What changed in this filing

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Item 1. Financial Statements

2025-08-13 compared with 2025-05-13 · 105 added, 92 removed, 335 unchanged (37% of the section changed)

2 unchanged sentences

STATEMENTS OF ASSETS AND LIABILITIES

Investment in ether, at fair value (cost $ 13,469,961 and $ 15,551,512 respectively)

Investment in ether, at fair value (cost $ 21,597,228 , $ 15,551,512 , respectively)

Sponsor fee payable

1 unchanged sentence

Commitments and contingent liabilities (Note 9)

$ 23,002 ,554

Net assets consists of

1 unchanged sentence

Accumulated earnings (loss)

( 5,474,903 )

Shares issued and outstanding, no par value, unlimited amount authorized

Net asset value per share

The accompanying notes are an integral part of the financial

The accompanying notes are an integral

part of the financial statements.

21SHARES CORE ETHEREUM ETF

SCHEDULES OF INVESTMENT

March 31, 2025 (Unaudited)

30, 2025 (Unaudited)

Investment in ether

2 unchanged sentences

December 31, 2024

% of Net Assets

Investment in ether

1 unchanged sentence

Liabilities in excess of other assets

The accompanying notes are an integral part of the financial statements.

The accompanying notes are an integral part

of the financial statements.

21SHARES CORE ETHEREUM ETF

STATEMENT OF OPERATIONS

Investment income

STATEMENTS OF OPERATIONS

(initial seed

creation date)

Total expenses

2 unchanged sentences

Realized and change in unrealized gain (loss)

Net realized loss on investment in ether sold for redemptions

( 3,476,102 )

Net change in unrealized depreciation on investment in ether

( 6,380,524 )

Net change in unrealized gain on Sponsor fee payable

Net realized gain (loss) on investment in ether sold for redemptions

Net realized gain (loss) on investment in ether sold to pay Sponsor fee

Net change in unrealized appreciation on investment in ether

Net realized and change in unrealized gain (loss)

( 9,855,103 )

Net decrease in net assets resulting from operations

$ ( 9,861,010 )

* No prior year comparative statement has been provided since the Trust did not have operations as of March 31, 2024.

Net increase (decrease) in net assets resulting from operations

The accompanying notes are an integral part

1 unchanged sentence

21SHARES CORE ETHEREUM ETF

STATEMENT OF CHANGES IN NET ASSETS

STATEMENTS OF CHANGES IN NET ASSETS

(initial seed

creation date)

Net assets, beginning of period

3 unchanged sentences

Net investment loss

Net realized loss on investment in ether sold for redemptions

( 3,476,102 )

Net change in unrealized depreciation on investment in ether

Net realized gain (loss) on investment in ether sold for redemptions

( 3,476,102 )

Net change in unrealized gain on Sponsor fee payable

Net realized gain (loss) on investment in ether sold to pay Sponsor fee

Net change in unrealized appreciation on investment in ether

Net assets, end of period

2 unchanged sentences

Shares redeemed

Net decrease in Shares issued and outstanding

* No prior year comparative statement has been provided since the Trust did not have operations as of March 31, 2024.

Net increase in Shares issued and outstanding

The accompanying notes are an integral part

18 unchanged sentences

The Trust is an exchange-traded

fund that issues units of beneficial interest (the “Shares”) representing fractional undivided beneficial interests in its

net assets that trade on the Cboe BZX Exchange, Inc.

fund that issues common units of beneficial interest (the “Shares”) representing fractional undivided beneficial interests

in its net assets that trade on the Cboe BZX Exchange, Inc.

(the “Exchange”).

28 unchanged sentences

acquired in connection with the Seed Creation Baskets is held by the one or more of the Custodians.

The statements of assets and

liabilities and schedules of investment on March 31, 2025, and the statement of operations, and changes in net assets for the three months

ended March 31, 2025, have been prepared on behalf of the Trust and are unaudited.

In the opinion of management of the Sponsor of the

Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of

operations for the period ended March 31, 2025, and for all interim periods presented have been made.

In addition, interim period results

are not necessarily indicative of results for a full-year period.

The statement of assets and

liabilities and schedule of investment on June 30, 2025, and the statements of operations, and changes in net assets for the three and

six months ended June 30, 2025, and for the period May 1, 2024 (initial seed creation date) through June 30, 2024, have been prepared

on behalf of the Trust and are unaudited.

In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal

recurring adjustments) necessary to present fairly the financial position and results of operations for the period ended June 30, 2025,

and for all interim periods presented have been made.

In addition, interim period results are not necessarily indicative of results for

a full-year period.

