**Franklin Ethereum Trust Reports Initial Financial Performance**
The Franklin Ethereum Trust (EZET), a Delaware statutory trust offering a single series, the Franklin Ethereum ETF, has released its first annual report since commencing operations on July 23, 2024. The fund, designed to track the price of ether, reported net assets of $21.61 million as of March 31, 2025. This valuation reflects the fund's holdings of 11,780.2062 ether, valued at $1,836.58 per ether at the end of the reporting period, while the cost of the ether was $37.85 million.
The fund experienced a net decrease in net assets resulting from operations of $17.24 million. This figure includes a net realized loss on investment in ether of $0.99 million and a net change in unrealized depreciation on investment in ether of $16.24 million. The fund's NAV per share decreased from $26.21 at the start of operations to $13.94 at the end of the fiscal year, primarily due to a 46.80% decline in the price of ether during the period.
During the reporting period, the fund issued 1,750,000 shares in exchange for 13,300 ether and redeemed 300,000 shares in exchange for 2,279.7938 ether. The fund's primary recurring expense is the sponsor's fee, which is accrued daily at an annualized rate of 0.19% of the fund's net asset value. However, the sponsor waived the entire fee on the first $10 billion of the fund's assets from the start of operations until January 31, 2025, resulting in a net sponsor fee expense of $8,924 for the period.
Looking ahead, the fund's performance will continue to be closely tied to the price of ether, which is subject to volatility and regulatory uncertainties. The fund's structure as a grantor trust means that shareholders are treated as directly owning a pro rata share of the fund's assets, with income, gains, losses, and deductions flowing through to them. The sponsor will continue to monitor market conditions and regulatory developments to ensure the fund operates in compliance with applicable laws and regulations.
About Franklin Ethereum Trust
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