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Item 9A. Controls and Procedures

2026-03-31 compared with 2025-03-26 · 367 added, 629 removed, 260 unchanged (79% of the section changed)

10 unchanged sentences

regarding required disclosure.

There are inherent limitations to the effectiveness

of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the

controls and procedures.

Exemption from Management’s Report on

Internal Control over Financial Reporting

This Form 10-K does

not include a report of management’s assessment regarding internal control over financial reporting due to a transition period established

by rules of the SEC for newly public companies.

There are inherent limitations to the effectiveness of any system of disclosure

controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

Management’s Report on Internal Control

over Financial Reporting

The Sponsor’s management

is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under Exchange Act Rules

13a-15(f) and 15d-15(f).

The Trust’s internal control over financial reporting is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with

Internal control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records

that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Trust’s assets, (2) provide reasonable

assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that

the Trust’s receipts and expenditures are being made only in accordance with appropriate authorizations;

and (3) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Trust’s assets that could

have a material effect on the financial statements.

Because of its inherent limitations,

internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness

to future periods are subject to the risk that controls may become ineffective because of changes in conditions, or that the degree of

compliance with the policies or procedures may deteriorate.

The Principal Executive Officer

and Principal Financial and Accounting Officer of the Sponsor assessed the effectiveness of the Trust’s internal control over financial

reporting as of December 31, 2025.

In making this assessment, they used the criteria set forth by the Committee of Sponsoring Organizations

of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013).

Their assessment included an evaluation of the design

of the Trust’s internal control over financial reporting and testing of the operational effectiveness of its internal control over

financial reporting.

Based on their assessment and those criteria, the Principal Executive Officer and Principal Financial and Accounting

Officer of the Sponsor concluded that the Trust maintained effective internal control over financial reporting as of December 31, 2025.

Other Information

No officers or directors of

the Sponsor have adopted , modified , or terminated trading plans under either a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (as

such terms are defined in Item 408 of Regulation S-K of the Securities Act) during the quarter ended December 31, 2024.

No officers or directors of the Sponsor have adopted , modified , or terminated trading plans under either a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act) during the quarter ended December 31, 2025.

Disclosure Regarding Foreign Jurisdictions

57 unchanged sentences

insider trading policy as it does not have any directors, officers, or employees.

The Sponsor has adopted an

insider trading policy applicable to the Sponsor’s directors, officers and employees, which is included as an exhibit to this annual

report on Form 10-K.

The Sponsor has adopted an insider trading policy applicable to the Sponsor’s directors, officers and employees, which is included as an exhibit to the Trust’s annual report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 26, 2025, and incorporated herein by reference.

Executive Compensation

The Trust does not have directors

or executive officers.

The only ordinary expense paid by the Trust is the Sponsor’s fee.

Security Ownership of Certain

Beneficial Owners and Management and Related Stockholder Matters

The Trust does not have directors or executive officers.

The only ordinary

expense paid by the Trust is the Sponsor Fee.

Security Ownership of Certain Beneficial

Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners

There are no persons known by the Trust to own directly or indirectly

There are no people known by the Trust to own directly or indirectly

beneficially more than 5% of the outstanding Shares of the Trust as of March 30, 2026.

10 unchanged sentences

Certain Relationships and Related

Principal Accounting Fees and

Principal Accounting Fees and Services

Fees for services performed

by Cohen & Company, Ltd., as paid by the Sponsor from the Sponsor fee, for the period ended December 31, 2024 were:

by Cohen & Company, Ltd., as paid by the Sponsor from the Sponsor Fee, for the periods ended December 31, 2025 and 2024, were:

Audit-related fees

24 unchanged sentences

filed herewith or incorporated herein and made a part of this Annual Report:

Exhibit Description

Trust Agreement (2)

14 unchanged sentences

Initial Seed Capital Subscription Agreement (2)

BitGo Custodial Services Agreement (3)

BitGo New York Custodial Services Agreement (3)

Anchorage Custodial Services Agreement (3)

BitGo Custodial Services Agreement (5)

Form of Master Authorized Participant Agreement (5)

Master Infrastructure-As-A-Service Agreement (6)

Staking Agreement dated as of February 4, 2026 between Figment Inc.

and the Trust (7)

Non-Custodial Staking Services Agreement dated as of February 4, 2026 between Twinstake Ltd., the Trust and 21Shares Solana ETF (7)

Insider Trading Policies and Procedures (8)

of Independent Registered Public Accounting Firm (4)

Certification by Principal Executive Officer Pursuant

to Section 302 of the Sarbanes-Oxley Act of 2002 (1)

Certification by Principal Financial Officer Pursuant

to Section 302 of the Sarbanes-Oxley Act of 2002 (1)

Certification by Principal Executive Officer Pursuant

Consent of Independent Registered Public Accounting Firm (1)

Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1)

Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1)

Certification by Principal Executive Officer Pursuant to 18 U.S.C.

Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)

Certification by Principal Financial Officer Pursuant

Certification by Principal Financial Officer Pursuant to 18 U.S.C.

Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)

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Inline XBRL Taxonomy Extension Schema Document.*

Inline XBRL Taxonomy Extension Calculation Linkbase

Inline XBRL Taxonomy Extension Definition Linkbase

Inline XBRL Taxonomy Extension Label Linkbase

Inline XBRL Taxonomy Extension Presentation Linkbase

Cover Page Interactive Data File (Embedded as

Inline XBRL document and contained in Exhibit 101).*

Inline XBRL Taxonomy Extension Calculation Linkbase Document.*

Inline XBRL Taxonomy Extension Definition Linkbase Document.*

Inline XBRL Taxonomy Extension Label Linkbase Document.*

Inline XBRL Taxonomy Extension Presentation Linkbase Document.*

Cover Page Interactive Data File (Embedded as Inline XBRL document and contained in Exhibit 101).*

(1) Filed herewith.

Incorporated by reference to Pre-Effective Amendment No.3 to the Registrant’s Registration Statement on Form S-1 (File No.

333-274364) filed by the Registrant on May 31, 2024.

Incorporated by reference to the Registrant’s Current Report on Form 8-K filed by the Registrant on September 12, 2024.

Incorporated by reference to Pre-Effective Amendment No.

(2) Incorporated by reference to

Pre-Effective Amendment No.3 to the Registrant’s Registration Statement on Form S-1 (File No.

333-274364) filed by the Registrant

on May 31, 2024.

(3) Incorporated by reference to

the Registrant’s Current Report on Form 8-K filed by the Registrant on September 12, 2024.

(4) Incorporated by reference to

Pre-Effective Amendment No.

6 to the Registrant’s Registration Statement on Form S-1 (File No.

filed by the Registrant on July 8, 2024.

Incorporated by reference to Pre-Effective Amendment No.

Registrant's Registration Statement on Form S-1 (File No.

333-274364) filed by the Registrant on July 17, 2024.

333-274364) filed by the Registrant on

July 17, 2024.

(5) Incorporated by reference to the Registrant’s Current

Report on Form 8-K filed by the Registrant on December 18, 2025.

(6) Incorporated by reference to the Registrant’s Current

Report on Form 8-K filed by the Registrant on October 8, 2025.

(7) Incorporated by reference to the Registrant’s Current

Report on Form 8-K filed by the Registrant on February 10, 2026.

(8) Incorporated by reference to the Registrant’s Annual

Report on Form 10-K filed by the Registrant on March 26, 2025.

Form 10-K Summary

GLOSSARY OF DEFINED TERMS

“Advisers Act”:

The Investment Advisers Act of 1940, as

Article 8 of the New York Uniform Commercial

Investment Company Act of 1940, as amended.

Trust Expenses”:

Certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses (as defined below), which the

Sponsor does not assume, including, but not limited to, taxes and governmental charges, expenses and costs of any extraordinary services

performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of Shareholders,

any indemnification of the ether Custodians, Administrator or other

agents, service providers or counterparties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and

expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters.

“Administrator”:

The Bank of New York Mellon.

“Authorized Participant”:

One that purchases or redeems

Baskets from or to the Trust.

“Basket” or “Creation Basket”:

A block of 10,000

Shares used by the Trust to issue or redeem Shares.

“Blockchain” or “Ethereum blockchain”:

public transaction ledger of the Ethereum network on which validators or validator pools stake ether allowing them to be selected to add

records of recent transactions (called “blocks”) to the chain of transactions in exchange for an award of ether from the Ethereum

network and the payment of transaction fees, if any, from users whose transactions are recorded in the block being added.

“Business Day”:

Any day other than a day when the Exchange

is closed for regular trading.

Central bank digital currencies.

“Cash Custodian”:

The Bank of New York Mellon

Commodity Exchange Act of 1936, as amended.

Commodity Futures Trading Commission, an independent

agency with the mandate to regulate commodity futures and options in the United States.

Internal Revenue Code of 1986, as amended.

“Coinbase Global”:

Coinbase Global, Inc., the parent of

Coinbase, Inc.

