What changed in this filing

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Item 1. Financial Statements

2026-08-11 compared with 2026-05-07 · 151 added, 120 removed, 224 unchanged (55% of the section changed)

2 unchanged sentences

Statement of Assets and Liabilities (Unaudited)

At March 31, 2026

Investment in ether, at fair value (a)

At June 30, 2026

Investment in ether, at fair value (a)(b)

$ 459,450,831

Sponsor’s fee payable

Receivable for investments sold

Receivable for capital shares sold

Staking income receivable

Sponsor’s fee, inclusive of Sponsor’s Staking Portion payable

Payable for capital shares redeemed

Total Liabilities

1 unchanged sentence

$ 459,401,748

Shares issued and outstanding (b)

Shares issued and outstanding (c)

Net asset value per Share (Note 2C)

Cost of investment in ether is $609,675,401.

As of June 30, 2026, 250,585 ether (representing 86.9% of the position) are staked with third party counterparties.

No par value, unlimited amount authorized.

1 unchanged sentence

iShares ® Staked Ethereum Trust ETF

Statement of Operations (Unaudited)

For the Period from January 14, 2026 (Date of Seeding) to March 31, 2026

Statements of Operations (Unaudited)

For the three months ended June 30, 2026 and the Period from January 14, 2026 (Date of Seeding) to June 30, 2026

Three Months Ended

June 30, 2026

For the Period

1 unchanged sentence

(Date of Seeding)

Sponsor’s fee

Investment Income

Staking income

$ 1,194,785 $ 1,194,785

Sponsor’s fee, inclusive of Sponsor’s Staking Portion

419,914 467,379

Sponsor’s fee waived

( 179,522 ) ( 196,572 )

Total expenses

Net investment loss

Net Realized and Unrealized Gain (Loss)

240,392 270,807

Net investment income

954,393 923,978

Net Realized and Unrealized loss

Net realized loss from:

Ether sold to pay expenses

( 13,274 ) ( 13,274 )

Ether sold for the redemption of Shares

) (b) ( 11,350,107

Ether sold for distributions

( 87,095 ) ( 87,095 )

Net realized loss

( 29,071 ) (c)

) (d) ( 11,450,476

Net change in unrealized appreciation/depreciation

Net realized and unrealized gain

Net increase in net assets resulting from operations

Net increase in net assets per Share (a)

Net increase in net assets per Share based on average shares outstanding during the period.

( 154,226,015 ) ( 150,224,570 )

Net realized and unrealized loss

( 165,647,420 ) ( 161,675,046 )

Net decrease in net assets resulting from operations

$ ( 164,693,027 ) $ ( 160,751,068 )

Net decrease in net assets per Share (a)

$ ( 7.73 ) $ ( 12.19 )

Net decrease in net assets per Share based on average shares outstanding during the period.

Includes $(2,770,669) of ether paid for the in-kind redemption of Shares.

Includes $(29,071) of realized losses.

Includes $(2,799,740) of ether paid for the in-kind redemption of Shares.

Includes $358,351 of realized gains and $(11,779,756) of realized losses.

Includes $358,351 of realized gains and $(11,808,827) of realized losses.

See notes to financial statements.

iShares ® Staked Ethereum Trust ETF

Statement of Changes in Net Assets (Unaudited)

For the Period from January 14, 2026 (Date of Seeding) to March 31, 2026

Statements of Changes in Net Assets (Unaudited)

For the three months ended June 30, 2026 and the Period from January 14, 2026 (Date of Seeding) to June 30, 2026

For the Period

9 unchanged sentences

Distributions for Shares redeemed

( 1,038,678 )

Net increase in net assets from capital share transactions

1 unchanged sentence

Net Assets at March 31, 2026

$ 409,810,664

Net investment income

Net realized loss

( 11,421,405 )

Net change in unrealized appreciation/depreciation

( 154,226,015 )

Net decrease in net assets resulting from operations

( 164,693,027 )

Distributions to Shareholders:

Decrease in net assets resulting from distributions to shareholders

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

( 57,643,715 )

Net increase in net assets from capital share transactions

Increase in net assets

Net Assets at June 30, 2026

$ 459,401,748

Shares issued and redeemed

1 unchanged sentence

Shares redeemed

( 2,600,000 )

Net increase in Shares issued and outstanding

2 unchanged sentences

Statement of Cash Flows (Unaudited)

For the Period from January 14, 2026 (Date of Seeding) to March 31, 2026

For the Period from January 14, 2026 (Date of Seeding) to June 30, 2026

For the Period

2 unchanged sentences

Cash Flows from Operating Activities

Net increase in net assets resulting from operations

Net decrease in net assets resulting from operations

$ ( 160,751,068 )

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

1 unchanged sentence

( 545,957,162 )

Net realized (gain) loss

Ether received for staking income ( 1,120,104 )

Proceeds from ether sold

Net realized loss

Net change in unrealized appreciation/depreciation

Change in operating assets and liabilities:

Staking income receivable

Sponsor’s fee payable

3 unchanged sentences

Proceeds from issuance of Shares

$ 545,970,826

Payments for Shares redeemed

( 3,583,551 )

Cash dividends paid to shareholders

Net cash provided by financing activities

$ 542,035,605

Net increase in cash

2 unchanged sentences

Supplemental disclosure of non-cash information:

Ethereum purchased for Shares issued

Ethereum paid for Shares redeemed

Ether purchased for Shares issued

$ 133,215,012

Ether paid for Shares redeemed

$ ( 22,556,398 )

See notes to financial statements.

1 unchanged sentence

Schedule of Investments (Unaudited)

At March 31, 2026

March 31, 2026

At June 30, 2026

June 30, 2026

288,417 $ 609,675,401 $ 459,450,831

3 unchanged sentences

$ 459,401,748

As of March 31, 2026, 153,136 ether with a fair value of $ 321,867,338 are staked with third -party counterparties.

As of June 30, 2026, 250,585 ether (representing 86.9 % of the position) are staked with third party counterparties.

See notes to financial statements.

1 unchanged sentence

Notes to Financial Statements (Unaudited)

March 31, 2026

June 30, 2026

The iShares Staked Ethereum Trust ETF (the “Trust”) was organized on November 19, 2025 as a Delaware statutory trust.

1 unchanged sentence

The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”).

The Bank of New York Mellon serves as the “Trust Administrator.” The Trust is governed by the provisions of the Trust Agreement (the “Trust Agreement”) executed by the Sponsor, the Trustee and Wilmington Trust, National Association, a national association (“Delaware Trustee”), as of February 5, 2026.

The Bank of New York Mellon serves as the “Trust Administrator.” The Trust is governed by the provisions of the Amended and Restated Trust Agreement (the “Trust Agreement”) executed by the Sponsor, the Trustee and Wilmington Trust, National Association, a national association (“Delaware Trustee”), as of February 5, 2026.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

25 unchanged sentences

Actual results could differ from those estimates.

Ether Custodian is responsible for safekeeping the ether owned by the Trust.

The Ether Custodian is responsible for safekeeping the ether owned by the Trust.

Anchorage Digital Bank N.A.

27 unchanged sentences

The Trust engages in Staking Activities with respect to a portion of its ether holdings in order to earn staking rewards.

No staking rewards were earned in the period ended March 31, 2026 due to extended staking queues.

As of June 30, 2026, the Trust earned $ 1,194,785 in staking rewards.

Under the Trust’s staking program, the Sponsor instructs the Ether Custodian to stake the Trust’s ether.

3 unchanged sentences

federal income tax purposes under current Internal Revenue Service guidance.

The Trust’s periodic financial statements may not utilize net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with U.S.

The Trust recognizes staking rewards as revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606” ).

Under the staking arrangements, the validator (e.g., the Ether Custodian or other staking provider) is considered the customer, as it receives access to the Trust’s staking capacity (i.e., the delegation of ether), which represents the Trust’s performance obligation.

