Grayscale Investments

STAMFORD, Conn., July 17, 2024 (GLOBE NEWSWIRE) — Grayscale Investments®, the world’s largest crypto asset manager*, offering over 20 cryptocurrency investment products, previously announced that it has set July 18, 2024 (the “Record Date”) as the date for the initial creation and distribution of shares of Grayscale Ethereum Mini Trust (the “ETH Trust”) to shareholders of Grayscale Ethereum Trust (ticker: ETHE) (“ETHE”) (referred to as the “Initial Distribution”). Grayscale intends to list the ETH Trust on NYSE Arca, subject to required regulatory approvals, under the ticker symbol “ETH.” View this press release here.

Today, Grayscale confirms that as of July 18, 2024, any person purchasing ETHE shares will not be entitled to receive ETH shares in the initial distribution.

In addition, Grayscale currently anticipates that the distribution date will be July 23, 2024, following (i) the filing and effectiveness of the ETH Trust’s registration statement on Form 8-A to register the ETH Shares under the Exchange Act, (ii) the effectiveness of the ETH Trust’s registration statement on Form S-1 (Registration No. 333-278878) under the Securities Act, and (iii) approval of the listing of the ETH Shares on NYSE Arca. No assurance can be given that the initial distribution will occur on Grayscale’s anticipated schedule, and Grayscale will keep the market informed as its expectations change.

*By AUM as of 07/15/2024

NO OFFER OR SOLICITATION
This communication is for informational purposes only, in your capacity as a shareholder of ETHE, and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No shareholder approval of the initial distribution is required by applicable law, and we are not seeking approval of ETHE shareholders.

FORWARD-LOOKING STATEMENTS
Some of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on Grayscale’s beliefs and assumptions and involve known and unknown risks and uncertainties that could cause actual events to differ materially from those expressed or implied in such statements. Grayscale undertakes no obligation to update any forward-looking statements contained herein and you should not place undue reliance on these statements, which speak only as of the date hereof. Although Grayscale has taken reasonable precautions to ensure that the information contained herein is accurate, no representation or warranty (including liability to third parties), express or implied, is made by Grayscale as to its accuracy, reliability or completeness. You should not make any investment decision based on these forward-looking statements. No assurance can be given that the initial distribution will occur on the schedule anticipated by Grayscale, or at all.

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IMPORTANCE OF OBTAINING PROFESSIONAL TAX ADVICE
This communication is not intended to be, and does not constitute, tax advice. As more fully set forth in the section of the preliminary information statement filed by ETHE entitled “Material U.S. Federal Income Tax Consequences of the Initial Distribution,” the U.S. federal income tax consequences of the Initial Distribution are complex, subject to certain uncertainties, and may be affected by circumstances unique to a beneficial owner of ETHE Shares. Any beneficial owner of ETHE Shares who receives ETH Shares in the Initial Distribution, and any intermediary holding ETHE Shares or ETH Shares, should consult its own tax advisor regarding the U.S. federal income tax consequences of the Initial Distribution, including the appropriate allocation of the existing tax basis between the ETHE Shares and the ETH Shares. Please refer to the preliminary information statement filed by ETHE for more information, including other U.S. federal income tax considerations relating to the Initial Distribution and ownership of ETH Shares.

ADDITIONAL INFORMATION AND WHERE TO FIND IT
A definitive information statement on Schedule 14C will be provided to ETHE shareholders on or after the record date to inform ETHE shareholders of the initial distribution, in substantial compliance with Regulation 14C under the Exchange Act. The information statement will describe the Grayscale Ethereum Mini Trust, the risks associated with holding shares of the Grayscale Ethereum Mini Trust and other details regarding the initial distribution, and will be made available on our website at www.grayscale.com/documents#regulatoryfilingsETHE shareholders will not need to pay any consideration, exchange or dispose of existing ETHE shares, or take any other action to receive shares of the Grayscale Ethereum Mini Trust as part of the initial distribution.

ETHE is not a fund registered under the Investment Company Act of 1940 and is not subject to regulation under the Investment Company Act of 1940, unlike most mutual funds or ETFs.

Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust Risk Disclosure:
An investment in the Grayscale Ethereum Trust or the Grayscale Ethereum Mini Trust may be considered speculative and is not intended to be a complete investment program. An investment in ETHE or the Grayscale Ethereum Mini Trust should be considered by individuals who are financially capable of maintaining their investment and who can bear the risk of total loss associated with an investment in ETHE or the Grayscale Ethereum Mini Trust. The extreme volatility in trading prices that many digital assets, including Ether, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of ETHE and the Grayscale Ethereum Mini Trust and the shares of each trust could lose all or substantially all of their value. Digital assets represent a new and rapidly evolving industry. The value of ETHE and the Grayscale Ethereum Mini Trust depends on the acceptance of digital assets, the capabilities and development of blockchain technologies, and the fundamental investment characteristics of the digital asset. Digital asset networks are developed by a diverse set of contributors and the perception that certain high-profile contributors will no longer contribute to the network could have a negative effect on the market price of the relevant digital asset. Digital assets may be held by concentrated ownership and significant sales or distributions by holders of such digital assets could have a negative effect on the market price of such digital assets. The value of ETHE and the Grayscale Ethereum Mini Trust is directly linked to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors.

A registration statement relating to Grayscale Ethereum Mini Trust has been filed with the SEC but has not yet become effective. No investment in the Grayscale Ethereum Mini Trust may be made, nor money accepted, until the registration statement is effective. An investor should carefully consider the investment objectives, risks, and charges and expenses of the Grayscale Ethereum Mini Trust before investing. A preliminary prospectus containing information about Grayscale Ethereum Mini Trust may be obtained by sending an email to info@grayscale.comThe information contained in the preliminary prospectus is not complete and is subject to change. The final prospectus should be read carefully before investing and, when available, may be obtained from the same source. This communication does not constitute an offer to sell shares or a solicitation of an offer to buy shares in any state in which the offer or sale is not authorized.

Grayscale Investments, LLC is the sponsor of the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust.

About Grayscale Investments®
Grayscale connects investors to the digital economy through a suite of regulated, forward-thinking investment products. Founded in 2013, Grayscale has a proven track record and deep expertise as the world’s largest crypto asset manager. Investors, advisors and allocators turn to Grayscale for single-asset, diversified and thematic exposure. Certain Grayscale products are distributed by Grayscale Securities, LLC (member FINRA/SIPC) and certain products are managed by Grayscale Advisors, LLC.

Media Contact
Jennifer Rosenthal
press@grayscale.com

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