“Cold Vault Balance”:

The Trust’s “cold storage”

or similarly secure technology.

“Connected Trading Venue”:

Trading venues (including third-party

venues and the Prime Broker’s own execution venue) where the Prime Broker executes orders to buy and sell ether on behalf of clients.

“Constituent Exchange”:

A trading venue that is eligible

as in any of the CME CF Cryptocurrency Pricing Products if it offers a market that facilitates the spot trading of the relevant base digital

asset against the corresponding quote asset, including markets where the quote asset is made fungible with the accepted digital assets

and makes trade data and order data available through an application programming interface with sufficient reliability, detail and timeliness.

Decentralized finance.

California Department of Financial Protection and

The Depository Trust Company.

DTC will act as the

securities depository for the Shares.

“DTC Participant”:

An entity that has an account with DTC.

Delaware Statutory Trust Act.

A digital asset based on the decentralized, open-source

protocol of the peer-to-peer Ethereum computer network.

“Ether Counterparty”:

Designated third party, who is not

an Authorized Participant but who may be an affiliate of an Authorized Participant, or the Prime Broker or Lender, as applicable, with

whom the Sponsor has entered into an agreement on behalf of the Trust, that will, acting as a counterparty, deliver, receive or convert

dollars the ether related to the Authorized Participant’s creation or redemption order.

“Ether Custodians”:

Coinbase Custody Trust Company, LLC,

Anchorage Digital Bank N.A, BitGo New York Trust Company, LLC.

The open-source, decentralized, peer-to-peer

Ethereum network, and the system as a whole that is involved in maintaining the ledger of ether ownership and facilitating the transfer

of ether among parties

“Ethereum blockchain”:

The blockchain ledger for Ethereum.

Cboe BZX Exchange, Inc.

“Exchange Act”:

The Securities Exchange Act of 1934, as

The Financial Crimes Enforcement Network.

Financial Industry Regulatory Authority, formerly

the National Association of Securities Dealers.

Accounting principles generally accepted in the

United States of America.

“Indirect Participants”:

Banks, brokers, dealers and trust

companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly.

“Incidental Rights”:

Rights to acquire, or otherwise establish

dominion and control over, any virtual currency or other asset or right, which rights are incident to the Trust’s ownership of ether

and arise without any action of the Trust, or of the Sponsor on behalf of the Trust.

CME CF Ether-Dollar Reference Rate — New

“Index Provider”:

CF Benchmarks Ltd.

Internal Revenue Service.

“IR Virtual Currency”:

Virtual currency tokens, or other

assets or rights, acquired by the Trust through the exercise (subject to the applicable provisions of the Trust Agreement) of any Incidental

Know-Your-Transaction.

Coinbase Credit, Inc.

“Marketing Agent”:

Foreside Global Services, LLC.

“Mutually Capped Liabilities”:

In respect of the Coinbase

Custodian’s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out

of or relating to, among others, the Coinbase Custodian’s gross negligence, violation of its confidentiality, data protection and/or

information security obligations, or violation of any law, rule or regulation with respect to the provision of its services, the Coinbase

Custodian’s liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the Coinbase

Custodian in the 12 months prior to the event giving rise to the Coinbase Custodian’s liability.

Net asset value of the Trust.

“NAV per Share”:

Net asset value of the Trust per Share.

National Futures Association.

Office of Foreign Assets Control of the U.S.

“PB Mutually Capped Liabilities”:

In respect of the Prime

Broker’s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out of

or relating to, among others, the Prime Broker’s gross negligence, violation of its confidentiality, data protection and/or information

security obligations, violation of any law, rule or regulation with respect to the provision of its services, or the full amount of the

Trust’s assets lost due to the insolvency of or security event at a Connected Trading Venue, the Prime Broker’s liability

shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the Prime Broker in the 12 months prior

to the event giving rise to the Prime Broker’s liability.

“Prime Broker”:

Coinbase, Inc.

“Principal Market NAV”:

Net asset value of the Trust determined

on a GAAP basis.

“Principal Market NAV per Share”:

Net asset value of the

Trust per Share determined on a GAAP basis.

“Redemption Order Date”:

The date a redemption order is

received in satisfactory form by the Marketing Agent.

The record of all Shareholders and holders

of the Shares in certificated form kept by the Administrator.

“Relevant Coinbase Entities”:

Coinbase Global and Coinbase

Securities and Exchange Commission.

“Securities Act”:

The Securities Act of 1933.

“Seed Capital Investor”:

21Shares US LLC, a Delaware limited

liability company.