The fiscal year-end of the

60 unchanged sentences

Fair Value Measurement Using

March 31, 2025 (Unaudited)

June 30, 2025 (Unaudited)

Investment in ether

15 unchanged sentences

Fee in ether.

Calculation of Net Asset Value (“NAV”)

and NAV per Share

Calculation of NAV and NAV per Share

On each day other than when

1 unchanged sentence

(Eastern Time), the

net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value

of the ether and other assets held by the Trust.

The Trustee computes the NAV per Share by dividing the NAV of the Trust by the number

of Shares outstanding on the date the computation is made.

NAV of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the ether

and other assets held by the Trust.

The Trustee computes the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding

on the date the computation is made.

Federal Income Taxes

13 unchanged sentences

sold the pro rata share of the ether held in the Trust at the time of the sale and may recognize gain or loss on such sale.

has reviewed the tax positions as of March 31, 2025, and has determined that no provision for income tax is required in the Trust’s

has reviewed the tax positions as of June 30, 2025, and has determined that no provision for income tax is required in the Trust’s

financial statements.

Segment Reporting

Trust operates in one segment.

The segment derives its revenues from Trust investments made in accordance with the defined investment

strategy of the Trust, as prescribed in the Trust’s prospectus.

The Chief Operating Decision Maker (“CODM”) is the

The CODM monitors the operating results of the Trust.

The financial information that the CODM leverages to assess the segment’s

performance and to make decisions for the Trust’s single segment, is consistent with the financial information that is presented

within the Trust’s financial statements.

Segment assets are reflected on the accompanying Statements of Assets and Liabilities as Total assets and the only significant segment

expense, the Sponsor fee, is included in the accompanying Statement of Operations.

The Trust operates in one

The segment derives its revenues from Trust investments made in accordance with the defined investment strategy of the Trust,

as prescribed in the Trust’s prospectus.

The Chief Operating Decision Maker (“CODM”) is the Sponsor.

The CODM monitors

the operating results of the Trust.

The financial information that the CODM leverages to assess the segment’s performance and to

make decisions for the Trust’s single segment, is consistent with the financial information that is presented within the Trust’s

financial statements.

Segment assets are reflected on the accompanying Statements of Assets and Liabilities as Total assets and the only

significant segment expense, the Sponsor fee, is included in the accompanying Statements of Operations.

Fair Value of Ether

The following represents the

changes in quantity of ether and the respective fair value on March 31, 2025 (Unaudited) and December 31, 2024:

changes in quantity of ether and the respective fair value for the six months ended June 30, 2025 (Unaudited):

Beginning balance as of January 1, 2025

2 unchanged sentences

( 5,690,133 )

Net realized gain on investment in ether sold to pay Sponsor fee

Net realized gain (loss) on investment in ether sold to pay Sponsor fee

Net realized gain (loss) on investment in ether sold for redemptions

( 3,476,102 )

Change in unrealized depreciation on investment in ether

( 6,380,524 )

Ending balance as of March 31, 2025 *

Beginning balance as of May 1, 2024 (date of initial seeding)

Change in unrealized appreciation on investment in ether

Ending balance as of June 30, 2025*

* No comparative table has been provided as the Trust commenced

operations on May 1, 2024.

The following represents the

changes in quantity of ether and the respective fair value for the three months ended June 30, 2025 and 2024 (Unaudited):

Beginning balance as of April 1, 2025

Ether purchased

( 4,000.0000 )

( 15,109,007 )

Net realized gain on investment in ether sold to pay Sponsor fee

Net realized gain (loss) on investment in ether sold for redemptions

Change in unrealized appreciation on investment in ether

Ending balance as of June 30, 2025

Beginning balance as of May 1, 2024 (initial seed creation date)

Ether purchased

Net realized gain on investment in ether sold to pay Sponsor fee

Net realized gain on investment in ether sold for redemptions

Change in unrealized appreciation on investment in ether

Ending balance as of December 31, 2024

Ending balance as of June 30, 2024

Trust Expenses

The Trust pays the

unitary Sponsor Fee of 0.21 % of the Trust’s ether holdings.

The Sponsor Fee is paid by the Trust to the Sponsor as

compensation for services performed under the Trust Agreement.

The Sponsor agreed to waive the entire Sponsor Fee for (i) a

six-month period which commenced on July 23, 2024 (the day the Trust’s Shares were initially listed on the Exchange), or (ii)

the first $ 500 million of Trust assets, whichever came first.

The six-month waiver period ended on January 23, 2025, at which time

the Sponsor began collecting the Sponsor Fee.

