Recent news highlights significant ETF inflows into EZPZ, indicating investor interest in the Fund.

• The Fund has experienced notable ETF inflows, reflecting growing investor demand for digital asset exposure through regulated exchange-traded products [N1].

The Fund offers investors a straightforward, regulated vehicle to gain exposure to a diversified portfolio of major digital assets, leveraging the Sponsor's passive indexing approach and established custodial and administrative infrastructure. The inclusion of multiple digital assets beyond Bitcoin and Ether broadens the Fund's appeal. The presence of major financial institutions as Authorized Participants and recent news of significant ETF inflows indicate market acceptance and investor interest. The Fund's structure and governance provide transparency and operational rigor, which may support investor confidence.

The Fund is exposed to the inherent volatility and regulatory uncertainties of digital asset markets, which can lead to significant fluctuations in net asset value and investor redemptions. The Fund's passive approach means it does not actively manage risk or seek to mitigate downturns. Extraordinary expenses not assumed by the Sponsor could impact Fund performance. The reliance on a limited number of Authorized Participants and custodial arrangements with third parties introduces operational risks. Market competition from other digital asset investment products may limit growth and market share.

The Fund's moat lies in its regulatory structure as a Delaware statutory trust offering a regulated exchange-traded fund that provides investors with convenient access to a diversified basket of digital assets without the complexities of direct digital asset management. The use of established custodians and prime brokers, daily NAV calculation based on regulated CF Reference Rates, and the involvement of reputable financial institutions as Authorized Participants support operational integrity and investor confidence. The Fund's passive indexing approach and listing on a major exchange facilitate liquidity and accessibility. However, the Fund operates in a competitive and rapidly evolving digital asset market with limited barriers to entry for similar products.

• Digital Asset Market Volatility: The Fund's net asset value is subject to significant fluctuations due to the volatile nature of the underlying digital assets, which can adversely affect investor returns.
• Regulatory and Legal Risks: Changes in regulatory frameworks or legal challenges related to digital assets or ETFs could impact the Fund's operations and investor access.
• Operational and Custodial Risks: The Fund relies on third-party custodians and prime brokers for safekeeping and trading of digital assets, exposing it to risks of loss, theft, or operational failures.
• Sponsor and Expense Risks: While the Sponsor assumes ordinary expenses, extraordinary or non-routine expenses not assumed by the Sponsor could negatively affect the Fund's financial condition.
• Liquidity and Market Risks: The Fund's shares may trade at prices different from NAV, and liquidity depends on Authorized Participants and market demand, which may vary.

• Franklin Crypto Trust is a Delaware statutory trust formed on August 13, 2024, offering one series: the Franklin Crypto Index ETF (ticker EZPZ) [S1].
• 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 [S1].
• The Fund is a passive investment vehicle that invests in digital assets approximately in the same weights as the Underlying Index and does not use leverage or derivatives [S1].
• 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 [S1].
• The Fund's shares trade on the Cboe BZX Exchange under the ticker symbol EZPZ and may trade at prices different from NAV [S1].
• The Sponsor is Franklin Holdings, LLC, and the Fund's Administrator, Transfer Agent, and Cash Custodian is The Bank of New York Mellon [S1].
• Coinbase Custody Trust Company, LLC serves as the Digital Asset Custodian, and Coinbase Inc. is the Fund's Prime Broker [S1].
• The Fund's NAV is calculated daily by the Administrator based on CF Reference Rates, which aggregate spot transactions from multiple digital asset platforms during a defined observation window [S1].
• The Fund's financial statements for the period from February 20, 2025, to December 31, 2025, show net investment loss of $5,250 and net realized and unrealized losses on digital assets totaling approximately $1.54 million, resulting in a net decrease in net assets from operations [S1,S2].
• Net assets increased to approximately $10.2 million as of December 31, 2025, primarily due to net capital share transactions [S1,S2].
• The Fund's Sponsor assumes ordinary fees and expenses but the Fund is responsible for extraordinary expenses and fees not assumed by the Sponsor [S1].
• The Fund's liquidity snapshot as of June 30, 2026, does not disclose cash or short-term investments balances [S2].
• The Fund is an emerging growth company and may comply with reduced public company reporting requirements [S1].
• The Fund's shares are backed by digital assets held in custody, with a portion temporarily held in the Prime Broker's Trading Balance, representing omnibus claims on the Prime Broker's digital assets [S1].
• Authorized Participants as of December 31, 2025, include Jane Street Capital, J.P. Morgan Securities, Virtu Americas, and Goldman Sachs & Co. [S1].
• The Fund's Sponsor has the sole discretion to terminate the Trust or the Fund with at least 30 days' notice to shareholders [S1].
• Recent news reports indicate significant ETF inflows into EZPZ, reflecting investor interest [N1].