Cover Page
Cover Page - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Jun. 04, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-41915 | ||
Entity Registrant Name | FRANKLIN TEMPLETON DIGITAL HOLDINGS TRUST | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001992870 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 93-6855785 | ||
Entity Address, Address Line One | One Franklin Parkway | ||
Entity Address, City or Town | San Mateo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94403 | ||
City Area Code | 650 | ||
Local Phone Number | 312-2000 | ||
Title of 12(b) Security | Shares of Franklin Bitcoin ETF | ||
Trading Symbol | EZBC | ||
Security Exchange Name | CboeBZX | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 10,600,000 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | San Francisco, California |
Combined Statement of Assets an
Combined Statement of Assets and Liabilities | Mar. 31, 2024 USD ($) $ / shares shares | [1] |
Assets: | ||
Investment in bitcoin, at fair value (cost $280,623,942) | $ 341,901,126 | |
Total assets | 341,901,126 | |
Liabilities: | ||
Net Sponsor's fee payable | 21 | |
Total liabilities | 21 | |
Net assets | $ 341,901,105 | |
Shares issued and outstanding, no par value (unlimited Shares authorized) | shares | 8,350,000 | |
Net asset value per Share | $ / shares | $ 40.95 | |
Franklin Bitcoin ETF [Member] | ||
Assets: | ||
Investment in bitcoin, at fair value (cost $280,623,942) | $ 341,901,126 | |
Total assets | 341,901,126 | |
Liabilities: | ||
Net Sponsor's fee payable | 21 | |
Total liabilities | 21 | |
Net assets | $ 341,901,105 | |
Shares issued and outstanding, no par value (unlimited Shares authorized) | shares | 8,350,000 | |
Net asset value per Share | $ / shares | $ 40.95 | |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024. |
Combined Statement of Assets _2
Combined Statement of Assets and Liabilities (Parenthetical) | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares | |
Investment in bitcoin | $ | $ 280,623,942 |
Common stock, no par value | $ / shares | $ 0 |
Common stock, shares authorized, unlimited | Unlimited |
Franklin Bitcoin ETF [Member] | |
Investment in bitcoin | $ | $ 280,623,942 |
Common stock, no par value | $ / shares | $ 0 |
Common stock, shares authorized, unlimited | Unlimited |
Combined Schedule of Investment
Combined Schedule of Investments | Mar. 31, 2024 USD ($) BTC | |
Schedule of Investments [Line Items] | ||
Cost | $ 280,623,942 | |
Fair Value | $ 341,901,126 | [1] |
Investment in bitcoin [Member] | ||
Schedule of Investments [Line Items] | ||
Quantity of Bitcoin | BTC | 4,842.9986 | [1] |
Cost | $ 280,623,942 | [1] |
Fair Value | $ 341,901,126 | [1] |
% of Net Assets | 100% | [1] |
Total Investment [Member] | ||
Schedule of Investments [Line Items] | ||
Cost | $ 280,623,942 | [1] |
Fair Value | $ 341,901,126 | [1] |
% of Net Assets | 100% | [1] |
Liabilities in excess of other assets [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ (21) | [1] |
% of Net Assets | 0% | [1] |
Net Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 341,901,105 | [1] |
% of Net Assets | 100% | [1] |
Franklin Bitcoin ETF [Member] | ||
Schedule of Investments [Line Items] | ||
Cost | $ 280,623,942 | |
Fair Value | $ 341,901,126 | [1] |
Franklin Bitcoin ETF [Member] | Investment in bitcoin [Member] | ||
Schedule of Investments [Line Items] | ||
Quantity of Bitcoin | BTC | 4,842.9986 | [1] |
Cost | $ 280,623,942 | [1] |
Fair Value | $ 341,901,126 | [1] |
% of Net Assets | 100% | [1] |
Franklin Bitcoin ETF [Member] | Total Investment [Member] | ||
Schedule of Investments [Line Items] | ||
Cost | $ 280,623,942 | [1] |
Fair Value | $ 341,901,126 | [1] |
% of Net Assets | 100% | [1] |
Franklin Bitcoin ETF [Member] | Liabilities in excess of other assets [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ (21) | [1] |
% of Net Assets | 0% | [1] |
Franklin Bitcoin ETF [Member] | Net Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 341,901,105 | [1] |
% of Net Assets | 100% | [1] |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024. |
Combined Statement of Operation
Combined Statement of Operations | 3 Months Ended | |
Mar. 31, 2024 USD ($) $ / shares | [1] | |
Expenses: | ||
Sponsor's Fee | $ 54,280 | |
Total Expenses | (54,280) | |
Less waiver and reimbursement | 54,259 | |
Net investment loss | (21) | |
Realized and unrealized gain (loss): | ||
Net realized gain on investment in bitcoin | 0 | |
Net change in unrealized appreciation (depreciation) on investment in bitcoin | 61,220,195 | [2] |
Net realized and change in unrealized appreciation (depreciation) in bitcoin | 61,220,195 | |
Net increase (decrease) in net assets resulting from operations | $ 61,220,174 | [2] |
Net increase (decrease) in Principal Market NAV resulting from operations | $ / shares | $ 15.63 | |
Franklin Bitcoin ETF [Member] | ||
Expenses: | ||
Sponsor's Fee | $ 54,280 | |
Total Expenses | (54,280) | |
Less waiver and reimbursement | 54,259 | |
Net investment loss | (21) | |
Realized and unrealized gain (loss): | ||
Net realized gain on investment in bitcoin | 0 | |
Net change in unrealized appreciation (depreciation) on investment in bitcoin | 61,220,195 | [2] |
Net realized and change in unrealized appreciation (depreciation) in bitcoin | 61,220,195 | |
Net increase (decrease) in net assets resulting from operations | $ 61,220,174 | [2] |
Net increase (decrease) in Principal Market NAV resulting from operations | $ / shares | $ 15.63 | |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Combined Statement of Cash Flow
Combined Statement of Cash Flows | 3 Months Ended | |
Mar. 31, 2024 USD ($) | [1],[2] | |
Cash Flows from Operating Activities | ||
Net increase in net assets resulting from operations | $ 61,220,174 | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||
Purchases of bitcoin | (278,015,474) | |
Net change in unrealized appreciation/depreciation | (61,220,195) | |
Change in operating assets and liabilities: | ||
Sponsor's fees payable | 21 | |
Net cash used in operating activities | (278,015,474) | |
Proceeds from issuance of Shares | 278,015,474 | |
Net cash provided by financing activities | 278,015,474 | |
Cash Flows from Financing Activities: | ||
Net increase in cash | 0 | |
Cash, beginning of period | 0 | |
Cash, end of period | 0 | |
Franklin Bitcoin ETF [Member] | ||
Cash Flows from Operating Activities | ||
Net increase in net assets resulting from operations | 61,220,174 | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||
Purchases of bitcoin | (278,015,474) | |
Net change in unrealized appreciation/depreciation | (61,220,195) | |
Change in operating assets and liabilities: | ||
Sponsor's fees payable | 21 | |
Net cash used in operating activities | (278,015,474) | |
Proceeds from issuance of Shares | 278,015,474 | |
Net cash provided by financing activities | 278,015,474 | |
Cash Flows from Financing Activities: | ||
Net increase in cash | 0 | |
Cash, beginning of period | 0 | |
Cash, end of period | $ 0 | |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Combined Statement of Cash Fl_2
Combined Statement of Cash Flows (Parenthetical) | 3 Months Ended | 4 Months Ended | |||
Jan. 08, 2024 USD ($) Creationunits $ / shares shares | Dec. 15, 2023 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) Creationunits | Mar. 31, 2024 USD ($) Creationunits | ||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Initial Seed Shares [Member] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Seed Creation Units [Member] | |||||
Number of creation units | Creationunits | 2 | 2 | 2 | ||
Bitcoins [Member] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Bitcoins [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Common Stock [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Franklin Bitcoin ETF [Member] | Initial Seed Shares [Member] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | |||||
Number of creation units | Creationunits | 2 | ||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Franklin Bitcoin ETF [Member] | Common Stock [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Combined Statement of Changes i
Combined Statement of Changes in Net Assets | 3 Months Ended | |
Mar. 31, 2024 USD ($) | [1] | |
Net assets, beginning of period | $ 2,665,457 | |
Net investment loss | (21) | |
Net realized gain (loss) on investment in bitcoin | 0 | |
Net change in unrealized appreciation (depreciation) on investment in bitcoin | 61,220,195 | |
Net increase (decrease) in net assets resulting from operations | 61,220,174 | |
Increase (decrease) in net assets from capital share transactions: | ||
Contributions for Shares issued | 278,015,474 | [2] |
Distributions for Shares redeemed | 0 | |
Net increase in net assets resulting from capital share transactions | 278,015,474 | |
Net assets, end of period | 341,901,105 | |
Franklin Bitcoin ETF [Member] | ||
Net assets, beginning of period | 2,665,457 | |
Net investment loss | (21) | |
Net realized gain (loss) on investment in bitcoin | 0 | |
Net change in unrealized appreciation (depreciation) on investment in bitcoin | 61,220,195 | |
