Franklin Templeton Digital Holdings Trust SEC 10-Q Report
Franklin Templeton Digital Holdings Trust, through its Franklin Bitcoin ETF, has released its Form 10-Q report for the quarter ended September 30, 2025. The report highlights significant financial and operational performance metrics, reflecting the company's focus on providing a cost-effective alternative to direct bitcoin investment through securities markets.
Financial Highlights
Net Asset Value per Share: The Net Asset Value (NAV) per share stood at $66.11, marking a 37.59% increase from $48.05 as of March 31, 2025. This increase is primarily attributed to a 37.69% rise in the price of bitcoin.
Net Increase in Net Assets Resulting from Operations: The company reported a net increase of $156.41 million for the six months ended September 30, 2025. This growth was driven by net realized and unrealized gains on bitcoin investments.
Net Realized and Change in Unrealized Gain on Investment in Bitcoin: The fund recorded gains of $156.95 million for the six months ended September 30, 2025, due to the appreciation of bitcoin prices from $82,956.00 per unit as of March 31, 2025, to $114,223.01 per unit as of September 30, 2025.
Sponsor's Fee: The Sponsor's fee for the six months ended September 30, 2025, was $533,982, which had a slight impact on the net asset value increase, less than the percentage increase in bitcoin prices.
Business Highlights
Fund Overview: The Franklin Bitcoin ETF, a series of the Franklin Templeton Digital Holdings Trust, aims to reflect the performance of bitcoin before expenses and liabilities. The ETF offers a cost-effective alternative to direct bitcoin investment by providing exposure through securities markets.
Operational Structure: The Fund operates as a passive investment vehicle, not actively managed, and issues shares only to Authorized Participants in blocks of 50,000 shares, known as Creation Units. These units are redeemable only by Authorized Participants in exchange for cash.
Bitcoin Holdings: As of September 30, 2025, the Fund held 5,789.9639 bitcoins, valued at $661,347,104, reflecting a significant increase from the previous period due to bitcoin price appreciation.
Share Transactions: During the three months ended September 30, 2025, the Fund issued 1,400,000 shares in exchange for 810.3845 bitcoins and redeemed 300,000 shares in exchange for 173.6506 bitcoins.
NAV Performance: The Fund's NAV per share increased by 5.17% from $62.86 at the beginning of the period to $66.11 at the end, primarily driven by a 5.22% increase in bitcoin prices.
Sponsor's Fee: The Fund's only ordinary recurring expense is the Sponsor's fee, accrued daily at an annualized rate of 0.19% of the Fund's NAV. For the quarter ended September 30, 2025, the accrued Sponsor's fee was $296,639.
Future Outlook: The Fund anticipates continued operations with a focus on maintaining its passive investment strategy, reflecting bitcoin's price performance while managing operational expenses through the Sponsor's fee structure.
SEC Filing: Franklin Templeton Digital Holdings Trust [ EZBC ] - 10-Q - Nov. 13, 2025