The Franklin Bitcoin ETF is a passive exchange-traded fund that holds bitcoin to track its market price. Sponsored by Franklin Templeton, the fund allows investors to gain exposure to bitcoin through standard brokerage accounts, removing the need to manage digital wallets or private keys. Each share represents fractional ownership of the bitcoin held by the fund. The business model relies on a recurring sponsor fee calculated as a percentage of the fund’s net asset value. Franklin Templeton uses this fee to cover almost all ordinary operating expenses, including custody, administration, and exchange listing fees. Because the fund generates no investment income, it must periodically sell bitcoin to pay these expenses, which gradually reduces the amount of bitcoin represented by each share. Revenue for the sponsor scales directly with the fund's assets under management, which are driven by bitcoin price movements and net investor inflows. Authorized participants, such as Goldman Sachs and JPMorgan, create or redeem shares in large blocks to keep the ETF's market price aligned with its net asset value. Coinbase Custody provides digital asset custody services, primarily using offline cold storage to secure the fund's holdings. The fund competes in a concentrated market of spot bitcoin ETFs, where differentiation is driven by fee rates, issuer brand recognition, and distribution scale.