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Form 10 Filing Goes Effective for Largest Ethereum Investment Vehicle

New York, Oct. 12, 2020 (GLOBE NEWSWIRE) — NEW YORK — October 12, 2020 — Grayscale Investments®, the world’s largest digital currency asset manager and sponsor of Grayscale® Ethereum Trust (OTCQX: ETHE) (the “Trust”), today announced that the Registration Statement on Form 10 that it filed with the Securities and Exchange Commission (“SEC”) on behalf of the Trust has become effective.

The Trust is now an SEC reporting company with its shares registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).*

The Trust is solely and passively invested in Ethereum. The shares of the Trust are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ETH.**

Now, the Trust is also the second digital currency investment vehicle to become an SEC reporting company, following Grayscale® Bitcoin Trust on January 21, 2020.

Additionally, accredited investors who own or purchase shares from the Trust’s private placement now have an earlier liquidity opportunity, as the statutory holding period of shares purchased through the private placement will be reduced from 12 months to 6 months, provided the other requirements under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), have been satisfied.***

The Trust will now file its quarterly and annual reports, including its financial statements, on Form 10-Qs and 10-Ks with the SEC, along with current reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act.

For more information, please refer to the Information Statement, the Form 10 filing, and Grayscale’s FAQ page.

*This voluntary filing should not be confused as an effort to classify Grayscale Ethereum Trust as an exchange-traded fund (ETF). The structure of the Trust will not change and it will continue to not operate a redemption program nor trade on a national securities exchange.  

**The Trust offers a private placement to accredited investors. The investment objective of the Trust is for the Shares (based on ETH per Share) to reflect the value of ETH held by the Trust, determined by reference to the Index Price (as defined in the Information Statement), less the Trust’s expenses and other liabilities.

To date, the Trust has not met its investment objective and the Shares quoted on OTCQX have not reflected the value of ETH held by the Trust, less the Trust’s expenses and other liabilities, but have instead traded at a substantial premium over such value.

***The holding period reduction would go effective after Grayscale Ethereum Trust has been a reporting company for at least 90 days and has satisfied the other requirements under Rule 144 of the Securities Act.

This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

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