“Seed Creation Baskets”:

Shares of the Trust purchased

by the Seed Capital Investor.

Common shares representing fractional undivided

beneficial interests in the Trust.

“Shareholders”:

Holders of Shares.

“Staking Activities”:

employing any portion of the Trust’s

assets in actions where any portion of the Trust’s ether becomes subject to the Ethereum proof-of-stake validation or is used to

earn additional ether or generate income or other earnings.

21Shares US LLC, a Delaware limited liability

“Sponsor-paid Expenses”:

The fees and other expenses incurred

by the Trust in the ordinary course of its affairs, which the Sponsor assumes and pays, excluding taxes, but including (i) the Marketing

Fee, (ii) fees to the Administrator, if any, (iii) fees to the Ether Custodians, (iv) fees to the Transfer Agent, (v) fees to the Trustee,

(vi) the fees and expenses related to any future listing, trading or quotation of the Shares on any listing exchange or quotation system

(including legal, marketing and audit fees and expenses), (vii) ordinary course legal fees and expenses but not litigation-related expenses,

(viii) audit fees, (ix) regulatory fees, including if applicable any fees relating to the registration of the Shares under the Securities

Act or the Exchange Act, (x) printing and mailing costs;

(xi) costs of maintaining the Sponsor’s website and (xii) applicable license

fees, provided that any expense that qualifies as an Additional Trust Expense will be deemed to be an Additional Trust Expense and not

a Sponsor-paid Expense.

“Sponsor Indemnified Party”:

The Sponsor and each of its

shareholders, members, directors, officers, employees, affiliates and subsidiaries.

“Trade Credits”:

Ether or cash that are borrowed by the

Trust as trade credits.

“Transfer Agent”:

The Bank of New York Mellon.

21Shares Core Ethereum ETF.

“Trust Agreement”:

Amended and Restated Trust Agreement

of 21Shares Core Ethereum ETF.

Delaware Trust Company, a Delaware trust company.

“U.S Treasury Department”:

Department of the Treasury.

The owner or holder of Shares.

Pursuant to the requirements

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behalf by the undersigned thereunto duly authorized.

21Shares Core Ethereum ETF (Registrant)

21Shares US LLC, its Sponsor

21Shares Ethereum ETF (Registrant)

LLC, its Sponsor

Title (Capacity)

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Principal Accounting Officer)

CORE EtherEUM ETF

to financial statements

21shares EtherEUM ETF

index to financial statements

Report of Independent Registered Public Accounting Firm (PCAOB ID 925 ) F-2

Statement of Assets and Liabilities F-3

Schedule of Investments F-4

Statement of Operations F-5

Statement of Changes in Net Assets F-6

Statements of Assets and Liabilities F-3

Schedules of Investment F-4

Statements of Operations F-5

Statements of Changes in Net Assets F-6

Notes to Financial Statements F-7

of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm

To the Sponsor and Shareholders of

21Shares Core Ethereum ETF

21Shares Ethereum ETF

Opinion on the Financial Statements

We have audited the accompanying statement of

assets and liabilities, including the schedule of investment, of 21Shares Core Ethereum ETF (the “Trust”) as of December 31,

2024, and the related statements of operations and changes in net assets for the period from May 1, 2024 (date of initial seeding) through

December 31, 2024, including the related notes (collectively referred to as the “financial statements”).

In our opinion, the

financial statements present fairly, in all material respects, the financial position of the Trust as of December 31, 2024, and the results

of its operations and changes in its net assets for the period from May 1, 2024 (date of initial seeding) through December 31, 2024, in

conformity with accounting principles generally accepted in the United States of America.

We have audited the accompanying statements of assets and liabilities, including the schedules of investment, of 21Shares Ethereum ETF (the “ Trust”) (formerly known as 21Shares Core Ethereum ETF) as of December 31, 2025 and 2024, and the related statements of operations and changes in net assets for the year ended December 31, 2025, and for the period from May 1, 2024 (date of initial seeding) through December 31, 2024, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust as of December 31, 2025 and 2024, and the results of its operations and changes in its net assets for the year ended December 31, 2025, and for the period from May 1, 2024 (date of initial seeding) through December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility

of the Trust’s management.

Our responsibility is to express an opinion on the Trust’s financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and

are required to be independent with respect to the Trust in accordance with the U.S.

federal securities laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the

standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free of material misstatement whether due to error or fraud.

The Trust is not required to have, nor were we engaged to

perform, an audit of its internal control over financial reporting.

As part of our audit, we are required to obtain an understanding of

internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s

internal control over financial reporting.

