Franklin Ethereum Trust

Previous wording

The Fund issues Shares only to eligible financial institutions called Authorized Participants and only in one or more blocks of 50,000 Shares (“Creation Units”). Creation Units are redeemable only by Authorized Participants. Creation Units are issued and redeemed in exchange for cash. The Shares are listed and traded on the Exchange under the ticker symbol “EZET.” The market price of the Shares may be different than the Fund’s NAV per Share. The Fund issues Shares in Creation Units on a continuous basis at the applicable NAV per Share on the creation order date.

Current wording

The Fund issues and redeems Shares only to eligible financial institutions called Authorized Participants and only in one or more blocks of 50,000 Shares (“Creation Units”). Creation Units are redeemable only by Authorized Participants. As of the period covered by this report, Creation Units are issued and redeemed in exchange for cash. The Shares are listed and traded on the Exchange under the ticker symbol “EZET.” The market price of the Shares may be different than the Fund’s NAV per Share. The Fund issues and redeems Shares in Creation Units on a continuous basis at the applicable NAV per Share on the transaction order date.

Previous wording

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 or in-kind or any combination thereof. 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 ether as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any Ethereum network fees or other similar transaction fees, in connection with any sales of ether 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 Ethereum network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant.

Current wording

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 ether as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any Ethereum network fees or other similar transaction fees, in connection with any sales of ether 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 Ethereum network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant.

Previous wording

At September 30, 2025, the Custodian held 22,020.1883 ether on behalf of the Fund, with a market value of $90,961,875 (cost: $76,013,644) based on the Principal Market Price at quarter end.

Current wording

At December 31, 2025, the Custodian held 19,348.4650 ether on behalf of the Fund, with a market value of $57,494,931 (cost: $67,384,986) based on the Principal Market Price at quarter end.

Previous wording

For the three months ended to September 30, 2025, 1,800,000 Shares were issued in exchange for 13,665.9046 ether and 750,000 Shares were redeemed in exchange for 5,693.8940 ether. The Fund’s NAV per Share began the period at $18.99 and ended the period at $31.35. The 65.09% increase in the Fund's NAV from $18.99 at June 30, 2025 to $31.35 at September 30, 2025 is directly related to the 65.21% increase in the price of ether. The Fund’s NAV increased slightly less than the price of ether on a percentage basis due to the Sponsor’s fee of $36,550 for the period.

Current wording

For the three months ended to December 31, 2025, 450,000 Shares were issued in exchange for 3,415.0200 ether and 800,000 Shares were redeemed in exchange for 6,070.5184 ether. The Fund’s NAV per Share began the period at $31.35 and ended the period at $22.54. The 28.10% decrease in the Fund's NAV from $31.35 at September 30, 2025 to $22.54 at December 31, 2025 is directly related to the 28.06% decrease in the price of ether. The Fund’s NAV decreased slightly more than the price of ether on a percentage basis due to the Sponsor’s fee of $35,569 for the period.

Previous wording

For the six months ended to September 30, 2025, 2,250,000 Shares were issued in exchange for 17,083.8564 ether and 900,000 Shares were redeemed in exchange for 6,833.2633 ether. The Fund’s NAV per Share began the period at $13.94 and ended the period at $31.35. The 124.89% increase in the Fund's NAV from $13.94 at March 31, 2025 to $31.35 at September 30, 2025 is directly related to the 125.14% increase in the price of ether. The Fund’s NAV increased slightly less than the price of ether on a percentage basis due to the Sponsor’s fee of $49,943 for the period.

Current wording

For the nine months ended to December 31, 2025, 2,700,000 Shares were issued in exchange for 20,498.8764 ether and 1,700,000 Shares were redeemed in exchange for 12,903.7817 ether. The Fund’s NAV per Share began the period at $13.94 and ended the period at $22.54. The 61.69% increase in the Fund's NAV from $13.94 at March 31, 2025 to $22.54 at December 31, 2025 is directly related to the 61.95% increase in the price of ether. The Fund’s NAV increased slightly less than the price of ether on a percentage basis due to the Sponsor’s fee of $85,512 for the period.

Previous wording

Net realized and change in unrealized gain on investment in ether for the six months ended September 30, 2025, was approximately $34,093,182 which includes a net realized gain on investment in ether sold for redemptions of $2,907,325 and net change in unrealized appreciation on investment in ether of approximately $31,185,857. Net realized and change in unrealized gain on investment in ether for the period was driven by ether price appreciation from $1,834.80 per ether as of March 31, 2025 to $4,130.84 per ether as of September 30, 2025. Net increase in net assets resulting from operations was approximately $34,043,239 for the six months ended September 30, 2025, which consisted of the net realized and change in unrealized gain on investment in ether of $34,093,182 offset by the Sponsor Fee of $49,943. Net assets increased to approximately $90,925,327 on September 30, 2025. The increase in net assets primarily resulted from the aforementioned ether price movement, net capital share transactions of approximately $35,276,690, and a net increase resulting from operations of $34,043,239.

Current wording

Net realized and change in unrealized gain on investment in ether for the nine months ended December 31, 2025, was approximately $9,607,950 which includes a net realized gain on investment in ether sold for redemptions of $3,260,379 and net change in unrealized appreciation on investment in ether of approximately $6,347,571. Net realized and change in unrealized gain on investment in ether for the period was driven by ether price appreciation from $1,834.80 per ether as of March 31, 2025 to $2,971.55 per ether as of December 31, 2025. Net increase in net assets resulting from operations was approximately $9,522,438 for the nine months ended December 31, 2025, which consisted of the net realized and change in unrealized gain on investment in ether of $9,607,950 offset by the Sponsor Fee of $85,512. Net assets increased to approximately $57,484,440 on December 31, 2025. The increase in net assets primarily resulted from the aforementioned ether price movement, net capital share transactions of approximately $26,356,604, and a net increase resulting from operations of $9,522,438.

Previous wording

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 or in-kind or any combination thereof. 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 ether as needed to pay the Sponsor’s fee. From July 23, 2024 (the day the Shares were initially listed on the Exchange) to January 31, 2025, the Sponsor agreed to waive the entire Sponsor’s Fee on the first $10.0 billion of the Fund’s assets. In the future, if the Sponsor decides to waive all or a portion of the Sponsor’s Fee, Shareholders will be notified in a prospectus supplement or on the Sponsor’s website for the Fund.

Current wording

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 ether as needed to pay the Sponsor’s fee. From July 23, 2024 (the day the Shares were initially listed on the Exchange) to January 31, 2025, the Sponsor agreed to waive the entire Sponsor’s Fee on the first $10.0 billion of the Fund’s assets. In the future, if the Sponsor decides to waive all or a portion of the Sponsor’s Fee, Shareholders will be notified in a prospectus supplement or on the Sponsor’s website for the Fund.