Net increase (decrease) in net assets resulting from operations | 61,220,174 | |
Increase (decrease) in net assets from capital share transactions: | ||
Contributions for Shares issued | 278,015,474 | [2] |
Distributions for Shares redeemed | 0 | |
Net increase in net assets resulting from capital share transactions | 278,015,474 | |
Net assets, end of period | $ 341,901,105 | |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Combined Statement of Changes_2
Combined Statement of Changes in Net Assets (Parenthetical) | 3 Months Ended | 4 Months Ended | |||
Jan. 08, 2024 USD ($) Creationunits $ / shares shares | Dec. 15, 2023 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) Creationunits | Mar. 31, 2024 USD ($) Creationunits | ||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Initial Seed Shares [Member] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Seed Creation Units [Member] | |||||
Number of creation units | Creationunits | 2 | 2 | 2 | ||
Bitcoins [Member] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Bitcoins [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Common Stock [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Franklin Bitcoin ETF [Member] | Initial Seed Shares [Member] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | |||||
Number of creation units | Creationunits | 2 | ||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Franklin Bitcoin ETF [Member] | Common Stock [Member] | Seed Creation Units [Member] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Pay vs Performance Disclosure
Pay vs Performance Disclosure | 3 Months Ended | |
Mar. 31, 2024 USD ($) | ||
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 61,220,174 | [1],[2] |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 3 Months Ended |
Mar. 31, 2024 | |
Organization | 1. ORGANIZATION The Franklin Templeton Digital Holdings Trust (the “Trust”) was formed as a Delaware statutory trust on September 6, 2023, and is governed by the provisions of an Agreement and Declaration of Trust dated as of January 5, 2024. The Trust, as registrant is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not a commodity pool for purposes of the Commodity Exchange Act (“CEA”). The accompanying financial statements relate to the Trust, as registrant, and the one series that it currently offers, the Franklin Bitcoin ETF (the “Fund”) presented on a combined basis. Separate, series-level financial statements are provided for the Fund in another section of this report. The Trust had no operations prior to the Fund’s launch, other than in connection with the organization and registration of the Fund’s shares. The Trust had no operations prior to the commencement of operations of the Fund on January 11, 2024, other than matters relating to its organization and the registration of the Fund under the Securities Act of 1933, as amended (the “Securities Act”). The Sponsor of the Trust and the Fund (the “Sponsor”) is Franklin Holdings, LLC. The Sponsor is a Delaware limited liability company formed on July 21, 2021. The Sponsor is not subject to regulation by the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator with respect to the Fund, or a commodity trading advisor with respect to the Fund. The Fund issues shares (the “Shares”), which represent units of fractional undivided beneficial interest in the Fund. The Shares of the Fund are listed on the Cboe BZX Exchange, Inc. The Fund seeks to reflect generally the performance of the price of bitcoin. The Fund seeks to reflect such performance before payment of the Fund’s expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding, and trading bitcoin directly on a peer-to-peer The Bank of New York Mellon (“BNYM”) serves as the Fund’s Administrator, Transfer Agent and the Cash Custodian. The Administrator is generally responsible for the day-to-day The Fund issues Shares only in Creation Units of 50,000 or multiples thereof. Creation Units are issued and redeemed in exchange for cash. Individual Shares will not be redeemed by the Fund but the Shares are listed and traded on the Exchange under the ticker symbol The Trust is an “emerging growth company” as that term is used in the Securities Act of 1933, as amended (the “Securities Act”), and, as such, the Trust may elect to comply with certain reduced public company reporting requirements. On December 15, 2023, the Seed Capital Investor purchased 4,000 Shares at a per-Share per-Share The statement of assets and liabilities and schedule of investments at March 31, 2024 and the statement of operations, cash flows and changes in net assets for the period ended March 31, 2024, behalf of the Trust, as registrant, combined with its one currently offered series, the Fund, and for the Fund separately (included below in a separate section of this report), and are audited. As the Fund had no operations prior to the initial seeding on December 15, 2023, comparative statements for prior year have not been included. The fiscal year of the Trust and the Fund is March 31st. |
Franklin Bitcoin ETF [Member] | |
Organization | 1. ORGANIZATION The Franklin Templeton Digital Holdings Trust (the “Trust”) was formed as a Delaware statutory trust on September 6, 2023, and is governed by the provisions of an Agreement and Declaration of Trust dated as of January 5, 2024. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not a commodity pool for purposes of the Commodity Exchange Act (“CEA”). The accompanying financial statements relate to the one series that the Trust currently offers, the Franklin Bitcoin ETF (the “Fund”). The Trust had no operations prior to the Fund’s launch, other than in connection with the organization and registration of the Fund’s shares. The Trust had no operations prior to the commencement of operations of the Fund on January 11, 2024, other than matters relating to its organization and the registration of the Fund under the Securities Act of 1933, as amended (the “Securities Act”). The Sponsor of the Trust and the Fund (the “Sponsor”) is Franklin Holdings, LLC. The Sponsor is a Delaware limited liability company formed on July 21, 2021. The Sponsor is not subject to regulation by the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator with respect to the Fund, or a commodity trading advisor with respect to the Fund. The Fund issues shares (the “Shares”), which represent units of fractional undivided beneficial interest in the Fund. The Shares of the Fund are listed on the Cboe BZX Exchange, Inc. (“Cboe BZX Exchange” or the “Exchange”). The Fund seeks to reflect generally the performance of the price of bitcoin. The Fund seeks to reflect such performance before payment of the Fund’s expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding, and trading bitcoin directly on a peer-to-peer The Bank of New York Mellon (“BNYM”) serves as the Fund’s Administrator, Transfer Agent and the Cash Custodian. The Administrator is generally responsible for the day-to-day The Fund issues Shares only in Creation Units of 50,000 or multiples thereof. Creation Units are issued and redeemed in exchange for cash. Individual Shares will not be redeemed by the Fund but the Shares are listed and traded on the Exchange under the ticker symbol The Trust is an “emerging growth company” as that term is used in the Securities Act of 1933, as amended (the “Securities Act”), and, as such, the Trust may elect to comply with certain reduced public company reporting requirements. On December 15, 2023, the Seed Capital Investor purchased 4,000 Shares at a per-Share per-Share The statement of assets and liabilities and schedule of investments at March 31, 2024 and the statement of operations, cash flows and changes in net assets for the period ended March 31, 2024, behalf of the Trust, as registrant, combined with its one currently offered series, the Fund (included above in a separate section of this report), and for the Fund separately, and are audited. As the F The fiscal year of the Trust and the Fund is March 31st. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES U.S. GAAP (“GAAP”) contains no authoritative guidance related to the accounting for digital assets. As a result, transactions of bitcoin will be accounted for analogizing to existing accounting standards that management of the Sponsor believes are appropriate to the circumstances. There can be no certainty as to when the FASB or other standards setter will issue accounting standards for bitcoin, if at all. In preparing financial statements in conformity with GAAP, management of the Sponsor makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates. The following is a summary of significant accounting policies followed by the Trust and the Fund. 2.1. Basis of Presentation The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not required to register under such act. The financial statements are presented for the Trust, as the registrant, combined with the Fund. Financial statements for the Fund presented at the series-level are provided separately in this report. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series and these notes to the financial statements relate to the Trust, as the registrant, combined with the Fund. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. Individual series-level financial statements for the Fund are presented separately within this report. 2.2. Calculation of NAV and NAV per Share The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the bitcoin held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CF Benchmarks Index shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the bitcoin held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. 2.3. Valuation The Fund’s financial statements are prepared in accordance GAAP for financial information. Bitcoin is priced at 11:59:59PM ET. With respect to the Fund’s bitcoin holdings, the Trust will follow the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilize an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for bitcoin as of the Fund’s financial statement measurement date. ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. On March 31, 2024, the value of the bitcoin held by the Fund is categorized as Level 1. The cost basis of the investment in bitcoin recorded by the Trust on behalf of the Fund for financial reporting purposes is the fair value of bitcoin at the time of transfer. 2.4. Fees, Expenses and Realized Gain (Loss) The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, Marketing Agent, the Custodians and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor will also pay the costs of the Fund’s organization and the initial offering costs and may not seek reimbursement of such costs. The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Fund will sell bitcoin as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any bitcoin network fees or other similar transaction fees, in connection with any sales of bitcoin necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any bitcoin network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For a period from January 12, 2024 to August 2, 2024, the Sponsor will waive a portion of the Sponsor’s Fee so that the Sponsor’s Fee after the fee waiver will be equal to 0.00% of the net asset value of the Fund for the first $10.0 billion of the Fund’s assets. Prior to the implementation of the waiver, for the one day period January 11, 2024, the Fund accrued the Sponsor fee of 0.29% ($21). For the period January 11, 2024 to March 31, 2024, the F . of The Sponsor is not required to pay any extraordinary or non-routine non-recurring non-routine (including, for example, in connection with any fork of the bitcoin blockchain, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, Bitcoin Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell bitcoin to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of bitcoin held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell bitcoin to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of bitcoin represented by each Share. To cover the Sponsor’s fee and expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Fund to convert bitcoin into U.S. dollars generally at the price available through the Prime Broker’s Coinbase Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts. The number of bitcoins represented by a Share will decline each time the Fund pays the Sponsor’s fee or any Fund expenses not assumed by the Sponsor by transferring or selling bitcoins. The quantity of bitcoins to be sold to permit payment of the Sponsor’s fee or Fund expenses not assumed by the Sponsor, will vary from time to time depending on the level of the Fund’s expenses and the value of bitcoins held by the Fund. 2.5. Income Taxes The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gain, losses, and expenses will “flow through” to the shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2024, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. 2.6. Creation and Redemption of Shares The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of bitcoin represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the bitcoin represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of bitcoin has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Bitcoin Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive bitcoin as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving bitcoin as part of the creation or redemption process. The Fund will create Shares by receiving bitcoin from a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to deliver the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the bitcoin to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the bitcoin to the Fund. The Fund will redeem shares by delivering bitcoin to a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to receive the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the bitcoin from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the bitcoin from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. Creation Units will be sold at a per-Share Changes in the Shares for the period from January 11, 2024 (Commencement of operations) to March 31, 2024 are as follows: Shares Amount Balance at January 11, 2024 * 100,000 $ 2,608,468 ^ Creation of Shares 8,250,000 278,015,474 Redemption of Shares — — Balance at March 31, 2024 8,350,000 $ 280,623,942 * The date represents commencement of operations. ^ On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affili ate of per-Share per-Share Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, 350-60): 2023-08”). 2023-08 2023-08 |
Franklin Bitcoin ETF [Member] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES U.S. GAAP (“GAAP”) contains no authoritative guidance related to the accounting for digital assets. As a result, transactions of bitcoin will be accounted for analogizing to existing accounting standards that management of the Sponsor believes are appropriate to the circumstances. There can be no certainty as to when the FASB or other standards setter will issue accounting standards for bitcoin, if at all. In preparing financial statements in conformity with GAAP, management of the Sponsor makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates. The following is a summary of significant accounting policies followed by the Trust and the Fund. 2.1. Basis of Presentation The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not required to register under such act. The financial statements are presented for the Trust, as the registrant, combined with the Fund (in a separate section of this report) and for the Fund individually. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series and these notes to the financial statements relate to the Fund individually. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. 2.2. Calculation of NAV and NAV per Share The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the bitcoin held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CF Benchmarks Index shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the bitcoin held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. 2.3. Valuation The Fund’s financial statements are prepared in accordance GAAP for financial information. Bitcoin is priced at 11:59:59PM ET. With respect to the Fund’s bitcoin holdings, the Trust will follow the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilize an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for bitcoin as of the Fund’s financial statement measurement date. ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. On March 31, 2024, the value of the bitcoin held by the Fund is categorized as Level 1. The cost basis of the investment in bitcoin recorded by the Trust on behalf of the Fund for financial reporting purposes is the fair value of bitcoin at the time of transfer. 2.4. Fees, Expenses and Realized Gain (Loss) The Fund’s only ordinary recurring expense is The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Fund will sell bitcoin as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any bitcoin network fees or other similar transaction fees, in connection with any sales of bitcoin necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any bitcoin network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For a period from January 12, 2024 to August 2, 2024, the Sponsor will waive a portion of the Sponsor’s Fee so that the Sponsor’s Fee after the fee waiver will be equal to 0.00% of the net asset value of the Fund for the first $10.0 billion of the Fund’s assets. Prior to the implementation of the waiver, for the one day period January 11, 2024, the Fund accrued the Sponsor fee of 0.29% ($21). For the period January 11, 2024 to March 31, 2024, the F . of The Sponsor is not required to pay any extraordinary or non-routine non-recurring non-routine indemnification of the Cash Custodian, Bitcoin Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell bitcoin to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of bitcoin held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell bitcoin to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of bitcoin represented by each Share. To cover the Sponsor’s fee and expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Fund to convert bitcoin into U.S. dollars generally at the price available through the Prime Broker’s Coinbase Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts. The number of bitcoins represented by a Share will decline each time the Fund pays the Sponsor’s fee or any Fund expenses not assumed by the Sponsor by transferring or selling bitcoins. The quantity of bitcoins to be sold to permit payment of the Sponsor’s fee or Fund expenses not assumed by the Sponsor, will vary from time to time depending on the level of the Fund’s expenses and the value of bitcoins held by the Fund. 2.5. Income Taxes The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Fund itself is not subject to United States federal income tax. Instead, the Fund’s income, gain, losses, and expenses will “flow through” to the shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2024, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. 