These financial statements are the responsibility of the Trust’s management.

Our responsibility is to express an opinion on the Trust’s financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting.

Accordingly, we express no such opinion.

Our audit includes performing procedures to assess

the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond

to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our procedures included confirmation of digital assets owned as of December 31, 2024, by correspondence with the custodians.

also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall

presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our procedures included confirmation of cash and digital assets owned as of December 31, 2025, and 2024, by correspondence with the custodians.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

We have served as the Trust’s auditor since 2024.

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March 30, 2026

21SHARES CORE ETHEREUM ETF

STATEMENT OF ASSETS AND LIABILITIES

Investment in ether, at fair value (cost $ 15,551,512 )

I – FINANCIAL INFORMATION:

Financial Statements

OF ASSETS AND LIABILITIES

Investment in ether, at fair value (cost $ 38,559,102 , and $ 15,551,512 respectively) $ 31,298,450 $ 16,869,879

Total assets $ 31,298,450 $ 16,869,879

Total liabilities $ – $ –

Commitments and contingent liabilities (Note 9)

Net assets consist of:

Net assets $ 31,298,450 $ 16,869,879

assets consists of

Paid-in-capital $ 25,536,620 $ 12,483,772

Accumulated earnings (loss)

Accumulated earnings 5,761,830 4,386,107

$ 31,298,450 $ 16,869,879

Shares issued and outstanding, no par value, unlimited amount authorized 2,110,000 1,010,000

Net asset value per share $ 14.83 $ 16.70

* No comparative statement has been provided as this is the first

fiscal year of the Trust’s operations.

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

21SHARES CORE ETHEREUM ETF

SCHEDULE OF INVESTMENT

December 31, 2024 *

accompanying notes are an integral part of the financial statements.

OF INVESTMENT

of Net Assets

Investment in ether 10,534.5809 $ 38,559,102 $ 31,298,450 100.00 %

1 unchanged sentence

Liabilities in excess of other assets – - %

* No comparative schedule has been provided as this is the first fiscal year of the Trust’s operations.

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

21SHARES CORE ETHEREUM ETF

STATEMENT OF OPERATIONS

For the Period

2024 (date of

initial seeding)

Net assets $ 31,298,450 100.00 %

of Net Assets

Investment in ether 5,050.0000 $ 15,551,512 $ 16,869,879 100.00 %

Total investments 5,050.0000 $ 15,551,512 $ 16,869,879 100.00 %

Liabilities in excess of other assets – - %

Net assets $ 16,869,879 100.00 %

* 23.73% of ether held was staked as of December 31, 2025 – See Note 2.

accompanying notes are an integral part of the financial statements.

OF OPERATIONS

(date of initial

Investment income

Staking income $ 1,121 $ –

Total income $ 1,121 $ –

Sponsor Fee 58,825 14,657

Staking Fee 280 –

Total expenses 59,105 14,657

Less waiver and reimbursement ( 18,168 ) ( 14,657 )

Net expenses 40,937 –

Net investment loss ( 39,816 ) –

Realized and change in unrealized

Realized and change in unrealized gain (loss)

Net realized gain on investment in ether sold for redemptions 9,993,389 3,067,740

Net change in unrealized appreciation on investment in ether

Net realized and change in unrealized gain (loss)

Net realized gain on investment in ether sold to pay Sponsor Fee 1,169 -

Net change in unrealized appreciation (depreciation) on investment in ether ( 8,579,019 ) 1,318,367

Net realized and change in unrealized gain 1,415,539 4,386,107

Net increase in net assets resulting from operations $ 1,375,723 $ 4,386,107

* No prior year comparative statement

has been provided as this is the first fiscal year of the Trust’s operations.

The accompanying notes are an integral part of the financial

21SHARES CORE ETHEREUM ETF

STATEMENT OF CHANGES IN NET ASSETS

For the Period

2024 (date of

initial seeding)

accompanying notes are an integral part of the financial statements.

OF CHANGES IN NET ASSETS

For the Period from

(date of initial

Net assets, beginning of period $ 16,869,879 $ –

1 unchanged sentence

Distributions for Shares redeemed ( 67,107,797 ) ( 15,109,007 )

( 15,109,007 )

Net investment loss ( 39,816 ) –

Net realized gain on investment in ether sold for redemptions 9,993,389 3,067,740

Net change in unrealized appreciation on investment in ether

Net realized gain on investment in ether sold to pay Sponsor Fee 1,169

Net change in unrealized appreciation (depreciation) on investment in ether ( 8,579,019 ) 1,318,367

Net assets, end of period $ 31,298,450 $ 16,869,879

3 unchanged sentences

Net increase in Shares issued and outstanding 1,100,000 1,010,000

* No prior year comparative statement

has been provided as this is the first fiscal year of the Trust’s operations.

