Bitwise Ethereum ETF

What they do

The Trust's only digital asset holding is ether, and it seeks to mirror the performance of ether as measured by a pricing index. The Sponsor, Bitwise, manages the Trust and the Ether Custodian holds the ether. The Trust is structured as an emerging growth company and does not engage in staking or other yield-generating activities. It disclaims rights to forked assets and airdrops, which are abandoned to the Sponsor.

Revenue drivers

• Ether price appreciation — The Trust's net asset value and share price are driven almost entirely by changes in the market price of ether, the sole asset held.
• Sponsor fee — The Sponsor charges a management fee, paid in ether or cash, which reduces the Trust's net asset value and is the Trust's primary operating expense.
• Creation and redemption activity — Authorized participants create and redeem shares in-kind for ether, which affects the Trust's size and liquidity but does not generate revenue for the Trust itself.

Recent performance

For 2025, the Trust reported a net loss of $54.7 million. Operating cash flow was positive $6.1 million for 2025. As of June 30, 2026, total assets were $168.5 million and total liabilities were only $30,000. The Trust's financial results are dominated by unrealized gains or losses on its ether holdings.

Strategy

The Trust's stated strategy is to passively hold ether and track its price, without active trading or staking. The Sponsor has adopted procedures for hard forks that disclaim any Forked Assets in favor of the Sponsor. The Trust will not claim airdrops or other incidental rights. The Trust relies on the Sponsor's determination of which network is the canonical Ethereum network in the event of a fork.

Risks

• Ether price volatility — Extreme volatility in the price of ether could cause the Shares to lose all or substantially all of their value.
• Hard fork and forked asset risk — The Trust disclaims Forked Assets, so shareholders will not benefit from any value created by a fork, and the Sponsor's choice of canonical network may adversely affect share value.
• Regulatory and approval risk — The Trust would need regulatory approvals, including an amendment to its registration statement, before it could claim any forked asset or airdrop.
• Ethereum network scaling and security — Ongoing scalability challenges or a concentration of validation power (e.g., over 50%) could reduce demand for ether and harm the Trust's value.

Outlook

The Trust's outlook is tied directly to the price of ether and the performance of the Ethereum network. Management notes that transition to proof-of-stake and scalability upgrades may impact ether's market value. The Trust will continue to passively hold ether and does not intend to stake or claim forked assets.