Grayscale Investments

Grayscale Investments®’s new ETPs have launched on NYSE Arca under the symbols “ETH” and “ETHE”

STAMFORD, Conn., July 23, 2024 (GLOBE NEWSWIRE) — Grayscale Investments®the world’s largest crypto asset manager*, offering over 20 crypto investment products, today announced that Grayscale Ethereum Trust (Ticker: ETHE) and Grayscale Ethereum Mini Trust (Ticker: ETH) have begun trading on NYSE Arca starting at 4:00 a.m. ET today as Ethereum spot ETPs following recent regulatory approval by the U.S. Securities and Exchange Commission (SEC). The launch and commencement of trading for ETH and ETHE represents a groundbreaking achievement for Grayscale’s clients and the broader Ethereum community.

Grayscale Ethereum Mini Trust (“ETH”) and Grayscale Ethereum Trust (“ETHE”) are not registered funds under the Investment Company Act of 1940 and are not subject to regulation under the Investment Company Act of 1940, unlike most mutual funds or ETFs. Investing involves substantial risks, including possible loss of principal. Trusts may not be suitable for all investors.

ETHE has become the largest spot Ethereum ETP with $9.19 billion in AUM as of July 23, 2024, and has come to market with an established and diversified investor base across retail and institutional investors.

ETH launched today as a low-fee spot Ethereum ETP** through the innovative seeding mechanics by distributing 10% of ETHE’s underlying Ethereum. As such, ETH began trading as the second-largest spot Ethereum ETP*, with a uniquely diversified investor base and $1.02 billion in assets under management as of July 22, 2024. The ETHE distribution event is colloquially known as a “spin-off” and is a corporate action that is not expected to be a taxable event for ETHE or any beneficial owner of ETHE shares as of the transaction date. previously announced Record date of July 18, 2024. Investors are encouraged to consult a tax advisor for related tax advice.

“The Grayscale team couldn’t be more excited that ETH and ETHE will begin trading today as Ethereum Spot ETPs on NYSE Arca,” said David LaValle, Senior Managing Director and Global Head of ETFs at Grayscale. “Ethereum Spot ETPs will provide U.S. investors, financial professionals, and asset allocators with reliable and convenient access to Ethereum for the first time in the familiar and proven ETP wrapper. This is a significant milestone for investors and the ETF market, and demonstrates Grayscale’s continued commitment to advancing digital asset investing in the U.S..”

Grayscale remains committed to meeting the growing investor and market demand for Ether by expanding its suite of Ethereum-focused investment products – aiming to create a suite of products that can meet the unique needs of investors at every stage of their Ether investment journey. Grayscale has been and remains resolutely focused on working constructively with its investors, partners, regulators and policymakers to help deepen the understanding of Ethereum and the Ethereum Fee Protocol to broaden familiar access to the second-largest crypto asset by market cap***.

The story continues

“ETH and ETHE will enable investors to invest in Ethereum’s potential to create markets, transform financial systems, leverage decentralized finance (DeFi), and drive innovation through the trusted ETP wrapper – without the need to purchase, store, or manage Ethereum directly,” said John Hoffman, Grayscale’s Managing Director and Head of Distribution and Strategic Partnerships. “Client demand is growing as the crypto asset class matures, and Grayscale is proud to deliver pioneering financial products that provide our clients with choice when considering convenient, registered exposure to crypto assets, like Ethereum.”

For more information about ETH, please visit: https://etfs.grayscale.com/eth For more information about ETHE, please visit: https://etfs.grayscale.com/ethe.

*By AUM as of July 22, 2024

**Low cost based on a 0% gross expense ratio for the first six months of trading on the first $2.0 billion. Once the fund reaches $2.0 billion in assets or after a 6-month waiver period, the fee will be 0.15%. Brokerage and other charges may still apply. See the prospectus for additional information on fee waiver.

*** By market capitalization as of July 22, 2024

NO OFFER OR SOLICITATION
This communication is for informational purposes only, in your capacity as an ETHE shareholder, 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 distribution is required by applicable law, and we are not seeking approval of ETHE shareholders.

ADDITIONAL INFORMATION AND WHERE TO FIND IT
A definitive information statement on Schedule 14C will be provided to ETHE shareholders for the purpose of informing ETHE shareholders of the 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 distribution, and will be made available on our website at www.grayscale.com/documents#regulatoryfilings. ETHE 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 in connection with the distribution.

Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Mini Trust (ETH) (collectively, the “Trusts”) have filed registration statements (including a prospectus) with the SEC for the offering to which this communication relates. Before investing, you should read the prospectuses in the registration statements and other documents the Trusts have filed with the SEC for more complete information about the Trusts and this offering. You may obtain these documents free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, the Trusts or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903-2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. Foreside Fund Services, LLC is the marketing agent for the Trusts.

Investing involves significant risks, including possible loss of principal. The Trust holds Ethereum; however, an investment in the Trust does not constitute a direct investment in Ethereum. There is no certainty that an active trading market for the shares will develop or be sustained, which would adversely affect the liquidity of the Trust’s shares.

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 Ethereum, 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 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 owners 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 ETH is directly linked to the value of the underlying digital asset, the value of which can 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 becomes 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 this and other 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 empowers investors to access the digital economy through a suite of 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’s private placements, public offerings and ETPs for single-asset, diversified and thematic exposure. Grayscale products are distributed by Grayscale Securities, LLC (member FINRA/SIPC).

Media Contact
Jennifer Rosenthal
press@grayscale.com

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