Item 8. Financial Statements and Supplementary Data
Item 8. Financial
Statements and Supplementary Data
The following summarized
(unaudited) quarterly financial information presents the results of operations
and other data for the period July 23, 2024 (Date of commencement of
operations) through March 31, 2025:
For the period July 23,
2024 (Date of
commencement of
operations) through
September 30, 2024*
Three Months ended
December 31, 2024
Three Months ended
March 31, 2025
For the period July 23,
2024 (Date of
commencement of
operations) through
March 31, 2025*
Net investment income (loss)
$ -
$ -
$ (8,924 )
$ (8,924 )
Net realized and change in unrealized gain (loss)
(6,971,976 )
8,501,878
(18,763,854 )
(17,233,952 )
Net increase (decrease) in net assets resulting from
operations
(6,971,976 )
8,501,878
(18,772,778 )
(17,242,876 )
Net increase (decrease) in Principal Market NAV^
(4.89 )
5.07
(11.03 )
(10.85 )
* On May 21, 2024, Franklin Resources
Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to
conditions, purchased 4,000 Shares at per-Share price equal to $25.00 (the
“Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21,
2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were
$100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000
and the Seed Capital Investor purchased two creation units in a cash
transaction comprised of a total of 100,000 Shares at a per-Share price based
on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760
ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale
of the Seed Creation Units were used by the Fund to purchase 760 ether at the
price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and
other costs incurred in connection with the conversion of the cash proceeds to
ether, which were paid by the Seed Capital Investor). Thus, the ultimate total
proceeds to the Fund from the sale of the Seed Creation Units were
$2,619,241.20 (an amount representing 760 ether). Further, the transaction and
other costs incurred in connection with the Seed Creation Units were paid by
the Seed Capital Investor and not borne by the Fund.
^ The Fund’s financial statements are
prepared in accordance GAAP for financial information. Ether is priced based on
the Principal Market Price at 11:59:59PM ET. The net asset values calculated for
transactions with Authorized Participants would differ from the net asset
values reported here.
Item 9. Changes in and Disagreements with
Accountants on Accounting and Financial Disclosure
None.
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