The accompanying notes are an integral part of the financial

Core Ethereum ETF

accompanying notes are an integral part of the financial statements.

to Financial Statements

The 21Shares Core Ethereum

ETF (the “Trust”) is a Delaware statutory trust, formed on September 5, 2023, pursuant to the Delaware Statutory Trust Act

The Trust operates pursuant to an Amended and Restated Trust Agreement (the “Trust Agreement”).

Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled

by 21Shares US LLC (the “Sponsor”).

The 21Shares Ethereum ETF (the “Trust”) is a Delaware statutory trust, formed on September 5, 2023, pursuant to the Delaware Statutory Trust Act (“DSTA”).

The Trust operates pursuant to a Second Amended and Restated Trust Agreement (the “Trust Agreement”).

CSC Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”).

On August 27, 2025, 21Shares Ethereum ETF (the “Trust”)’s sponsor, 21Shares US LLC (the “Sponsor”), caused a Certificate of Amendment to the Trust’s Certificate of Trust to be filed with the Secretary of State of the State of Delaware in order to change the name of the Trust from “21Shares Core Ethereum ETF” to “21Shares Ethereum ETF”.

The Trust is managed and controlled by the Sponsor.

The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021.

2021, and is a wholly owned subsidiary of Jura Pentium Inc., whose ultimate parent company is 21co Holdings Limited (formerly known as

Amun Holdings Limited).

Coinbase Custody Trust Company, LLC (“Coinbase”), BitGo New York Trust Company, LLC (“BitGo”),

and Anchorage Digital Bank N.A (“Anchorage”, and, together with Coinbase and BitGo, as the context may require, the “Custodian”,

“Custodians” and each a “Custodian”), are the Custodians for the Trust and hold all of the Trust’s ether

on the Trust’s behalf.

The transfer agent (the “Transfer Agent”), the administrator for the Trust (the “Administrator”),

and the cash custodian (the “Cash Custodian”), is Bank of New York Mellon.

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.

In November 2025, 21co Holdings Limited, Jura Pentium Inc’s former ultimate parent company, was acquired by FalconX Holdings Limited, which became the ultimate parent company of Jura Pentium Inc.

Coinbase Custody Trust Company, LLC (“Coinbase Custodian”), BitGo Bank & Trust Company, N.A.

(“BitGo”), Anchorage Digital Bank N.A (“Anchorage”) and BitGo New York Trust Company, LLC (“BitGo New York” and, together with Coinbase Custodian, BitGo, and Anchorage, as the context may require, the “Ether Custodians”, “Custodians” and each an “Ether Custodian”) are the custodians for the Trust and hold all of the Trust’s ether on the Trust’s behalf.

The transfer agent (the “Transfer Agent”), the administrator for the Trust (the “Administrator”), and the cash custodian (the “Cash Custodian”), is Bank of New York Mellon.

The Trust is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”) representing fractional undivided beneficial interests in its net assets that trade on the Cboe BZX Exchange, Inc.

(the “Exchange”).

The Shares were listed for trading on the Exchange

on July 23, 2024, under the ticker symbol “CETH”.

The Trust’s investment

objective is to seek to track the performance of ether, as measured by the performance of the CME CF Ether-Dollar Reference Rate —

New York Variant (the “Index”), adjusted for the Trust’s expenses and other liabilities.

The Shares were listed for trading on the Exchange on July 23, 2024, and currently trade under the ticker symbol “TETH”.

The Trust’s investment objective is to seek to track the performance of ether, as measured by the performance of the CME CF Ether-Dollar Reference Rate — New York Variant (the “Index”), adjusted for the Trust’s expenses and other liabilities, and to reflect rewards from staking a portion of the Trust’s ether, to the extent the Sponsor in its sole discretion determines that the Trust may do so without undue legal or regulatory risk, such as, without limitation, the risk of jeopardizing the Trust’s ability to qualify as a grantor trust for U.S.

Federal income tax purposes.

CF Benchmarks Ltd.

is the administrator

for the Index (the “Index Provider”).

is the administrator for the Index (the “Index Provider”).

The Index is designed to reflect the performance of ether in U.S.

to achieve its investment objective, the Trust holds ether at its Custodians and values its Shares daily based on the Index.