Except for during periods in which the Sponsor Fee is being waived, the Sponsor Fee

accrues daily and is payable in ether weekly in arrears.

The Administrator calculates the Sponsor Fee on a daily basis by applying a

0.21 % annualized rate to the Trust’s total ether holdings, and the amount of ether payable in respect of each daily accrual is

determined by reference to the Index.

The Trust incurred Sponsor Fee for the quarter ended March 31, 2025 of $ 5,907 , net of the Sponsor Fee waived of $ 2,169 .

The Trust pays the unitary

Sponsor fee of 0.21 % of the Trust’s ether holdings.

The Sponsor fee is paid by the Trust to the Sponsor as compensation for services

performed under the Trust Agreement.

The Sponsor agreed to waive the entire Sponsor fee for (i) a six-month period which commenced on

July 23, 2024 (the day the Trust’s Shares were initially listed on the Exchange), or (ii) the first $ 500 million of Trust assets,

whichever came first.

The six-month waiver period ended on January 23, 2025, at which time the Sponsor began collecting the Sponsor fee.

Except for during periods in which the Sponsor fee was being waived, the Sponsor fee accrues daily and is payable in ether weekly in arrears.

The Administrator calculates the Sponsor fee on a daily basis by applying a 0.21 % annualized rate to the Trust’s total ether holdings,

and the amount of ether payable in respect of each daily accrual is determined by reference to the Index.

The Trust incurred Sponsor fees

for the six-month period ended June 30, 2025 and for the period May 1, 2024 (initial seed creation date) through June 30, 2024 of $ 15,490

and $ 0 , net of Sponsor fees waived of $ 2,169 respectively.

The Sponsor has agreed to

57 unchanged sentences

with the Trust and the Sponsor.

(initial seed

Activity in Capital Transactions Issued and Redeemed:

2 unchanged sentences

Net Change in Capital Transactions Issued and Redeemed

* No prior year comparative statement has been provided since the Trust did not have operations as of March 31, 2024.

(1) Included 2 initial seed shares issued and redeemed in cash.

(initial seed

Activity in Capital Transactions Issued and Redeemed:

3 unchanged sentences

Net Change in Capital Transactions Issued and Redeemed

* No prior year comparative statement has been provided since the Trust did not have operations as of March 31, 2024.

Ether purchased payable represents

11 unchanged sentences

companies and external service providers.

As of March 31, 2025, the

Sponsor owned 20,000 Shares of the Trust.

As of June 30, 2025, the Sponsor

owned 20,000 Shares of the Trust.

The Sponsor arranged for the

2 unchanged sentences

Financial Highlights

Per Share Performance (for a Share

outstanding throughout the period presented)

Per Share Performance (for a Share outstanding

throughout each period presented)

(initial seed

Net asset value per Share, beginning of period

7 unchanged sentences

Gross expenses

* No prior year comparative statement has been provided since the Trust did not have operations as of March 31, 2024.

1 The amount represents the NAV per Share on June 18, 2024, the Seed Capital Purchase Date.

2 Calculated using average Shares outstanding.

12 unchanged sentences

Concentration Risk

Unlike other funds that may invest in diversified

assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class.

This concentration maximizes the

degree of the Trust’s exposure to a variety of market risks associated with ether and digital assets.

By concentrating its investment

strategy solely in ether, any losses suffered as a result of a decrease in the value of ether can be expected to reduce the value of an

interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.

Unlike other funds that may

invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class.

concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with ether and digital assets.

By concentrating its investment strategy solely in ether, any losses suffered as a result of a decrease in the value of ether can be expected

to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets

that were diversified.

Indemnification

24 unchanged sentences

Subsequent Events

The Trust has evaluated subsequent

events and transactions for potential recognition or disclosure through the date the financial statements were issued and has determined

that there are no material events that would require disclosure in the financial statements.

On July 22, 2025, the Sponsor,

in its capacity as Seed Capital Investor, redeemed the Seed Creation Baskets comprising 20,000 Shares (the “Seed Creation Baskets”)

for $ 374,052 .

On July 29, 2025, the SEC issued 19b-4 orders permitting in-kind creations and redemptions by authorized participants for the Trust.

July 31, 2025, the amendment to the Trust's S-1 registration statement was declared effective.

As a result of these regulatory actions,

the Trust is authorized to create and redeem shares with authorized participants on an in-kind basis.

The Trust has evaluated all subsequent events through the issuance of the financial statements and has noted no other events requiring

adjustment or additional disclosure in the financial statements other than the items noted above.

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