Recent news coverage highlights significant inflows into bitcoin ETFs following political events, discussions on the impact of spot bitcoin ETF approvals on market prices, and general interest in bitcoin ETF investment opportunities.

• Bitcoin ETFs experienced $10 billion in inflows following a political event, indicating strong investor interest in bitcoin-related investment products [N1].
• Discussions around spot bitcoin ETFs consider their potential to create significant wealth for investors, reflecting growing market attention [N2].
• Recent weekly ETF area analyses include bitcoin ETFs among the best-performing sectors, suggesting positive market sentiment [N3].
• Spot bitcoin ETF approvals have caused price declines in cryptocurrencies, highlighting market sensitivity to regulatory developments [N4].
• Eleven spot bitcoin ETFs debuted recently, providing investors with new options for bitcoin exposure through regulated securities [N5].

The Fund offers investors a straightforward and regulated vehicle to gain exposure to bitcoin price performance, leveraging the Sponsor's established infrastructure and custodial arrangements. Its passive management and cost structure provide a transparent and accessible alternative to direct bitcoin investment. The Fund benefits from growing investor interest in bitcoin ETFs, as evidenced by significant inflows into bitcoin ETFs reported in recent news. The Fund's use of a regulated benchmark index and established service providers supports operational integrity and investor trust.

The Fund's performance is directly tied to the volatile price of bitcoin, which has experienced significant fluctuations and may continue to do so, potentially leading to substantial losses. The Fund bears risks related to regulatory changes affecting digital assets and stablecoins, operational risks in bitcoin custody and trading, and market liquidity constraints. The Fund's reliance on third-party custodians and service providers introduces counterparty and operational risks. Additionally, the Fund's passive structure means it does not actively manage bitcoin holdings to mitigate market downturns.

The Fund's moat lies in its structure as a regulated, exchange-listed bitcoin ETF providing investors with convenient, secure, and cost-effective exposure to bitcoin price movements without the operational complexities of direct bitcoin ownership. The use of established custodians and administrators, a regulated benchmark index for NAV calculation, and the backing of Franklin Templeton as Sponsor contribute to investor confidence and operational reliability. The Fund's design to avoid leverage and active management reduces complexity and risk, appealing to investors seeking passive bitcoin exposure through traditional securities markets.

• Bitcoin Price Volatility: The Fund's net asset value and performance are highly sensitive to bitcoin price fluctuations, which have historically been extreme and may continue to be so, potentially resulting in significant losses.
• Regulatory Risks: Changes in regulation affecting bitcoin, stablecoins, or digital asset markets could adversely impact the Fund's operations, liquidity, and the value of its Shares.
• Operational and Custodial Risks: The Fund relies on third-party custodians and service providers for bitcoin custody and administration, exposing it to risks of loss, theft, or operational failures.
• Liquidity Risks: The Fund issues and redeems Shares only in large Creation Units to Authorized Participants, which may limit liquidity for some investors and affect trading prices relative to NAV.
• Sponsor and Fee Risks: The Sponsor charges fees and assumes ordinary expenses but is not obligated to waive fees. Extraordinary expenses not assumed by the Sponsor are borne by the Fund, potentially impacting returns.

• Franklin Templeton Digital Holdings Trust is a Delaware statutory trust formed on September 6, 2023, governed by an Agreement dated January 5, 2024, offering a single series called the Franklin Bitcoin ETF (the Fund).
• The Fund issues common units of beneficial interest (Shares) listed on the Cboe BZX Exchange under ticker symbol EZBC.
• The Fund seeks to reflect generally the performance of the price of bitcoin before payment of expenses and liabilities, providing investment exposure similar to bitcoin without direct ownership complexities.
• The Fund is a passive investment vehicle, not actively managed, and does not use leverage, derivatives, or similar instruments.
• The Fund's bitcoin holdings are custodied by Coinbase Custody Trust Company, LLC, with The Bank of New York Mellon serving as Administrator, Transfer Agent, and Cash Custodian.
• The Fund issues and redeems Shares only in Creation Units of 50,000 Shares or multiples thereof, transacted with Authorized Participants in exchange for bitcoin and/or cash.
• The Fund's net asset value (NAV) is calculated daily based on the CF Benchmarks Index, a volume-weighted median price of bitcoin across major spot exchanges.
• The Sponsor charges an annual fee of 0.19% of the Fund's daily NAV, accrued daily and payable quarterly, and assumes ordinary fees and expenses of the Fund.
• The Fund does not have income and sells bitcoin as needed to pay the Sponsor's fee and expenses not assumed by the Sponsor.
• For the fiscal year ended March 31, 2026, the Fund recognized Sponsor fees of $1,028,947 and reported a net loss of $118,528,831.
• The Fund's net assets were approximately $429 million as of March 31, 2026.
• The Fund's financial statements show net realized and unrealized losses on bitcoin investments reflecting bitcoin price volatility.
• The Fund's Shares are transferable, fully paid, and non-assessable, with shareholders having no voting rights except as authorized by the Sponsor.
• The Sponsor may terminate the Trust or Fund at its sole discretion with at least 30 days' notice to shareholders.
• The Fund bears transaction costs including Bitcoin network fees related to sales of bitcoin to pay fees and expenses.
• The Fund is not registered as an investment company under the Investment Company Act of 1940 and is not regulated as a commodity pool under the Commodity Exchange Act.
• The Fund's bitcoin holdings are held primarily in cold storage by the Custodian, with some bitcoin temporarily held in a Trading Balance with the Prime Broker for operational purposes.
• The Fund's NAV calculation relies on a regulated and IOSCO-compliant benchmark index aggregating bitcoin spot prices from multiple exchanges.
• The Fund's Sponsor is Franklin Holdings, LLC, a Delaware limited liability company formed in 2021.
• The Fund's financial disclosures are summarized from the latest SEC filings and provided for informational purposes only.
• The Fund's net investment loss and net realized and unrealized losses reflect the volatility and price fluctuations of bitcoin.
• The Fund's Sponsor may waive fees at its discretion but is under no obligation to do so.
• The Fund's ordinary expenses include fees for the Administrator, Marketing Agent, Custodians, Trustee, exchange listing, and other operational costs, some of which are assumed by the Sponsor.
• The Fund's financial statements show no cash or cash equivalents as of March 31, 2026, consistent with its bitcoin investment focus.
• The Fund's net assets increased from approximately $410.9 million to $429.3 million between March 31, 2025 and March 31, 2026, reflecting capital share transactions and bitcoin price changes.
• The Fund's Sponsor and Trustee have limited liability and indemnification provisions as per the Declaration of Trust.
• The Fund's Shares provide a cost-effective alternative to direct bitcoin investment by avoiding operational burdens such as wallet management and private key custody.
• The Fund's bitcoin holdings are subject to market risks including price volatility, regulatory changes, and operational risks in the bitcoin network.
• Recent news highlights significant inflows into bitcoin ETFs and discusses the impact of spot bitcoin ETF approvals on market prices and investor behavior.