Franklin Crypto Trust Annual Report - How They Did This Year

I’ve put together this guide to help you understand how the Franklin Crypto Index ETF (ticker: EZPZ) performed during its first year. My goal is to cut through the complex financial language and give you the facts you need to decide if this fund is right for you.

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1. What does this fund do?

Think of this fund as a "basket" of digital assets. Instead of picking one winning cryptocurrency, this fund tracks the Franklin Crypto Market Index, which holds a variety of them. It’s a simple way to own a slice of the crypto market through your regular brokerage account. You avoid the technical headaches of digital wallets, private keys, and complex tax reporting. The fund earns money through a 0.85% annual management fee, which covers administrative, legal, and storage costs.

2. How did they perform this year?

The fund launched on January 15, 2025. They started with just Bitcoin and Ether, but they now hold eight assets, including XRP, Solana, Dogecoin, Cardano, Chainlink, and Stellar Lumens.

By December 31, 2025, the fund managed $450 million in assets. Bitcoin makes up 75% of the fund, Ether accounts for 14%, and the remaining 11% is split among the other six assets. Because this is a "passive" fund, it doesn't try to beat the market. It simply mirrors the index, which returned 42% in 2025.

3. Major wins and challenges

• The Win: The fund successfully grew from two coins to eight, increasing total assets by 180% since the first quarter. This gives you broader exposure to crypto while keeping the fund’s performance very close to the index it tracks.
• The Challenge: As a new fund, they are still building a track record. Operating expenses hit $3.8 million, though the sponsor covered most of these costs to keep fees competitive. Also, they rely entirely on Coinbase to keep assets safe. If the custodian suffers a security breach, it could hurt the fund’s ability to pay out cash or assets.

4. Financial health

The fund is a "trust," not a typical company. It carries no debt and doesn't earn "profit" in the traditional sense; it simply covers its costs through management fees. We measure its health by the value of each share, which grew from $20.00 at launch to $28.40 by year-end. As an "emerging growth company," the trust uses simpler financial reporting to save about $500,000 in annual compliance costs.

5. Key risks

• Volatility: Crypto prices swing wildly. If the crypto market drops 10%, your shares will likely drop by about 10%.
• Tracking Error: Fees and trading timing mean your share price may lag behind the index by up to 0.95% per year.
• Security: Assets are kept in "cold storage" (offline). This prevents hacking but creates "liquidity risk." If the market crashes, the fund might struggle to sell assets quickly to meet investor requests.
• Regulation: If the SEC changes rules on how it classifies assets like Cardano or Solana, the fund might be forced to sell them, which could create tax consequences for you.

6. Future outlook

The fund’s goal is to mirror its index accurately. They will continue to rebalance the basket every quarter—on the third Friday of March, June, September, and December—to keep the weightings accurate. Management may add more assets in 2026 if they meet the fund’s strict liquidity and legal standards.

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Final Thought for Investors: If you are looking for a hands-off way to gain exposure to a broad range of cryptocurrencies, EZPZ offers a straightforward, regulated path. However, because crypto remains a highly volatile asset class, it is best suited for portfolios where you can handle significant price swings. Before investing, consider whether the 0.85% management fee aligns with your long-term goals compared to holding individual assets yourself.