Recent news highlights significant ETF inflows into Franklin Crypto Trust's ETF, indicating investor interest in the Fund.

• Franklin Crypto Trust's ETF (EZPZ) has experienced notable inflows, reflecting growing investor demand for digital asset exposure through regulated ETFs [N1].

The Fund offers investors a straightforward, regulated vehicle to gain exposure to a diversified portfolio of major digital assets without the complexities of direct digital asset management. The inclusion of multiple digital assets in the underlying index and quarterly rebalancing provide diversification benefits. The Fund's use of reputable custodians and prime brokers, along with transparent NAV calculation methodologies, supports operational reliability. Recent news of significant ETF inflows suggests growing investor interest and acceptance of the Fund as a digital asset investment vehicle [N1].

The Fund's performance and value are directly tied to the volatile prices of underlying digital assets, which can experience significant fluctuations. The Fund bears transaction costs and may incur realized and unrealized losses on digital asset holdings, as reflected in the initial operating period results. Regulatory changes affecting digital assets or stablecoins, operational risks related to custody and prime brokerage, and potential liquidity constraints could adversely impact the Fund. The Fund's relatively recent launch means limited historical performance data is available, and market price may diverge from NAV.

The Fund's moat lies in its regulatory structure as a Delaware statutory trust offering a regulated, exchange-listed ETF that provides investors with convenient access to a diversified basket of digital assets. The use of established custodians and prime brokers, along with a recognized index and daily NAV calculation based on regulated CF Reference Rates, supports investor confidence and operational integrity. The Fund's structure limits shareholder liability to Fund assets only, and the Sponsor's assumption of ordinary expenses reduces cost uncertainty for investors. The Fund's listing on a major exchange and the ability to transact through traditional brokerage accounts lower barriers to entry for investors seeking digital asset exposure.

• Digital Asset Price Volatility: The Fund's value is subject to the highly volatile prices of underlying digital assets, which can lead to significant fluctuations in NAV and share price.
• Regulatory Risks: Changes in regulation affecting digital assets, stablecoins, or related market infrastructure could impact the Fund's operations and asset values.
• Custody and Prime Brokerage Risks: The Fund relies on third-party custodians and prime brokers to safeguard digital assets, exposing it to operational and security risks.
• Liquidity Risks: The Fund's shares are redeemable only in large Creation Units by Authorized Participants, which may limit liquidity for retail investors.
• Sponsor Expense Assumption Limitations: While the Sponsor assumes ordinary expenses up to certain limits, extraordinary or non-routine expenses are borne by the Fund, potentially increasing costs.

• Franklin Crypto Trust is a Delaware statutory trust formed on August 13, 2024, offering one series: the Franklin Crypto Index ETF (ticker EZPZ).
• The Fund seeks to track the CF Institutional Digital Asset Index – US – Settlement Price, which as of December 31, 2025, includes Bitcoin, Ether, XRP, Solana, Dogecoin, Cardano, Chainlink, and Stellar Lumens in specified weights.
• The Fund is a passive investment vehicle, not leveraged, and does not use derivatives.
• Shares represent fractional undivided beneficial interests in the Fund's net assets and are listed on the Cboe BZX Exchange.
• Shares are issued and redeemed only in Creation Units of 50,000 shares by Authorized Participants, which are registered broker-dealers with agreements with the Sponsor and Administrator.
• The Fund's Digital Assets are held by Coinbase Custody Trust Company, LLC, with Coinbase Inc. as Prime Broker, and cash is held by The Bank of New York Mellon as Cash Custodian.
• The Sponsor is Franklin Holdings, LLC, formed July 21, 2021, and acts as Sponsor and marketing agent affiliate through Franklin Distributors, LLC.
• The Fund commenced operations on February 20, 2025, with initial seed capital from Franklin Resources, Inc.
• The Fund's net assets as of December 31, 2025, were approximately $10.2 million, with a net loss from operations of about $1.54 million for the period.
• The Fund's net asset value per share decreased by $7.15 during the initial operating period.
• The Fund's expenses include a Sponsor's fee, net of waivers, totaling $5,250 for the period.
• The Fund's NAV is calculated daily based on CF Reference Rates, which aggregate spot digital asset prices from multiple exchanges.
• The Fund's underlying index is rebalanced quarterly and may add or remove digital asset constituents according to index rules.
• The Fund's Sponsor assumes ordinary fees and expenses, including administrative, marketing, custody, trustee, exchange listing, and audit fees, up to $500,000 annually in legal fees.
• The Fund bears transaction costs related to digital asset purchases and sales, including network fees, except those related to creations and redemptions, which are borne by Authorized Participants.
• The Fund's shares can be bought and sold through traditional brokerage accounts, providing investors access to digital assets without direct management of wallets or keys.
• The Fund is an emerging growth company and may comply with reduced public company reporting requirements.
• The Fund's market price may differ from its NAV per share.
• The Fund's Sponsor has the sole discretion to terminate the Trust or Fund with at least 30 days' notice to shareholders.
• The Fund's digital assets held in the Prime Broker's Trading Balance represent omnibus claims and are held across various wallets and trading venues.
• The Fund's financial statements are prepared in accordance with US GAAP and SEC regulations.
• The Fund's net realized and unrealized losses on digital assets for the period were approximately $1.54 million.
• The Fund's liquidity ratios are not disclosed due to lack of detailed current asset and liability data.
• Recent news reports indicate significant ETF inflows into EZPZ, reflecting investor interest in the Fund [N1].