The Ultimate Guide To Buying Ethereum Investment Trust Shares

Grayscale Ethereum Trust (ETH) is a publicly traded investment vehicle that allows investors to gain exposure to Ethereum (ETH) in the form of securities. The trust's shares are traded on the OTCQX over-the-counter market under the ticker symbol ETHE. The trust's investment objective is for the value of its shares to reflect the value of the ETH held by the trust.

Grayscale Ethereum Trust is not an exchange-traded fund (ETF) and is not registered as an investment company under the Investment Company Act. The trust is not actively managed and does not attempt to outperform the price of ETH.

The Grayscale Ethereum Trust (ETH) is a publicly traded investment vehicle that holds Ethereum

The Grayscale Ethereum Trust (ETH) is an investment vehicle that holds Ethereum and is publicly traded on the NYSE Arca. It is one of the first securities to be solely invested in Ethereum and enables investors to gain exposure to Ethereum without the challenges of buying, storing, and safekeeping it. The Trust's shares are designed to track the Ethereum market price, less fees and expenses.

The Trust was created in 2017 and is sponsored by Grayscale, a leading crypto asset manager. It is not a fund registered under the Investment Company Act of 1940 and is therefore not subject to regulation under this Act. An investment in the Trust is subject to a high degree of risk and could result in significant volatility and loss of investment.

The Trust's investment objective is for its shares (based on ETH per share) to reflect the value of the Ethereum it holds, determined by reference to the Index Price, less the Trust's expenses and other liabilities. However, the Trust has not met this objective to date, and its shares have traded at a substantial premium over the value of the Ethereum it holds.

The Trust's shares are traded on the OTCQX and NYSE Arca. It has a 2.5% annual management fee, which includes all costs associated with the administration and safekeeping of the underlying Ethereum.

The Trust's investment objective is for the value of the shares to reflect the value of the ETH held by the Trust

The Investment Objective of the Grayscale Ethereum Trust

The investment objective of the Grayscale Ethereum Trust is for the value of its shares to reflect the value of the Ethereum (ETH) held by the Trust, less the Trust's expenses and other liabilities. The Trust issues shares, which represent ownership in the Trust, and are designed to track the market price of ETH, less fees and expenses.

The Trust's purpose is to hold ETH, which are digital assets created and transmitted through the operations of the peer-to-peer Ethereum Network, a decentralised network of computers that operates on cryptographic protocols.

The Trust's shares are quoted on the OTCQX under the ticker symbol "ETHE". The Trust's investment objective has not yet been met, and the shares quoted on OTCQX have not reflected the value of the Trust's ETH, less the Trust's expenses and other liabilities.

The Trust's shares are quoted on OTCQX under the ticker symbol ETHE

The Grayscale Ethereum Trust (Ticker: ETHE) is quoted on the OTCQX under the ticker symbol ETHE. The Trust's shares have been quoted on OTCQX since June 20, 2019. The Trust's investment objective is for the Shares (based on ETH per Share) to reflect the value of the ETH held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities.

The Trust's shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ETH. The Trust is not managed like a business corporation or an active investment vehicle. The Trust is not registered under the Investment Company Act of 1940 and is not subject to regulation under the Investment Company Act of 1940. An investment in ETHE is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.

The Trust's shares are available for purchase through brokerage accounts such as Fidelity, Schwab, and Robinhood. To invest, one can search for ETHE on their platform of choice.

The Trust's sponsor is Grayscale Investments, LLC

The Trusts sponsor is Grayscale Investments, LLC, a Delaware limited liability company formed on May 29, 2013. It is a wholly-owned subsidiary of Digital Currency Group, Inc. ("DCG"), with its principal place of business in Stamford, Connecticut. Grayscale Investments, LLC, is responsible for the day-to-day administration of the Trust and is in charge of preparing and providing annual and quarterly reports to investors. They also select and monitor the Trust's service providers.

As the sponsor, Grayscale Investments, LLC, plays a crucial role in the management and operations of the Trust. They are responsible for ensuring the smooth functioning of the Trust and making decisions that align with the Trust's investment objectives. The Trust's purpose is to hold Ethereum (ETH), which are digital assets created and transmitted through the Ethereum Network, a decentralised network of computers using cryptographic protocols.

Grayscale Investments, LLC, acts as the link between the Trust and its investors, providing them with regular updates on the Trust's performance and financial health. They also have the important task of selecting and overseeing the service providers that the Trust relies on, ensuring that the services provided are of the highest standard and meet the Trust's requirements.

Additionally, Grayscale Investments, LLC, is responsible for the Trust's reporting obligations, including the preparation of annual and quarterly reports. These reports provide investors and relevant parties with transparent information about the Trust's activities, financial position, and future plans. The Sponsor's role is vital in maintaining the Trust's compliance with regulatory requirements and ensuring that investors have access to the information they need to make informed decisions.

Grayscale Investments, LLC, as the Sponsor, also has the authority to make decisions regarding the continuation of the Trust. For example, if Bitcoin is determined to be a security under federal or state securities laws, the Sponsor may decide to terminate the Trust rather than comply with additional regulatory and registration requirements. This decision-making power demonstrates the significant influence Grayscale Investments, LLC, has on the direction and future of the Trust.

The Trust's trustee is Delaware Trust Company

The Trusts trustee is Delaware Trust Company. The Trust is a Delaware Statutory Trust that was formed on December 13, 2017, by filing the Certificate of Trust with the Delaware Secretary of State. The Trust's purpose is to hold Ethereum, which are digital assets that are created and transmitted through the operations of the peer-to-peer Ethereum Network. The Trust issues Shares, which represent ownership in the Trust. The Shares are quoted on OTCQX under the ticker symbol "ETHE".

The Trust's investment objective is for the Shares (based on ETH per Share) to reflect the value of the ETH held by the Trust, determined by reference to the Index Price, less the Trust's expenses and other liabilities. The Trust's ETH are held by the Custodian on behalf of the Trust. The Trust's ETH will be transferred out of the Digital Asset Account only to pay the Sponsor's Fee or any Additional Trust Expenses, sold on an as-needed basis to pay Additional Trust Expenses, or sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.

The Trust does not currently operate a redemption program for Shares and therefore, Shares are not redeemable by the Trust. In addition, the Trust may halt creations for extended periods of time for a variety of reasons, including in connection with forks, airdrops, and other similar occurrences.

Frequently asked questions