In exchange, the Trust is entitled to staking rewards generated by the Ethereum protocol, net of validator and staking provider fees.

Staking rewards represent variable consideration, as the amount of rewards is not known until the applicable validation activities are completed, and the Trust receives rewards in its custodial account.

The contract term is the length of each staking epoch.

Staking rewards are recognized as revenue when the Trust satisfies its performance obligations (i.e., successfully validates blocks or transactions as determined by the protocol).

Staking rewards are received in ether, which represents non-cash consideration.

Because the Trust is not the principal to the block validation service, it does not control the full output of the reward-generating activity, and instead receives net staking rewards, after validator and staking provider fees are deducted.

As such, the Trust presents staking revenue net of validator and staking provider fees, reflecting only the portion of protocol rewards to which it is entitled.

Staking revenue is recorded as staking income on the Statements of Operations.

The Trust’s periodic financial statements may not utilize the net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with U.S.

Gain or loss on sales of ether is calculated on a trade date basis using the average cost method.

The following tables summarize activity in ether for the period from January 14, 2026 ( Date of Seeding) to March 31, 2026:

The following table summarizes activity in ether for the three months ended June 30, 2026:

Three Months Ended June 30, 2026

Beginning balance

194,989 $ 405,833,590 $ 409,835,035 $ —

Ether purchased (a)

126,711 273,515,403 273,515,403 —

Ether sold for the redemption of shares (b)

( 33,018 ) ( 69,087,258 ) ( 57,766,222 ) ( 11,321,036 )

Ether sold to pay expenses

( 67 ) ( 147,564 ) ( 134,290 ) ( 13,274 )

Ether sold for distributions

( 198 ) ( 438,770 ) ( 351,675 ) ( 87,095 )

Net realized loss

— — ( 11,421,405 ) —

Net change in unrealized appreciation/depreciation

— — ( 154,226,015 ) —

Ending balance

288,417 $ 609,675,401 $ 459,450,831 $ ( 11,421,405 )

Includes ether purchased in-kind for shares issued of $ 75,351,373 .

Includes ether paid in-kind for shares redeemed of $ 21,517,719 (Cost of ether paid was $ 24,288,388 and realized loss of ether paid was $ 2,770,669 ).

The following tables summarize activity in ether for the period from January 14, 2026 ( Date of Seeding) to June 30, 2026:

Period from January 14, 2026 (Date of Seeding)

to March 31, 2026

to June 30, 2026

Beginning balance

4 unchanged sentences

( 33,532 ) ( 70,155,007 ) ( 58,804,900 ) ( 11,350,107 )

Ether sold to pay expenses

( 67 ) ( 147,564 ) ( 134,290 ) ( 13,274 )

Ether sold for distributions

( 198 ) ( 438,770 ) ( 351,675 ) ( 87,095 )

Net realized loss

11 unchanged sentences

Cash and Cash Equivalents

Cash includes non-interest bearing, non-restricted cash maintained with one banking institution that does not exceed U.S.

Cash includes non-interest bearing, non-restricted cash maintained with one banking institution.

Cash in a bank deposit account, at times, may exceed U.S.

federally insured limits.

7 unchanged sentences

Staking Consideration received by the Trust from staking, net of the Staking fee, is intended to be distributed monthly but no less frequently than quarterly by the Trust.

Distributions are paid in U.S.

dollars and cannot be automatically reinvested in additional shares of the Trust.

Federal Income Taxes

1 unchanged sentence

Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of March 31, 2026 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of June 30, 2026 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Segment Reporting

1 unchanged sentence

The CODM has concluded that the Trust operates as a single operating segment since the Trust has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance.

The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statement.

The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statements.

Trust Expenses

The Sponsor’s fee is accrued daily at an annualized rate equal to 0.25 % of the net asset value of the Trust and is payable at least quarterly in arrears in U.S.