The Trust is an “emerging

growth company” as that term is used in the Securities Act of 1933, as amended (the “Securities Act”), and, as such,

the Trust may elect to comply with certain reduced public company reporting requirements.

The Sponsor served as the

“Seed Capital Investor” to the Trust.

On May 1, 2024, the Sponsor, in its capacity as Seed Capital Investor, subject to certain

conditions, purchased 2 Shares at a per-Share price of $ 50.00 (the “Initial Seed Shares”).

Total proceeds to the Trust from

the sale of these Initial Seed Shares were $ 100 .

Delivery of the Seed Shares were made on May 1, 2024.

On June 18, 2024 (the “Seed

Capital Purchase Date”), the Sponsor, in its capacity as Seed Capital Investor, purchased the Seed Creation Baskets comprising 20,000

Shares (the “Seed Creation Baskets”).

In its capacity as the Seed Capital Investor, the Sponsor has acted as a statutory underwriter

in connection with this purchase.

The total proceeds to the Trust from the sale of the Seed Creation Baskets were $ 340,739 .

2024, the Trust purchased ether with the proceeds of the Seed Creation Baskets by transacting with an Ether Counterparty to acquire ether

on behalf of the Trust in exchange for cash provided by the Sponsor in its capacity as Seed Capital Investor.

All ether acquired in connection

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

In seeking to achieve its investment objective, the Trust holds ether at its Custodians and values its Shares daily based on the Index.

The Trust is an “emerging growth company” as that term is used in the Securities Act of 1933, as amended (the “Securities Act”), and, as such, the Trust may elect to comply with certain reduced public company reporting requirements.

The Sponsor served as the “Seed Capital Investor” to the Trust.

On May 1, 2024, the Sponsor, in its capacity as Seed Capital Investor, subject to certain conditions, purchased two Shares at a per-Share price of $ 50.00 (the “Initial Seed Shares”).

Total proceeds to the Trust from the sale of the Initial Seed Shares were $ 100 .

Delivery of the Initial Seed Shares were made on May 1, 2024.

On June 18, 2024 (the “Seed Capital Purchase Date”), the Sponsor, in its capacity as Seed Capital Investor, purchased the initial Seed Creation Baskets comprising 20,000 Shares (the “Initial Seed Creation Baskets”).

In its capacity as the Seed Capital Investor, the Sponsor, has acted as a statutory underwriter in connection with this purchase.

The total proceeds to the Trust from the sale of the Initial Seed Creation Baskets were $ 340,739 .

On June 18, 2024, the Trust purchased ether with the proceeds of the Initial Seed Creation Baskets by transacting with a designated third party who is not an Authorized Participant (as defined below) but who may be an affiliate of an Authorized Participant and with whom the Sponsor has entered into an agreement on behalf of the Trust (a “Trading Counterparty”), to acquire ether on behalf of the Trust in exchange for cash provided by the Sponsor, in its capacity as Seed Capital Investor.

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

The fiscal year end of the Trust is December 31 st .

Significant Accounting Policies

Basis of Accounting

The financial statements have

been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”).

The Trust qualifies as an

investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under

the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial

Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment

Company Act of 1940, as amended.

The Trust uses fair value as its method of accounting for ether in accordance with its classification

as an investment company for accounting purposes.

The preparation of the financial

statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets

and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”).

The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

The Trust uses fair value as its method of accounting for ether in accordance with its classification as an investment company for accounting purposes.

The preparation of the financial statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results may differ materially from such estimates as additional information becomes available or actual amounts may become determinable.

Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected

in the operating results of the Trust in the reporting period in which they become known.

Cash includes non-interest

bearing, non-restricted cash maintained with one financial institution that does not exceed U.S.

Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected in the operating results of the Trust in the reporting period in which they become known.

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

federally insured limits.

Investment Valuation

US GAAP defines fair value

as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants

at the measurement date.

US GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.

The Trust’s policy is to value investments held at fair value.

The Trust identifies and determines

the ether principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the

application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market with

the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based on the market

with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information

and based on initial analysis will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”)

and NAV per Share will be calculated using the fair value of ether based on the price provided by this exchange market, as of 4:00 p.m.

The Trust identifies and determines the ether principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market with the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based on the market with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information and based on initial analysis will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”) and NAV per Share will be calculated using the fair value of ether based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent

that events have occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs are used in

determining the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”)

or they may be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting

of three broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value

hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels

of the fair value hierarchy are as follows:

Unadjusted quoted prices in

active markets for identical assets or liabilities;

Inputs other than quoted prices

included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar

assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered

to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally

from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including

the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity for the asset

or liability at the measurement date.

