Grayscale Ethereum Staking ETF

What they do

The Trust holds Ether and, since October 6, 2025, stakes it through Coinbase Custody Trust Company and third-party providers to earn additional Ether as Staking Consideration. It issues and redeems Shares in Baskets of 10,000 Shares in exchange for Ether, with the investment objective of reflecting Ether's value per Share minus expenses. The Trust does not use leverage or derivatives and is managed by Grayscale Investments Sponsors, LLC.

Revenue drivers

• Ether price appreciation — The Trust's value is primarily driven by the Ether price; as of December 31, 2025, each Share represented approximately 0.0082 Ether, and the Trust held ~0.8% of circulating Ether.
• Staking Consideration — Since October 6, 2025, staked Ether earns additional Ether rewards, subject to Sponsor's Staking Fee and validator allocations; rewards fluctuate based on network conditions.
• Creation and redemption activity — The Trust issues or redeems Baskets for Ether, and the Sponsor's Fee is paid in Ether, which can generate realized gains or losses tied to Ether's price at settlement.

Recent performance

Annual net income swung from -$7.70B in 2022 to $3.11B in 2023 and $2.59B in 2024, then turned negative at -$618.8M in 2025. Operating cash flow was $3.63B in 2024 and $1.41B in 2025. As of June 30, 2026, total assets were $1.22B with liabilities of only $14,000.

Strategy

The Trust is a passive vehicle; management's stated strategy is to hold Ether and, since October 2025, stake it to earn Staking Consideration, which is retained or distributed to shareholders at the Sponsor's discretion. The Trust does not employ leverage or derivatives and relies on Coinbase Custody Trust Company for cold storage of private keys. It trades on NYSE Arca, provides daily NAV reporting, and uses the CoinDesk Ether Benchmark Rate for NAV calculations since April 1, 2026.

Risks

• Ether price volatility — The value of the Shares is directly tied to Ether's market price, which can be highly volatile and cause significant fluctuations in NAV.
• Regulatory risk on Ether classification — If Ether is determined to be a security under federal securities laws, the Sponsor may dissolve the Trust or seek to comply with the Investment Company Act, potentially causing extraordinary expenses.
• Staking operational and liquidity risks — Staked Ether may be inaccessible for un-staking periods, and third-party staking provider failures could reduce rewards or delay withdrawals.
• Custody and security risks — The Trust's Ether is held by a custodian; any breach, hack, or loss of private keys could result in permanent loss of assets.

Outlook

Management does not provide forward-looking earnings guidance. The Trust continues its staking program, though Staking Consideration is expected to be inconsistent. The Trust faces dissolution risk if Ether is deemed a security, and net income has been negative in 2025, reflecting Ether price weakness.