2.6. Creation and Redemption of Shares The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of bitcoin represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the bitcoin represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of bitcoin has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Bitcoin Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive bitcoin as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving bitcoin as part of the creation or redemption process. The Fund will create Shares by receiving bitcoin from a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to deliver the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the bitcoin to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the bitcoin to the Fund. The Fund will redeem shares by delivering bitcoin to a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to receive the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the bitcoin from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the bitcoin from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. Creation Units will be sold at a per-Share Changes in the Shares for the period from January 11, 2024 (Commencement of operations) to March 31, 2024 are as follows: Shares Amount Balance at January 11, 2024 * 100,000 $ 2,608,468 ^ Creation of Shares 8,250,000 278,015,474 Redemption of Shares — — Balance at March 31, 2024 8,350,000 $ 280,623,942 * The date represents commencement of operations. ^ On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share per-Share Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, 350-60): 2023-08”). 2023-08 2023-08 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2024 | |
Related Parties | 3. RELATED PARTIES The Sponsor is a related party of the Trust and the Fund. The Marketing Agent is an affiliate of the Sponsor. Expenses payable to the Marketing Agent, if any, are paid through the Sponsor’s fee. The Trust also considers Franklin Resources, Inc., the ultimate parent company of the Sponsor, to be a related party of the Trust and the Fund. As of March 31, 2024, 1,010,000 shares of the Fund were held by the related party. The Sponsor of the Trust is Franklin Holdings, LLC. The Sponsor is responsible for establishing the Trust and for the registration of the Shares. The Sponsor generally oversees the performance of the Fund’s principal service providers but does not exercise day-to-day Franklin Distributors, LLC serves as the Marketing Agent of the Fund. The Sponsor and the Marketing Agent are affiliates, and each is considered to be a related party to the Trust and the Fund In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, Marketing A |
Franklin Bitcoin ETF [Member] | |
Related Parties | 3. RELATED PARTIES The Sponsor is a related party of the Trust and the Fund. The Marketing Agent is an affiliate of the Sponsor. Expenses payable to the Marketing Agent, if any, are paid through the Sponsor’s fee. The Trust also considers Franklin Resources, Inc., the ultimate parent company of the Sponsor, to be a related party of the Trust and the Fund. As of March 31, 2024, 1,010,000 shares of the Fund were held by the related party. The Sponsor of the Trust is Franklin Holdings, LLC. The Sponsor is responsible for establishing the Trust and for the registration of the Shares. The Sponsor generally oversees the performance of the Fund’s principal service providers but does not exercise day-to-day Franklin Distributors, LLC serves as the Marketing Agent of the Fund. The Sponsor and the Marketing Agent are affiliates, and each is considered to be a related party to the Trust and the Fund. Franklin Resources, Inc. (“FRI”) is the ultimate parent company of the Sponsor and the Marketing Agent. FRI is the holding company for various subsidiaries that together are referred to as Franklin Templeton Investments. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, Marketing Agent, the Custodians and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, up to $500,000 per annum in ordinary legal fees and expenses. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2024 | |
Concentration of Risk | 4. CONCENTRATION OF RISK The Fund holds only bitcoin and cash, which creates a concentration risk associated with fluctuations in the price of bitcoin. Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Fund. The trading prices of bitcoin have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of bitcoin and the Shares may include an increase in the global bitcoin supply or a decrease in global bitcoin demand; market conditions of, and overall sentiment towards, the digital assets and blockchain technology industry; trading activity on digital asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of bitcoin as a medium of exchange, store-of-value |
Franklin Bitcoin ETF [Member] | |
Concentration of Risk | 4. CONCENTRATION OF RISK The Fund holds only bitcoin and cash, which creates a concentration risk associated with fluctuations in the price of bitcoin. Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Fund. The trading prices of bitcoin have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of bitcoin and the Shares may include an increase in the global bitcoin supply or a decrease in global bitcoin demand; market conditions of, and overall sentiment towards, the digital assets and blockchain technology industry; trading activity on digital asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of bitcoin as a medium of exchange, store-of-value |
Financial Highlights
Financial Highlights | 3 Months Ended |
Mar. 31, 2024 | |
Investment Company, Financial Highlights [Line Items] | |
Financial Highlights | 5. FINANCIAL HIGHLIGHTS For the period Net asset value per Share, beginning of year(a) $ 26.65 Net investment loss(b)(c) (0.00 ) Net realized and unrealized gain (loss) on investment in bitcoin 14.30 Net change in net assets from operations 14.30 Net asset value per Share, end of year $ 40.95 Total return, at net asset value(d)(e)(f) 53.66 % Ratio to average net assets Net investment loss(g) 0.00 % Gross expenses(g) 0.19 % Net expenses(g) 0.00 % * No comparative period presented as the Fund’s operations commenced on January 11, 2024. (a) The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial bitcoin seed creation transaction conducted on January 8, 2024. Prior to January 8, 2024, 4,000 shares were acquired on December 15, 2023 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were per-Share bitcoins). As of January 8, 2024, the net asset value of the Fund for transactions with Authorized Participants was $2,723,812.24 and the net asset value per Share of the Fund was $27.24. (b) Calculated using average Shares outstanding. (c) Amount is less than $.01. (d) Total return information based on net asset values calculated for transactions with Authorized Participants was Based on the change in net asset value of a Share for the period January 11, 2024 (Commencement of operations) to March 31, 2024. (e) Percentage is not annualized. (f) Certain adjustments were made to the net assets of the Fund at January 11, 2024 and at March 31, 2024 for financial reporting purposes. Accordingly, adjusted total returns disclosed in the Financial Highlights and total return information based on net asset values calculated for transactions with Authorized Participants differ. (g) Annualized based on the period from January 11, 2024 (Commencement of operations) to March 31, 2024. See accompanying notes to the financial statements. |
Franklin Bitcoin ETF [Member] | |
Investment Company, Financial Highlights [Line Items] | |
