Franklin Ethereum Trust Reports Significant Increase in Net Assets and NAV for December 31, 2024

Franklin Ethereum Trust has reported its financial results for the quarter ending December 31, 2024, revealing a significant increase in net assets and a notable rise in the net asset value (NAV) per share. The Trust's net assets reached approximately $41.8 million, with a NAV per share of $25.34, up from $19.98 at the beginning of the quarter. This increase of 26.83% is attributed to a corresponding rise in the price of ether, which appreciated from $2,628.44 to $3,333.60 during the same period. The Trust's operations commenced on July 23, 2024, and this quarter marks its first full reporting period.

In terms of operational performance, the Trust issued 250,000 shares in exchange for 1,900 ether and redeemed 150,000 shares for 1,140 ether during the quarter. The net realized and unrealized gains on investments in ether amounted to approximately $8.5 million, which includes a realized gain of $215,469 from ether sold for redemptions and an unrealized appreciation of $8.3 million. For the period from July 23, 2024, to December 31, 2024, the Trust reported a total net increase in net assets of approximately $1.5 million, driven by ether price movements and capital share transactions.

The Trust's financial structure remains straightforward, with its only recurring expense being the Sponsor's fee, which is set at an annualized rate of 0.19% of the net asset value. The Sponsor, Franklin Holdings, LLC, has agreed to assume ordinary fees and expenses incurred by the Fund, including administrative and marketing costs. Notably, the Sponsor waived its fee for the first $10 billion of the Fund's assets until January 31, 2025, which has contributed to the Fund's financial stability.

As of December 31, 2024, the Trust held 12,540 ether, valued at $41.8 million, representing 100% of its net assets. The Trust's investment strategy is passive, aiming to reflect the performance of ether's price without active management. The Trust is classified as an emerging growth company, allowing it to take advantage of certain reporting exemptions under the JOBS Act.

Looking ahead, the Trust's management remains optimistic about the potential for growth, contingent on the performance of ether and market conditions. However, they caution that actual results may differ from expectations due to various risks, including market volatility and regulatory changes. The Trust's ongoing evaluation of its financial position and market conditions will be crucial in navigating future developments.