Franklin Crypto Trust Reports Significant Decline in NAV and Investment Losses for Quarter Ending June 30, 2026

Franklin Crypto Trust has reported its financial results for the quarter ending June 30, 2026, revealing a significant decline in net asset value (NAV) per share and overall net assets compared to the previous fiscal period. The NAV per share decreased from $22.70 at the end of December 2025 to $14.67, reflecting a 35.37% drop over the six-month period. The total net assets of the Trust increased to approximately $11.73 million, up from $10.22 million at the end of December 2025, primarily due to capital share transactions amounting to $5.69 million, despite a net decrease in assets resulting from operations of approximately $4.17 million.

The Trust's financial performance was impacted by a net investment loss of $9,949 for the six months ended June 30, 2026, compared to a net investment income of $569,094 for the same period in the previous year. The net realized and unrealized losses on investments in digital assets totaled approximately $4.16 million, which included a net realized loss of $41,082 and a net change in unrealized depreciation of $4.12 million. This downturn was attributed to a decline in the underlying digital asset market, with the CF Institutional Digital Asset Index falling from 11,267.43 to 7,235.39 during the same period.

Operationally, the Trust saw an increase in shares issued, with 350,000 shares created during the six months, bringing the total shares outstanding to 800,000. The Trust's digital asset holdings included 155.44 bitcoin valued at $9.19 million, 806.82 ether valued at $1.29 million, and smaller amounts of other digital assets such as XRP, Solana, and Dogecoin. The Trust's investment strategy remains focused on tracking the performance of the CF Institutional Digital Asset Index, which includes major cryptocurrencies like Bitcoin and Ethereum.

Looking ahead, the Trust's management has indicated that the current market conditions present challenges, particularly with the volatility of digital asset prices. The Trust's future performance will depend on the recovery of the digital asset market and the effectiveness of its investment strategy. The Sponsor, Franklin Holdings, LLC, continues to manage the Trust's operations and has committed to covering ordinary expenses, including a Sponsor's fee of 0.19% of the net asset value, which was accrued at $5,401 for the quarter. The Trust remains vigilant in monitoring market conditions and adjusting its strategies accordingly.