# Franklin Templeton Digital Holdings Trust

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Franklin Templeton Digital Holdings Trust).

## Overview

Franklin Templeton Digital Holdings Trust is a Delaware statutory trust that operates a single exchange-traded fund, the Franklin Bitcoin ETF (ticker: EZBC). The trust is designed to give investors bitcoin price exposure through listed securities rather than direct ownership of bitcoin, with the fund holding bitcoin and using custodians and trading counterparties to support creation, redemption, and custody.

## Products & services

• Franklin Bitcoin ETF (EZBC)
• Bitcoin price exposure through exchange-traded shares
• Creation and redemption of ETF shares
• Institutional bitcoin custody and trade execution support

- **Exchange-traded bitcoin exposure** (100%) — The fund’s core offering is listed shares that seek to reflect the price of bitcoin, net of expenses.

- Franklin Bitcoin ETF (EZBC)
- Exchange-traded shares representing fractional fund interests
- Bitcoin exposure designed to track bitcoin price performance
- Creation/redemption mechanism for authorized participants
- Bitcoin custody, cash custody, and prime brokerage support

## Customers

The trust’s investors are market participants who want bitcoin exposure in a brokerage account without directly buying, storing, or transferring bitcoin. The product is aimed at investors that prefer exchange-traded access, including retail investors, financial advisers, and institutions using listed securities for portfolio allocation or trading. Liquidity providers and authorized participants also play a key role because they create and redeem shares to keep the ETF trading efficiently.

- **Retail brokerage investors** (primary) — Buy EZBC shares for bitcoin exposure without managing wallets or custody.
- **Financial advisers and wealth platforms** (primary) — Use the ETF as a packaged bitcoin allocation inside managed portfolios.
- **Institutional investors** (secondary) — Use listed shares for tactical or strategic bitcoin exposure with exchange liquidity.
- **Authorized participants and market makers** (secondary) — Create, redeem, and trade shares to maintain ETF market functioning.

- Retail investors seeking bitcoin exposure in a brokerage account
- Financial advisers allocating crypto exposure for clients
- Institutions using listed securities for portfolio exposure
- Authorized participants creating and redeeming ETF shares
- Market makers supporting trading liquidity and spreads

## Geography

The trust is organized in Delaware and operates as a U.S.-listed product on Cboe BZX Exchange. Its business is economically tied to global bitcoin markets, but the operating structure, regulation, custody, and trading infrastructure are primarily U.S.-based. Geography matters mainly through U.S. regulatory oversight and the location of service providers such as custodians, the marketing agent, and trading venues.

- Formed as a Delaware statutory trust in the United States
- Shares listed on Cboe BZX Exchange in the U.S.
- Bitcoin custody and cash custody are handled by U.S.-linked service providers
- Trading relies on approved connected venues and market makers
- Exposure is global through bitcoin, but operations are U.S.-regulated

## Strategy

The trust’s strategy is to provide a convenient, cost-effective listed vehicle for bitcoin exposure while reducing the operational burden of direct bitcoin ownership. It relies on institutional-grade custody, market access, and a creation/redemption structure to keep the ETF aligned with bitcoin’s price and tradable on an exchange. The product’s competitive position depends on trust in custody, liquidity, and the sponsor’s ability to operate within evolving digital-asset regulation.

- **Maintain tight linkage to bitcoin price** (short-term) — The fund’s value proposition depends on tracking bitcoin closely after expenses.
- **Preserve custody and trading integrity** (short-term) — Operational reliability is essential because the product depends on third-party custodians and venues.
- **Adapt to digital-asset regulation** (medium-term) — Regulatory changes could affect the fund’s ability to operate and the attractiveness of the shares.

- Offer bitcoin exposure through exchange-traded shares
- Use custody and trading infrastructure to simplify access
- Maintain efficient creation/redemption mechanics
- Rely on institutional service providers for operations
- Navigate changing digital-asset regulation

## Risks

The main risks come from bitcoin price volatility, regulatory uncertainty, and dependence on third-party custodians, trading venues, and service providers. Because the trust’s value is tied to a single digital asset, adverse changes in bitcoin markets, custody failures, or new rules on digital assets could directly affect NAV, liquidity, and investor demand.

- **Bitcoin price volatility** [high] — The fund is designed to reflect bitcoin performance, so asset price moves flow directly into NAV.
- **Regulatory uncertainty for digital assets** [high] — New laws or enforcement actions could ban, restrict, or burden bitcoin-related activities.
- **Custody and cyber/security breach** [critical] — Bitcoin is held through custodians and private-key infrastructure that can be targeted by theft or failure.
- **Connected trading venue disruption** [high] — The prime broker routes orders through third-party venues, so outages or insolvency can impair execution and recovery.
- **Tax and licensing uncertainty** [medium] — Unclear treatment as a money services business or money transmitter could create extra expenses and compliance obligations.

- Bitcoin price swings directly drive fund NAV and investor returns
- Digital asset regulation could restrict bitcoin or ETF operations
- Custody or private-key security failures could cause asset loss
- Trading venue outages or insolvency could disrupt execution and liquidity
- Money transmitter or MSB treatment could add costs and compliance burden

## Accounting

The most important accounting judgment is fair-value measurement of bitcoin, which drives reported NAV and results of operations. The trust values bitcoin using its identified principal market rather than the ETF index price, and quarter-to-quarter results can move sharply with bitcoin prices and share creation/redemption activity. Because the fund is a single-asset vehicle, small changes in valuation inputs, custody fees, and sponsor fees can have a visible effect on reported performance.

- **Fair value measurement of bitcoin** — Directly affects NAV, earnings, and period-to-period comparability
- **Principal market determination** — Can change reported valuation and NAV
- **Sponsor fee accrual** — Reduces reported performance
- **Share creation and redemption accounting** — Impacts assets under management and per-share metrics

- Bitcoin is carried at fair value using the principal market price
- NAV and Principal Market NAV can differ from index-based measures
- Share creations and redemptions affect bitcoin holdings and NAV
- Sponsor fees reduce NAV and create recurring expense drag
- Custody and valuation estimates are central to reported results

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*Last updated: 2026-04-28T20:08:57.871675+00:00*