Financial Highlights | 5. FINANCIAL HIGHLIGHTS For the period Net asset value per Share, beginning of year(a) $ 26.65 Net investment loss(b)(c) (0.00 ) Net realized and unrealized gain (loss) on investment in bitcoin 14.30 Net change in net assets from operations 14.30 Net asset value per Share, end of year $ 40.95 Total return, at net asset value(d)(e)(f) 53.66 % Ratio to average net assets Net investment loss(g) 0.00 % Gross expenses(g) 0.19 % Net expenses(g) 0.00 % * No comparative period presented as the Fund’s operations commenced on January 11, 2024. (a) The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to th per-Share bitcoins). As of January 8, 2024, the net asset value of the Fund for transactions with Authorized Participants was $2,723,812.24 and the net asset value per Share of the Fund was $27.24. (b) Calculated using average Shares outstanding. (c) Amount is less than $.01. (d) Total return information based on net asset values calculated for transactions with Authorized Participants was Based on the change in net asset value of a Share for the period January 11, 2024 (Commencement of operations) to March 31, 2024. (e) Percentage is not annualized. (f) Certain adjustments were made to the net assets of the Fund at January 11, 2024 and at March 31, 2024 for financial reporting purposes. Accordingly, adjusted total returns disclosed in the Fihi and total return information based on net asset values calculated for transactions with Authorized Participants differ. (g) Annualized based on the period from January 11, 2024 (Commencement of operations) to March 31, 2024. See accompanying notes to the financial statements. |
Commitment and Contingent Liabi
Commitment and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Commitments And Contingent Liabilities [Line Items] | |
Commitment and Contingent Liabilities | 6. COMMITMENTS AND CONTINGENT LIABILITIES In the normal course of business, the Trust, on behalf of the Fund, may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. |
Franklin Bitcoin ETF [Member] | |
Commitments And Contingent Liabilities [Line Items] | |
Commitment and Contingent Liabilities | 6. COMMITMENTS AND CONTINGENT LIABILITIES In the normal course of business, the Trust, on behalf of the Fund, may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. |
Indemnification
Indemnification | 3 Months Ended |
Mar. 31, 2024 | |
Indemnification [Line Items] | |
Indemnification | 7. INDEMNIFICATION Under the Trust’s organizational documents, the Sponsor and its shareholders, members, directors, affiliates, officers, employees and subsidiaries are indemnified by the Trust against certain liabilities. The Fund has also agreed to indemnify certain of its other service providers, including the Administrator, Marketing Agent, Custodians and the Trustee (including its officers, affiliates, directors, employees, and agents), for certain liabilities incurred by such parties in connection with their respective agreements to provide services for the Fund. The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any bitcoin or other assets of the Fund or the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. |
Franklin Bitcoin ETF [Member] | |
Indemnification [Line Items] | |
Indemnification | 7. INDEMNIFICATION Under the Trust’s organizational documents, the Sponsor and its shareholders, members, directors, affiliates, officers, employees and subsidiaries are indemnified by the Trust against certain liabilities. The Fund has also agreed to indemnify certain of its other service providers, including the Administrator, Marketing Agent, Custodians and the Trustee (including its officers, affiliates, directors, employees, and agents), for certain liabilities incurred by such parties in connection with their respective agreements to provide services for the Fund. The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any bitcoin or other assets of the Fund or the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Event [Line Items] | |
Subsequent Events | 8. SUBSEQUENT EVENTS The Trust and the Fund have evaluated subsequent events through the issuance of the financial statements and determined that no such events have occurred that require disclosure. |
Franklin Bitcoin ETF [Member] | |
Subsequent Event [Line Items] | |
Subsequent Events | 8. SUBSEQUENT EVENTS The Trust and the Fund have evaluated subsequent events through the issuance of the financial statements and determined that no such events have occurred that require disclosure. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation | 2.1. Basis of Presentation The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not required to register under such act. The financial statements are presented for the Trust, as the registrant, combined with the Fund. Financial statements for the Fund presented at the series-level are provided separately in this report. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series and these notes to the financial statements relate to the Trust, as the registrant, combined with the Fund. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. Individual series-level financial statements for the Fund are presented separately within this report. |
Calculation of NAV and NAV per Share | 2.2. Calculation of NAV and NAV per Share The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the bitcoin held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CF Benchmarks Index shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the bitcoin held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. |
Valuation | 2.3. Valuation The Fund’s financial statements are prepared in accordance GAAP for financial information. Bitcoin is priced at 11:59:59PM ET. With respect to the Fund’s bitcoin holdings, the Trust will follow the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilize an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for bitcoin as of the Fund’s financial statement measurement date. ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. On March 31, 2024, the value of the bitcoin held by the Fund is categorized as Level 1. The cost basis of the investment in bitcoin recorded by the Trust on behalf of the Fund for financial reporting purposes is the fair value of bitcoin at the time of transfer. |
Fees, Expenses and Realized Gain (Loss) | 2.4. Fees, Expenses and Realized Gain (Loss) The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, Marketing Agent, the Custodians and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor will also pay the costs of the Fund’s organization and the initial offering costs and may not seek reimbursement of such costs. The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Fund will sell bitcoin as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any bitcoin network fees or other similar transaction fees, in connection with any sales of bitcoin necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any bitcoin network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For a period from January 12, 2024 to August 2, 2024, the Sponsor will waive a portion of the Sponsor’s Fee so that the Sponsor’s Fee after the fee waiver will be equal to 0.00% of the net asset value of the Fund for the first $10.0 billion of the Fund’s assets. Prior to the implementation of the waiver, for the one day period January 11, 2024, the Fund accrued the Sponsor fee of 0.29% ($21). For the period January 11, 2024 to March 31, 2024, the F . of The Sponsor is not required to pay any extraordinary or non-routine non-recurring non-routine (including, for example, in connection with any fork of the bitcoin blockchain, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, Bitcoin Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell bitcoin to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of bitcoin held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell bitcoin to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of bitcoin represented by each Share. To cover the Sponsor’s fee and expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Fund to convert bitcoin into U.S. dollars generally at the price available through the Prime Broker’s Coinbase Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts. The number of bitcoins represented by a Share will decline each time the Fund pays the Sponsor’s fee or any Fund expenses not assumed by the Sponsor by transferring or selling bitcoins. The quantity of bitcoins to be sold to permit payment of the Sponsor’s fee or Fund expenses not assumed by the Sponsor, will vary from time to time depending on the level of the Fund’s expenses and the value of bitcoins held by the Fund. |
Income Taxes | 2.5. Income Taxes The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gain, losses, and expenses will “flow through” to the shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2024, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. |