The aggregate fees payable by the Trust to the Sponsor consist of (i) the Sponsor’s fee, which accrues daily at an annualized rate equal to 0.25 % of the Trust’s net asset value and is subject to any applicable waiver, and (ii) the Sponsor’s Staking Portion of the Staking fee payable in connection with the Trust’s Staking Activities.

The Sponsor’s fee is payable at least quarterly in arrears in U.S.

dollars or in-kind or any combination thereof.

For the period ended March 31, 2026, the Sponsor’s fee was $ 47,465 .

The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time.

2 unchanged sentences

In the future, if the Sponsor decides to waive all or a portion of the Sponsor’s fee, Shareholders will be notified in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website.

For the period ended March 31, 2026, the amount waived was $ 17,050 .

The Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust:

2 unchanged sentences

To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust.

The Trust will pay a Staking fee to the Sponsor, which will include (i) remuneration for the Sponsor’s facilitation of Staking Activities pursuant to the Trust Agreement (the “Sponsor’s Staking Portion”) and (ii) the Prime Execution Agent’s share of Staking Consideration (including any amounts payable by the Prime Execution Agent to Staking Services Providers for their respective shares of the Trust’s Staking Consideration), in accordance with the Staking Services Agreement.

As of April 15, 2026, the Sponsor’s Staking Portion and the Prime Execution Agent’s share of such Staking Consideration (including any amounts payable by the Prime Execution Agent to Staking Services Providers in respect of their shares of the Staking Consideration) comprise an aggregate of 10 % of the gross Staking Consideration.

The Trust will retain the remainder of such gross Staking Consideration.

For the period ended March 31, 2026, there was no Sponsor’s Staking fee.

The Trust will pay a Staking fee to the Sponsor, which will include remuneration for the Sponsor’s facilitation of Staking Activities pursuant to the Trust Agreement (the “Sponsor’s Staking Portion”).

The Trust also pays a Staking fee for the Prime Execution Agent’s share of Staking Consideration (including any amounts payable by the Prime Execution Agent to Staking Services Providers for their respective shares of the Trust’s Staking Consideration), in accordance with the Staking Services Agreement.

For the period from January 14, 2026 ( Date of Seeding) to June 30, 2026, the aggregate Sponsor fee, including the Sponsor’s Staking Portion, was $ 467,379 and the amount waived was $196,572.

Related Parties

3 unchanged sentences

On February 18, 2026, the Seed Capital Investor purchased an additional 3,996,000 Shares.

As of March 31, 2026, affiliates of BlackRock, Inc., including the Seed Capital Investor, beneficially owned 4,000,000 Shares of the Trust, representing approximately 26.5 % of the Shares outstanding.

As of June 30, 2026, affiliates of BlackRock, Inc., including the Seed Capital Investor, beneficially owned 4,000,000 Shares of the Trust, representing approximately 17.9 % of the Shares outstanding.

Indemnification

2 unchanged sentences

The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries and agents shall be indemnified from the Trust and held harmless against any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement and incurred without their ( 1 ) willful misconduct, gross negligence or bad faith or ( 2 ) reckless disregard of their obligations and duties under the Trust Agreement.

The Trust has agreed that the Cash Custodian will only be responsible for any loss or damage suffered by the Trust as a direct result of the Cash Custodian’s negligence, fraud or willful default in the performance of its duties.

Pursuant to the applicable agreements with the Trust’s third -party service providers, the Trust has agreed to indemnify such service providers against certain claims, losses, liabilities and expenses, subject to the terms, conditions and limitations set forth therein.

The Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Trust, which cannot be predicted with any certainty.

7 unchanged sentences

Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the period from January 14, 2026 ( Date of Seeding) to March 31, 2026.

January 14, 2026 (Date of Seeding)

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended June 30, 2026 and the Period from January 14, 2026 ( Date of Seeding) to June 30, 2026.

