$	192,723		$	368,406
Less waiver and reimbursement		(69,438	)		(245,121	)

Total expenses		123,285			123,285

Net investment loss		(123,285	)		(123,285	)

Net realized and change in unrealized gain (loss) on investment in bitcoin
Net realized gain (loss) from bitcoin sold for the redemption of shares and sold to pay expenses		(1,325,741	)		(1,156,994	)
Net change in unrealized appreciation (depreciation) on investment in bitcoin		4,121,057			(32,337,968	)

Net realized and change in unrealized appreciation (depreciation) on investment in bitcoin		2,795,316			(33,494,962	)

Net increase (decrease) in net assets resulting from operations		2,672,031			(33,618,247	)

Net increase (decrease) in net assets per Share (a)(b)	$	0.23		$	(3.18	)


	For the Six Months Ended September 30, 2024*
Cash Flows from Operating Activities
Net increase (decrease) in net assets resulting from operations	$	(33,618,247	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of bitcoin		(209,726,374	)
Sales of bitcoin		65,776,280
Net realized (gain) loss on investment in bitcoin		1,156,994
Net change in unrealized (appreciation) depreciation on investment in bitcoin		32,337,968
Change in operating assets and liabilities:
Sponsor’s fees payable		65,596

Net cash provided by (used in) operating activities	$	(144,007,783	)

Cash Flows from Financing Activities
Proceeds from issuance of Shares	$	209,726,374
Payments on Shares redeemed		(65,718,591	)

Net cash provided by (used in) financing activities	$	144,007,783

Cash
Net increase in cash	$	—
Cash, beginning of period		—

Cash, end of period	$	—


	For the Three Months Ended September 30, 2024*			For the Six Months Ended September 30, 2024*
Net assets, beginning of period	$	373,054,934		$	341,901,105
Net investment loss		(123,285	)		(123,285	)
Net realized gain (loss) on investment in bitcoin		(1,325,741	)		(1,156,994	)
Net change in unrealized appreciation (depreciation) on investment in bitcoin		4,121,057			(32,337,968	)

Net increase (decrease) in net assets resulting from operations		2,672,031			(33,618,247	)

Increase (decrease) in net assets from capital share transactions:
Contributions for Shares issued		107,983,445			209,726,374
Distributions for Shares redeemed		(31,419,769	)		(65,718,591	)

Net increase in net assets resulting from capital share transactions		76,563,676			144,007,783

Net assets, end of period	$	452,290,641		$	452,290,641


	Shares			Amount^
Balance at July 1, 2024		10,150,000		$	348,068,049
Creation of Shares		3,050,000			107,983,445
Redemption of Shares		(950,000	)		(31,419,769	)

Balance at September 30, 2024		12,250,000		$	424,631,725


	Shares			Amount^
Balance at April 1, 2024		8,350,000		$	280,623,942
Creation of Shares		5,850,000			209,726,374
Redemption of Shares		(1,950,000	)		(65,718,591	)

Balance at September 30, 2024		12,250,000		$	424,631,725


	Quantity in bitcoin			Amount in US$
Balance at July 1, 2024		5,886.9982		$	373,054,955
Bitcoin purchased for the creation of Shares		1,768.8331			107,983,297
Bitcoin sold for the redemption of Shares		(550.9655	)		(31,419,621	)
Principal on bitcoin sales to pay expenses		(1.0170	)		(57,689	)
Net realized gain (loss) from bitcoin sold for the redemption of shares		—			(1,325,741	)
Net change in unrealized appreciation (depreciation) on investment in bitcoin		—			4,121,057

Balance at September 30, 2024		7,103.8488		$	452,356,258


	For the Three Months Ended September 30, 2024*			For the Six Months Ended September 30, 2024*
Net asset value per Share, beginning of period	$	36.75		$	40.95

Net investment loss (a)		(0.01	)		(0.01	)
Net realized and unrealized gain (loss) on investment in bitcoin		0.18			(4.02	)

Net change in net assets from operations (b)		0.17			(4.03	)

Net asset value per Share, end of period	$	36.92		$	36.92

Total return, at net asset value (c)(d)		0.46	%		(9.84	)%
Ratio to average net assets (e)
Net investment loss		(0.12	)%		(0.06	)%
Gross expenses		0.19	%		0.19	%
Net expenses		0.12	%		0.06	%


Period	Total Shares Redeemed		Average Price Per Share
July 1, 2024 – July 31, 2024		—	$	—
August 1, 2024 – August 31, 2024		700,000		32.87
September 1, 2024 – September 30, 2024		250,000		33.63


Exhibit No.		Description of Exhibit

31.1(1)		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2(1)		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1(1)		Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S. C. 1350)

32.2(1)		Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S. C. 1350)

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema

101.CAL		XBRL Taxonomy Extension Calculation Linkbase

101.DEF		XBRL Taxonomy Extension Definition Linkbase

101.LAB		XBRL Taxonomy Extension Label Linkbase

101.PRE		XBRL Taxonomy Extension Presentation Linkbase


Sponsor of the Franklin Templeton Digital Holdings Trust (registrant)

By:		/s/ David Mann
		David Mann*
		President and Chief Executive Officer
		(serving in the capacity of principal executive officer)

By:		/s/ Matthew Hinkle
		Matthew Hinkle*
		Chief Financial Officer
		(serving in the capacity of principal financial officer)