Creation and Redemption of Shares | 2.6. Creation and Redemption of Shares The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of bitcoin represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the bitcoin represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of bitcoin has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Bitcoin Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive bitcoin as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving bitcoin as part of the creation or redemption process. The Fund will create Shares by receiving bitcoin from a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to deliver the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the bitcoin to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the bitcoin to the Fund. The Fund will redeem shares by delivering bitcoin to a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to receive the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the bitcoin from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the bitcoin from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. Creation Units will be sold at a per-Share Changes in the Shares for the period from January 11, 2024 (Commencement of operations) to March 31, 2024 are as follows: Shares Amount Balance at January 11, 2024 * 100,000 $ 2,608,468 ^ Creation of Shares 8,250,000 278,015,474 Redemption of Shares — — Balance at March 31, 2024 8,350,000 $ 280,623,942 * The date represents commencement of operations. ^ On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affili ate of per-Share per-Share |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, 350-60): 2023-08”). 2023-08 2023-08 |
Franklin Bitcoin ETF [Member] | |
Basis of Presentation | 2.1. Basis of Presentation The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not required to register under such act. The financial statements are presented for the Trust, as the registrant, combined with the Fund (in a separate section of this report) and for the Fund individually. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series and these notes to the financial statements relate to the Fund individually. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. |
Calculation of NAV and NAV per Share | 2.2. Calculation of NAV and NAV per Share The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the bitcoin held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CF Benchmarks Index shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the bitcoin held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. |
Valuation | 2.3. Valuation The Fund’s financial statements are prepared in accordance GAAP for financial information. Bitcoin is priced at 11:59:59PM ET. With respect to the Fund’s bitcoin holdings, the Trust will follow the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilize an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for bitcoin as of the Fund’s financial statement measurement date. ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. On March 31, 2024, the value of the bitcoin held by the Fund is categorized as Level 1. The cost basis of the investment in bitcoin recorded by the Trust on behalf of the Fund for financial reporting purposes is the fair value of bitcoin at the time of transfer. |
Fees, Expenses and Realized Gain (Loss) | 2.4. Fees, Expenses and Realized Gain (Loss) The Fund’s only ordinary recurring expense is The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Fund will sell bitcoin as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any bitcoin network fees or other similar transaction fees, in connection with any sales of bitcoin necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any bitcoin network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For a period from January 12, 2024 to August 2, 2024, the Sponsor will waive a portion of the Sponsor’s Fee so that the Sponsor’s Fee after the fee waiver will be equal to 0.00% of the net asset value of the Fund for the first $10.0 billion of the Fund’s assets. Prior to the implementation of the waiver, for the one day period January 11, 2024, the Fund accrued the Sponsor fee of 0.29% ($21). For the period January 11, 2024 to March 31, 2024, the F . of The Sponsor is not required to pay any extraordinary or non-routine non-recurring non-routine indemnification of the Cash Custodian, Bitcoin Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell bitcoin to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of bitcoin held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell bitcoin to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of bitcoin represented by each Share. To cover the Sponsor’s fee and expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Fund to convert bitcoin into U.S. dollars generally at the price available through the Prime Broker’s Coinbase Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts. The number of bitcoins represented by a Share will decline each time the Fund pays the Sponsor’s fee or any Fund expenses not assumed by the Sponsor by transferring or selling bitcoins. The quantity of bitcoins to be sold to permit payment of the Sponsor’s fee or Fund expenses not assumed by the Sponsor, will vary from time to time depending on the level of the Fund’s expenses and the value of bitcoins held by the Fund. |
Income Taxes | 2.5. Income Taxes The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Fund itself is not subject to United States federal income tax. Instead, the Fund’s income, gain, losses, and expenses will “flow through” to the shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2024, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. |
Creation and Redemption of Shares | 2.6. Creation and Redemption of Shares The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of bitcoin represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the bitcoin represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of bitcoin has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Bitcoin Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive bitcoin as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving bitcoin as part of the creation or redemption process. The Fund will create Shares by receiving bitcoin from a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to deliver the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the bitcoin to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the bitcoin to the Fund. The Fund will redeem shares by delivering bitcoin to a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to receive the bitcoin. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the bitcoin from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the bitcoin from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. Creation Units will be sold at a per-Share Changes in the Shares for the period from January 11, 2024 (Commencement of operations) to March 31, 2024 are as follows: Shares Amount Balance at January 11, 2024 * 100,000 $ 2,608,468 ^ Creation of Shares 8,250,000 278,015,474 Redemption of Shares — — Balance at March 31, 2024 8,350,000 $ 280,623,942 * The date represents commencement of operations. ^ On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share per-Share |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, 350-60): 2023-08”). 2023-08 2023-08 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Line Items] | |
Summary of changes in shares | Changes in the Shares for the period from January 11, 2024 (Commencement of operations) to March 31, 2024 are as follows: Shares Amount Balance at January 11, 2024 * 100,000 $ 2,608,468 ^ Creation of Shares 8,250,000 278,015,474 Redemption of Shares — — Balance at March 31, 2024 8,350,000 $ 280,623,942 * The date represents commencement of operations. ^ On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affili ate of per-Share per-Share |
Franklin Bitcoin ETF [Member] | |
Accounting Policies [Line Items] | |
Summary of changes in shares | Changes in the Shares for the period from January 11, 2024 (Commencement of operations) to March 31, 2024 are as follows: Shares Amount Balance at January 11, 2024 * 100,000 $ 2,608,468 ^ Creation of Shares 8,250,000 278,015,474 Redemption of Shares — — Balance at March 31, 2024 8,350,000 $ 280,623,942 * The date represents commencement of operations. ^ On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share per-Share |
Financial Highlights (Tables)
Financial Highlights (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investment Company, Financial Highlights [Line Items] | |
Summary of Per Share Performance | For the period Net asset value per Share, beginning of year(a) $ 26.65 Net investment loss(b)(c) (0.00 ) Net realized and unrealized gain (loss) on investment in bitcoin 14.30 Net change in net assets from operations 14.30 Net asset value per Share, end of year $ 40.95 Total return, at net asset value(d)(e)(f) 53.66 % Ratio to average net assets Net investment loss(g) 0.00 % Gross expenses(g) 0.19 % Net expenses(g) 0.00 % * No comparative period presented as the Fund’s operations commenced on January 11, 2024. (a) The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial bitcoin seed creation transaction conducted on January 8, 2024. Prior to January 8, 2024, 4,000 shares were acquired on December 15, 2023 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were per-Share bitcoins). As of January 8, 2024, the net asset value of the Fund for transactions with Authorized Participants was $2,723,812.24 and the net asset value per Share of the Fund was $27.24. (b) Calculated using average Shares outstanding. (c) Amount is less than $.01. (d) Total return information based on net asset values calculated for transactions with Authorized Participants was Based on the change in net asset value of a Share for the period January 11, 2024 (Commencement of operations) to March 31, 2024. (e) Percentage is not annualized. (f) Certain adjustments were made to the net assets of the Fund at January 11, 2024 and at March 31, 2024 for financial reporting purposes. Accordingly, adjusted total returns disclosed in the Financial Highlights and total return information based on net asset values calculated for transactions with Authorized Participants differ. (g) Annualized based on the period from January 11, 2024 (Commencement of operations) to March 31, 2024. |