Three Months Ended

June 30, 2026

For the Period

from January 14, 2026

(Date of Seeding)

Net asset value per Share, beginning of period

Net investment loss (a)

Net realized and unrealized gain (b)

Net increase in net assets from operations

Net investment income (a)

Net realized and unrealized loss (b)

Net decrease in net assets from operations

Distributions per share

Net asset value per Share, end of period

Total return, at net asset value (c)(d)(e)(f)

Total return, at net asset value (c)(d)(h)

Ratio to average net assets:

Net investment loss (g)

Net investment income (g)

Total expenses (g)

Total expenses after fees waived (g)

3 unchanged sentences

Percentage is not annualized.

For the period March 11, 2026 ( Effective Date) to March 31, 2026.

For the period January 14, 2026 to March 31, 2026, the Trust’s total return was 8.12 %.

For the period March 11, 2026 ( Effective Date) to June 30, 2026.

For the period January 14, 2026 to June 30, 2026, the Trust’s total return was ( 17.90 )%.

Percentage is annualized.

Where applicable, assumes the reinvestment of distributions.

Investment Valuation

9 unchanged sentences

Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

At March 31, 2026, the value of the ether held by the Trust is categorized as Level 1.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations.

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q.

The discussion and analysis that follows may contain statements that relate to future events or future performance.

In some cases, such forward‑looking statements can be identified by terminology such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology.

These statements are only predictions.

Actual events or results may differ materially.

These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances.

Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments.

Although the Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Sponsor cannot guarantee their accuracy.

Except as required by applicable disclosure laws, neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

The iShares Staked Ethereum Trust ETF (the “Trust”) is a Delaware statutory trust.

The Trust does not have any officers, directors, or employees, and is administered by the Trust Agreement dated as of February 5, 2026, among iShares Delaware Trust Sponsor LLC (the “Sponsor”), BlackRock Fund Advisors (the “Trustee”) and Wilmington Trust, National Association, a national association (the “Delaware Trustee”).

The Trust issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets.

The assets of the Trust consist primarily of ether held by a custodian on behalf of the Trust.

The Trust is a passive investment vehicle and seeks to reflect generally the performance of the price of ether and rewards from staking a portion of the Trust’s ether.

The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities.

The Trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of ether.

The Trust issues and redeems Shares only in aggregations of 40,000 Shares (a “Basket”) or integral multiples thereof, based on the quantity of ether attributable to each Share (net of accrued but unpaid Sponsor’s fee and any accrued but unpaid expenses or liabilities).

Only registered broker-dealers that have previously entered into an agreement with the Sponsor governing the terms and conditions of such issuance (such broker-dealer, the “Authorized Participants”), can place orders to receive Baskets in exchange for cash or ether.

Baskets may be redeemed by the Trust in exchange for an amount of ether corresponding to their redemption value or for the cash proceeds from selling the amount of ether corresponding to their redemption value.

In connection with cash creations and redemptions, the Trust engages in ether transactions for converting cash into ether (in association with purchase orders) and ether into cash (in association with redemption orders) by choosing, in its sole discretion, to trade directly with third parties (each, a “Ether Trading Counterparty”), who are not registered broker-dealers pursuant to written agreements between such Ether Trading Counterparties and the Trust, or choosing to trade through Coinbase Inc.

(the “Prime Execution Agent”) acting in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime Execution Agent Agreement.

Shares of the Trust trade on The Nasdaq Stock Market LLC (“NASDAQ”) under the ticker symbol ETHB.

The Trust engages in Staking Activities with respect to a portion of its ether holdings in order to earn staking rewards (“Staking Consideration”).

Under the Trust’s staking program, the Sponsor instructs the Ether Custodian to stake the Trust’s ether.

The Trust retains control of its ether throughout the staking process.

The delegation of ether for staking purposes does not constitute a sale, transfer, or other derecognition event, as control of the ether is not transferred to the validator or staking provider.

Staking Consideration received by the Trust from staking, net of the Staking fee, is intended to be distributed monthly but no less frequently than quarterly by the Trust.

Valuation of Ether ; The CF Benchmarks Index

On each day other than a Saturday or a Sunday, or a day on which NASDAQ is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m.

