21Shares Core Ethereum ETF Releases 10-Q Report

21Shares Core Ethereum ETF, a Delaware statutory trust designed to track the performance of ether, has released its latest Form 10-Q report. The report provides insights into the Trust's financial position and operational highlights, focusing on its investment strategy, share issuance, and future outlook.

Financial Highlights

The provided SEC filing 10-Q does not contain the specific financial metrics typically found in a Condensed Consolidated Statements of Income, such as Revenue, Gross Profit, Operating Income, Net Income, or Net Income Per Share. The document focuses on the financial position and operations of the 21Shares Core Ethereum ETF, which primarily involves the valuation and management of ether investments. As such, the relevant financial metrics for a traditional income statement are not applicable or provided in this context.

Business Highlights

Trust Overview

The 21Shares Core Ethereum ETF is a Delaware statutory trust formed to track the performance of ether, adjusted for expenses and liabilities. It operates as an exchange-traded fund (ETF) and is not registered as an investment company or a commodity pool.

Investment Objective

The Trust aims to track the performance of ether using the CME CF Ether-Dollar Reference Rate—New York Variant. It holds ether at custodians and values its shares daily based on this index.

Sponsor's Role

21Shares US LLC serves as the Sponsor, managing and controlling the Trust. The Sponsor also acted as the Seed Capital Investor, purchasing initial shares to provide capital for the Trust's operations.

Share Issuance and Trading

Shares are issued in Creation Units of 10,000 or multiples thereof and are traded on the Cboe BZX Exchange under the ticker symbol 'CETH'. The Trust issues shares in exchange for cash.

Sponsor Fee Waiver

The Sponsor has waived the entire Sponsor Fee for a six-month period starting July 23, 2024, or until the Trust's assets reach $500 million, whichever comes first.

Operational Expenses

The Trust's ordinary recurring expense is the Sponsor Fee, which covers various operational costs. Extraordinary expenses are not covered by the Sponsor and will be borne by the Trust.

Liquidity and Capital Resources

The Trust is not aware of any trends or uncertainties that could materially change its liquidity needs. It plans to sell ether as needed to cover operational expenses.

Future Outlook

The Trust does not anticipate significant changes in its operations or liquidity needs in the near future, maintaining its focus on tracking ether's performance.

SEC Filing: 21Shares Core Ethereum ETF Releases [ CBOE:CETH ] - 10-Q - Nov. 12, 2024