Franklin Bitcoin ETF [Member] | |
Investment Company, Financial Highlights [Line Items] | |
Summary of Per Share Performance | For the period Net asset value per Share, beginning of year(a) $ 26.65 Net investment loss(b)(c) (0.00 ) Net realized and unrealized gain (loss) on investment in bitcoin 14.30 Net change in net assets from operations 14.30 Net asset value per Share, end of year $ 40.95 Total return, at net asset value(d)(e)(f) 53.66 % Ratio to average net assets Net investment loss(g) 0.00 % Gross expenses(g) 0.19 % Net expenses(g) 0.00 % * No comparative period presented as the Fund’s operations commenced on January 11, 2024. (a) The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to th per-Share bitcoins). As of January 8, 2024, the net asset value of the Fund for transactions with Authorized Participants was $2,723,812.24 and the net asset value per Share of the Fund was $27.24. (b) Calculated using average Shares outstanding. (c) Amount is less than $.01. (d) Total return information based on net asset values calculated for transactions with Authorized Participants was Based on the change in net asset value of a Share for the period January 11, 2024 (Commencement of operations) to March 31, 2024. (e) Percentage is not annualized. (f) Certain adjustments were made to the net assets of the Fund at January 11, 2024 and at March 31, 2024 for financial reporting purposes. Accordingly, adjusted total returns disclosed in the Fihi and total return information based on net asset values calculated for transactions with Authorized Participants differ. (g) Annualized based on the period from January 11, 2024 (Commencement of operations) to March 31, 2024. See accompanying notes to the financial statements. |
Organization - Additional Info
Organization - Additional Information (Details) | 3 Months Ended | 4 Months Ended | ||||
Jan. 08, 2024 USD ($) Creationunits $ / shares shares | Dec. 15, 2023 USD ($) $ / shares shares | Sep. 06, 2023 Creationunits | Mar. 31, 2024 USD ($) Creationunits | Mar. 31, 2024 USD ($) Creationunits | ||
Nature Of Operations [Line Items] | ||||||
Date of incorporation | Sep. 06, 2023 | |||||
Security exchange name | CboeBZX | |||||
Threshold multiples in which shares are issued | Creationunits | 50,000 | |||||
Trading symbol | EZBC | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | ||||
Stock redeemed during the period value | $ 0 | |||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | |||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | |||||
BATS [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Security exchange name | CboeBZX | |||||
Initial Seed Shares [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | ||||
Investment company issuance of shares per share | $ / shares | $ 25 | |||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | ||||
Stock redeemed during the period value | $ 100,000 | |||||
Seed Creation Units [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Number of creation units | Creationunits | 2 | 2 | 2 | |||
Bitcoins [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Investment owned number of units | 58 | |||||
Purchase of investment in number of units | 58 | |||||
Bitcoins [Member] | Seed Creation Units [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Stock issued during the period shares new issues | shares | 58 | |||||
Number of bitcoins per creation unit | 29 | |||||
Number of bitcoins per share | 0.00058 | |||||
Common Stock [Member] | Seed Creation Units [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Stock issued during the period shares new issues | shares | 100,000 | |||||
Stock issued during the period value new issues | $ 100,000 | |||||
Franklin Bitcoin ETF [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Date of incorporation | Sep. 06, 2023 | |||||
Threshold multiples in which shares are issued | Creationunits | 50,000 | |||||
Trading symbol | EZBC | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | ||||
Stock redeemed during the period value | $ 0 | |||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | |||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | |||||
Franklin Bitcoin ETF [Member] | BATS [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Security exchange name | CboeBZX | |||||
Franklin Bitcoin ETF [Member] | Initial Seed Shares [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | ||||
Investment company issuance of shares per share | $ / shares | $ 25 | |||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | ||||
Stock redeemed during the period value | $ 100,000 | |||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Number of creation units | Creationunits | 2 | |||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Investment owned number of units | 58 | |||||
Purchase of investment in number of units | 58 | |||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | Seed Creation Units [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Stock issued during the period shares new issues | shares | 58 | |||||
Number of bitcoins per creation unit | 29 | |||||
Number of bitcoins per share | 0.00058 | |||||
Franklin Bitcoin ETF [Member] | Common Stock [Member] | Seed Creation Units [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Stock issued during the period shares new issues | shares | 100,000 | |||||
Stock issued during the period value new issues | $ 100,000 | |||||
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Jan. 11, 2024 | ||
Accounting Policies [Line Items] | |||
Sponsor's fee rate | 0.19% | ||
Accounts payable | [1] | $ 21 | |
Sponsor's Fee | [1] | 54,280 | |
Waiver and reimbursement | [1] | 54,259 | |
Net investment loss | [1] | $ 21 | |
Franklin Bitcoin ETF [Member] | |||
Accounting Policies [Line Items] | |||
Sponsor's fee rate | 0.19% | ||
Accounts payable | [1] | $ 21 | |
Sponsor's Fee | [1] | 54,280 | |
Waiver and reimbursement | [1] | 54,259 | |
Net investment loss | [1] | 21 | |
Sponsor [Member] | Ordinary Fees And Expenses Incurred By The Fund [Member] | |||
Accounting Policies [Line Items] | |||
Amount of expenses agreed to be borne by the counterparty | 500,000 | ||
Other non recurring expenses threshold limit above which shall be borne by the fund | 500,000 | ||
Percentage of sponser fee before waiver | 0.29% | ||
Accounts payable | $ 21 | ||
Sponsor [Member] | Ordinary Fees And Expenses Incurred By The Fund [Member] | Franklin Bitcoin ETF [Member] | |||
Accounting Policies [Line Items] | |||
Amount of expenses agreed to be borne by the counterparty | 500,000 | ||
Other non recurring expenses threshold limit above which shall be borne by the fund | 500,000 | ||
Percentage of sponser fee before waiver | 0.29% | ||
Accounts payable | $ 21 | ||
Sponsor [Member] | Ordinary Fees And Expenses Incurred By The Fund [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Amount of expenses agreed to be borne by the counterparty | 500,000 | ||
Sponsor [Member] | Ordinary Fees And Expenses Incurred By The Fund [Member] | Minimum [Member] | Franklin Bitcoin ETF [Member] | |||
Accounting Policies [Line Items] | |||
Amount of expenses agreed to be borne by the counterparty | $ 500,000 | ||
Sponsor [Member] | Ordinary Fees And Expenses Incurred By The Fund [Member] | January 12, 2024 to August 2, 2024 [Member] | |||
Accounting Policies [Line Items] | |||
Fees as a percentage of net asset value of the fund after waiver | 0% | ||
Initial value of the funds assets on the basis of which fees is determined | $ 10,000,000,000 | ||
Sponsor [Member] | Ordinary Fees And Expenses Incurred By The Fund [Member] | January 12, 2024 to August 2, 2024 [Member] | Franklin Bitcoin ETF [Member] | |||
Accounting Policies [Line Items] | |||
Fees as a percentage of net asset value of the fund after waiver | 0% | ||
Initial value of the funds assets on the basis of which fees is determined | $ 10,000,000,000 | ||
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024. |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Changes in Shares (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) shares | ||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | ||
Beginning Balance (in Shares) | shares | 100,000 | [1] |
Beginning Balance | $ | $ 2,608,468 | [1],[2] |
Creation of Shares (in Shares) | shares | 8,250,000 | |
Creation of Shares | $ | $ 278,015,474 | |
Redemption of Shares (in Shares) | shares | 0 | |
Redemption of Shares | $ | $ 0 | |
Ending Balance (in Shares) | shares | 8,350,000 | |
Ending Balance | $ | $ 280,623,942 | |
Franklin Bitcoin ETF [Member] | ||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | ||
Beginning Balance (in Shares) | shares | 100,000 | [1] |
Beginning Balance | $ | $ 2,608,468 | [1],[2] |
Creation of Shares (in Shares) | shares | 8,250,000 | |
Creation of Shares | $ | $ 278,015,474 | [2] |
Redemption of Shares (in Shares) | shares | 0 | |
Redemption of Shares | $ | $ 0 | |
Ending Balance (in Shares) | shares | 8,350,000 | |
Ending Balance | $ | $ 280,623,942 | |
[1]The date represents commencement of operations.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Changes in Shares (Parenthetical) (Details) | 3 Months Ended | 4 Months Ended | |||
Jan. 08, 2024 USD ($) Creationunits $ / shares shares | Dec. 15, 2023 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) Creationunits | Mar. 31, 2024 USD ($) Creationunits | ||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Bitcoins [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Initial Seed Shares [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Seed Creation Units [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Number of creation units | Creationunits | 2 | 2 | 2 | ||
Seed Creation Units [Member] | Bitcoins [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Seed Creation Units [Member] | Common Stock [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Franklin Bitcoin ETF [Member] | Initial Seed Shares [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Number of creation units | Creationunits | 2 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | Bitcoins [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | Common Stock [Member] | |||||
Summary Of Changes In The Shares Issued And Outstanding [Line Items] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). |
Related Parties - Additional In
Related Parties - Additional Information (Details) - Sponsor [Member] | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Related Party Transaction [Line Items] | |
Related party transaction, amounts of transaction | $ | $ 500,000 |
Frankin Resources Inc [Member] | |
Related Party Transaction [Line Items] | |
Number of shares held by related party | shares | 1,010,000 |
Franklin Bitcoin ETF [Member] | |
Related Party Transaction [Line Items] | |
Related party transaction, amounts of transaction | $ | $ 500,000 |
Franklin Bitcoin ETF [Member] | Frankin Resources Inc [Member] | |
Related Party Transaction [Line Items] | |
Number of shares held by related party | shares | 1,010,000 |
Financial Highlights - Summary
Financial Highlights - Summary of Per Share Performance (Details) | 3 Months Ended | |
Mar. 31, 2024 $ / shares | [1] | |
Net asset value per Share, beginning of year | $ 26.65 | [2] |
Net investment loss | 0 | [3],[4] |
Net realized and unrealized gain (loss) on investment in bitcoin | 14.3 | |
Net change in net assets from operations | 14.3 | |
Net asset value per Share, end of year | $ 40.95 | |
Total return, at net asset value | 53.66% | [5],[6],[7] |
Ratio to average net assets | ||
Net investment loss | 0% | [8] |
Gross expenses | 0.19% | [8] |
Net expenses | 0% | [8] |
Franklin Bitcoin ETF [Member] | ||
Net asset value per Share, beginning of year | $ 26.65 | [2] |
Net investment loss | 0 | [3],[4] |
Net realized and unrealized gain (loss) on investment in bitcoin | 14.3 | |
Net change in net assets from operations | 14.3 | |
Net asset value per Share, end of year | $ 40.95 | |
Total return, at net asset value | 53.66% | [6],[7],[9] |
Ratio to average net assets | ||
Net investment loss | 0% | [8] |
Gross expenses | 0.19% | [8] |
Net expenses | 0% | [8] |
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial bitcoin seed creation transaction conducted on January 8, 2024. Prior to January 8, 2024, 4,000 shares were acquired on December 15, 2023 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). As of January 8, 2024, the net asset value of the Fund for transactions with Authorized Participants was $2,723,812.24 and the net asset value per Share of the Fund was $27.24.[3]Amount is less than $.01.[4]Calculated using average Shares outstanding.[5]Certain adjustments were made to the net assets of the Fund at January 11, 2024 and at March 31, 2024 for financial reporting purposes. Accordingly, adjusted total returns disclosed in the Financial Highlights and total return information based on net asset values calculated for transactions with Authorized Participants differ.[6]Percentage is not annualized.[7]Total return information based on net asset values calculated for transactions with Authorized Participants was 51.61%. Based on the change in net asset value of a Share for the period January 11, 2024 (Commencement of operations) to March 31, 2024.[8]Annualized based on the period from January 11, 2024 (Commencement of operations) to March 31, 2024.[9]Certain adjustments were made to the net assets of the Fund at January 11, 2024 and at March 31, 2024 for financial reporting purposes. Accordingly, adjusted total returns disclosed in the Fihi and total return information based on net asset values calculated for transactions with Authorized Participants differ. |
Financial Highlights - Summar_2
Financial Highlights - Summary of Per Share Performance (Parenthetical) (Details) | 3 Months Ended | 4 Months Ended | |||
Jan. 08, 2024 USD ($) Creationunits $ / shares shares | Dec. 15, 2023 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) Creationunits $ / shares | Mar. 31, 2024 USD ($) Creationunits $ / shares | ||
Financial Highlights [Line Items] | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Percentage of net asset return values | 51.61% | ||||
Net investment loss | $ / shares | [1],[3],[4] | $ 0 | |||
Net asset | [1] | $ 341,901,105 | $ 341,901,105 | ||
Net asset value per share | $ / shares | [1] | $ 40.95 | $ 40.95 | ||
Minimum [Member] | |||||
Financial Highlights [Line Items] | |||||
Net investment loss | $ / shares | $ 0.01 | ||||
Bitcoins [Member] | |||||
Financial Highlights [Line Items] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Net asset | $ 2,723,812.24 | ||||
Net asset value per share | $ / shares | $ 27.24 | ||||
Initial Seed Shares [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Seed Creation Units [Member] | |||||
Financial Highlights [Line Items] | |||||
Number of creation units | Creationunits | 2 | 2 | 2 | ||
Seed Creation Units [Member] | Common Stock [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
Seed Creation Units [Member] | Bitcoins [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
Franklin Bitcoin ETF [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period value new issues | [1],[2] | $ 278,015,474 | |||
Stock redeemed during the period value | $ 0 | ||||
Per share cost of investment invesment company | $ / shares | $ 44,973.58 | ||||
Payment for purchase of investment operating activity | $ 2,608,467.81 | ||||
Percentage of net asset return values | 51.61% | ||||
Net investment loss | $ / shares | [1],[3],[4] | $ 0 | |||
Net asset | [1] | $ 341,901,105 | $ 341,901,105 | ||
Net asset value per share | $ / shares | [1] | $ 40.95 | $ 40.95 | ||
Franklin Bitcoin ETF [Member] | Minimum [Member] | |||||
Financial Highlights [Line Items] | |||||
Net investment loss | $ / shares | $ 0.01 | ||||
Franklin Bitcoin ETF [Member] | Bitcoins [Member] | |||||
Financial Highlights [Line Items] | |||||
Investment owned number of units | 58 | ||||
Purchase of investment in number of units | 58 | ||||
Net asset | $ 2,723,812.24 | ||||
Net asset value per share | $ / shares | $ 27.24 | ||||
Franklin Bitcoin ETF [Member] | Initial Seed Shares [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period shares new issues | shares | 4,000 | 4,000 | |||
Investment company issuance of shares per share | $ / shares | $ 25 | ||||
Stock issued during the period value new issues | $ 100,000 | $ 100,000 | |||
Stock redeemed during the period value | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | |||||
Financial Highlights [Line Items] | |||||
Number of creation units | Creationunits | 2 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | Common Stock [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period shares new issues | shares | 100,000 | ||||
Stock issued during the period value new issues | $ 100,000 | ||||
Franklin Bitcoin ETF [Member] | Seed Creation Units [Member] | Bitcoins [Member] | |||||
Financial Highlights [Line Items] | |||||
Stock issued during the period shares new issues | shares | 58 | ||||
Number of bitcoins per creation unit | 29 | ||||
Number of bitcoins per share | 0.00058 | ||||
[1]No comparative period presented as the Fund’s operations commenced on January 11, 2024.[2]On December 15, 2023, prior to the commencement of the Fund’s operations, Franklin Resources, Inc., an affiliate of the Sponsor (the “Seed Capital Investor”) purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins).[3]Amount is less than $.01.[4]Calculated using average Shares outstanding. |