Eastern Time (“ET”), the Trust evaluates the ether held by the Trust as reflected by the CME CF Ether–Dollar Reference Rate – New York Variant for the ether – U.S.

Dollar trading pair (the “CF Benchmarks Index”) and determines the net asset value of the Trust and the net asset value per Share (“NAV”).

CF Benchmarks Index is calculated as of 4:00 p.m.

The CF Benchmarks Index is designed based on the IOSCO Principles for Financial Benchmarks and is a Registered Benchmark under the UK Benchmark Regulations (“BMR”).

The administrator of the CF Benchmarks Index is CF Benchmarks Ltd., a UK incorporated company, authorized and regulated by the Financial Conduct Authority of the UK as a Benchmark Administrator under the UK BMR.

The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs.

In exchange for a fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust.

As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s fee.

The Trust’s only source of liquidity is its sales of ether.

The Trust’s staking program seeks to maximize the portion of the Trust’s ether available for staking while controlling for liquidity and redemption risks.

To manage the liquidity and redemption risks associated with staking.

The Sponsor intends to maintain a reserve of unstaked ether to accommodate anticipated redemption activity.

Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States.

The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations.

These estimates and assumptions affect the Trust’s application of accounting policies.

A description of the valuation of ether, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position, is provided in the section entitled “Valuation of Ether; The CF Benchmark Index,” above.

In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies.

Results of Operations

The Period from January 14, 2026 (Date of Seeding) to March 31, 2026

On January 14, 2026, the Seed Capital Investor, an affiliate of the Sponsor, subject to conditions, purchased the Seed Creation Baskets, comprising 4,000 Shares at a per-Share price equal to $25.00.

Total proceeds to the Trust from the sale of the Seed Creation Baskets were $100,000.

On February 18, 2026, the Seed Capital Investor purchased the Seed Creation Baskets, comprising 3,996,000 Shares at a per-Share price equal to $25.00.

Total proceeds to the Trust from the sale of the Seed Creation Baskets were $99,900,000.

On February 18, 2026, the Trust purchased approximately 51,455 ether with the proceeds of the Seed Creation Baskets using the Prime Execution Agent.

With the above transaction on February 18, 2026, the Trust commenced operations and the Sponsor’s fee started accruing daily at an annualized rate equal to 0.25% of the net asset value of the Trust.

The Trust’s net asset value grew from $100,000 at January 14, 2026 to $409,810,664 at March 31, 2026.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 4,000 Shares at January 14, 2026 to 15,160,000 at March 31, 2026, a consequence of 15,200,000 Shares (380 Baskets) being created and 40,000 Shares (1 Basket) being redeemed during the period.

The increase in the Trust’s net asset value also benefited from an increase in the price of ether, which rose 8.15% from the Trust’s first ether purchase at a price of $1,943.44 on February 18, 2026 to $2,101.84 at March 31, 2026.

The 8.12% increase in the NAV for purposes of the Trust’s periodic financial statements (“Financial Statement NAV”) from $25.00 at January 14, 2026 to $27.03 at March 31, 2026 is directly related to the 8.15% increase in the price of ether.

The Financial Statement NAV increased slightly less than the price of ether on a percentage basis due to by the net Sponsor’s Fee, which was $30,415 for the period, or 0.03% of the Trust’s average weighted assets of $90,322,059 during the period.

The NAV of $29.99 on March 16, 2026 was the highest during the period, compared with a low during the period of $23.85 on February 23, 2026.

The net increase in net assets resulting from operations for the period ended March 31, 2026 was $3,941,959, resulting from an unrealized gain on investment in ether of $4,001,445, partially offset by a net realized loss of $29,071 from ether paid for the in-kind redemptions of Shares and a net investment loss of $30,415.

Other than the net Sponsor’s Fee of $30,415, the Trust had no expenses during the period.

Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

At June 30, 2026, the value of the ether held by the Trust is categorized as Level 1.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements