Grayscale Ethereum Classic Trust (ETC)

What they do

The Trust holds ETC and issues Shares in exchange for ETC deposits from accredited investors. It does not operate a redemption program, and Shares trade on OTCQX under the ticker ETCG. The Trust aims for Share value to track the Index Price of ETC less expenses, but has historically traded at premiums or discounts to NAV. The Sponsor is Grayscale Investments Sponsors, LLC (GSIS), a subsidiary of Digital Currency Group, Inc., and Coinbase Custody Trust Company is the custodian.

Revenue drivers

• Share creations (deposits of ETC) — The Trust generates no operating revenue; it issues Shares in exchange for ETC deposits. Creation activity is the primary source of asset growth and the basis for the Sponsor's Fee.
• Sponsor's Fee (ETC) — The Trust pays the Sponsor's Fee in ETC, which is the only ongoing expense deducted from assets. The fee amount is calculated based on NAV and is settled periodically in ETC.
• ETC price appreciation — Net income is driven by unrealized and realized gains/losses on ETC holdings, reflecting changes in ETC's market price. This is the principal source of Trust profitability.

Recent performance

For the year ended December 31, 2025, the Trust reported a net loss of $157.1 million, following net income of $29.1 million in 2024. As of June 30, 2026, total assets were $75.3 million with zero liabilities. The Trust held approximately 7% of ETC in circulation as of December 31, 2025, and each Share represented approximately 0.7850 ETC. The Trust continues to trade at premiums or discounts to NAV due to the lack of a redemption program.

Strategy

The Trust is a passive vehicle with no investment strategy beyond tracking ETC price. It does not use leverage, derivatives, or similar arrangements. The Sponsor may dissolve the Trust if ETC is deemed a security. The Trust may implement a redemption program in the future, subject to SEC approval and Sponsor discretion.

Risks

• No redemption program — Shares are not redeemable, and creation halts may occur, eliminating arbitrage and causing prices to trade at substantial premiums or discounts to NAV.
• ETC regulatory classification — If ETC is determined to be a security, the Sponsor may dissolve the Trust or seek compliance with federal securities laws, potentially causing extraordinary expenses or termination.
• Price volatility and network risks — ETC's value is highly volatile and subject to risks inherent in the Ethereum Classic Network, including potential bugs, attacks, or forks that could impair the digital asset.
• Limited governance rights — ETC ownership confers no governance rights, and the Trust cannot influence network development, leaving it exposed to decisions made by other stakeholders.

Outlook

Management does not provide formal guidance. The Trust's future performance is tied directly to ETC market prices and the continued operation of the Ethereum Classic Network. The Sponsor may seek to launch a redemption program, but no assurance of approval or timing is given. The Trust will continue to hold ETC passively and may halt creations if deemed necessary.