Fair Value Measurement Using

The Trust will update its principal market analysis periodically and as needed to the extent that events have occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs are used in determining the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”), or they may be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels of the fair value hierarchy are as follows:

Unadjusted quoted prices in active markets for identical assets or liabilities;

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date.

Amount at Fair Value Measurement Using

Fair Value Level 1 Level 2 Level 3

December 31, 2025

Investment in ether $ 31,298,450 $ 31,298,450 $ – $ –

* No comparative schedule has been

provided as this is the first fiscal year of the Trust’s operations.

The cost basis of the investment

in ether recorded by the Trust for financial reporting purposes is the fair value of ether at the time of purchase.

The cost basis recorded

by the Trust may differ from proceeds collected by the authorized participant from the sale of the corresponding Shares to investors.

Amount at Fair Value Measurement Using

Fair Value Level 1 Level 2 Level 3

December 31, 2024

Investment in ether $ 16,869,879 $ 16,869,879 $ – $ –

The cost basis of the investment in ether recorded by the Trust for financial reporting purposes is the fair value of ether at the time of purchase.

The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

Investment Transactions

The Trust considers investment

transactions to be the receipt of ether for Share creations and the delivery of ether for Share redemptions or for payment of expenses

The Trust records its investments transactions on a trade date basis and changes in fair value are reflected as net change in

unrealized appreciation or depreciation on investments.

The Trust considers investment transactions to be the receipt of ether for Share creations and the delivery of ether for Share redemptions or for payment of expenses in ether.

The Trust records its investments transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments.

Realized gains and losses are calculated using the specific identification method.

Realized gains and losses are recognized in connection with transactions including redemption of shares and settling obligations for the

Sponsor’s Fee in ether.

Calculation of Net Asset Value “NAV”

and NAV per Share

On each day other than when

the Exchange is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m.

(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.

Realized gains and losses are recognized in connection with transactions including redemption of shares and settling obligations for the Sponsor Fee in ether.

The Trust earns staking rewards by delegating a portion of its ether on the Ethereum blockchain’s proof-of-stake consensus protocol.

The Sponsor has entered into contractual arrangements with the Staking Services Providers to facilitate the staking of 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 Services Provider.

Staking rewards represent variable consideration based on a variety of factors such as the amount of the ether holdings the Trust has made available to the network, the staking yield, and other factors, for its contribution to the network.

Staking rewards are recorded as staking income recognized at fair value when earned.

Because the Sponsor is not the principal to the block validation service, it does not control the full output of the reward-generating activity, and instead receives an aggregate of 25 % of the gross proceeds generated from staking (the “Staking Consideration”).

Of the Staking Fee (as defined below), the Sponsor pays the Staking Services Providers for their services in connection with staking activities.

The Trust receives and retains the remainder of the gross Staking Consideration.

The rewards owed or paid to the Staking Services Providers reduce the amount of ether rewards that are generated from the Trust’s staking activities that are available in the assets of the Trust.

Each Staking Services Provider that generates staking rewards is entitled to compensation determined as a portion of the staking rewards, which is generally determined by a fixed percentage of the overall rewards amount.

As such, the Trust presents Staking Fee income on a gross basis, reflecting only the portion of protocol rewards to which it is entitled.

Staking rewards are received in general daily at its Custodians’ account, as earned.

Staking rewards are recorded as Staking Fee income on the Statement of Operations.

The unbonding period for staked ether can vary subject to the discretion of the Sponsor’s request to unstake such assets.

The Trust’s staked ether is unable to be moved on the blockchain or traded during this period.

Temporary lock-up periods or transfer restrictions from staking could limit the Trust’s ability to meet redemptions.

As of December 31, 2025, the Trust had staked 23.73 % of its ether holdings.

The Trust will distribute all staking rewards net of Staking Fees and Staking Provider Consideration at least quarterly.

Calculation of NAV and NAV per Share

On each day other than when the Exchange is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m.

ET, the 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 Administrator 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

The Sponsor and the Trustee

will treat the Trust as a “grantor trust” for U.S.

The Sponsor and the Trustee will treat the Trust as a “grantor trust” for U.S.

federal income tax purposes.

Although not free from doubt due to the lack

of directly governing authority, if the Trust operates as expected, the Trust should be classified as a “grantor trust” for

federal income tax purposes and the Trust itself should not be subject to U.S.

federal income tax.

Each beneficial owner of Shares

will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s income,

gain, losses and deductions passed through to each beneficial owner of Shares.

If the Trust sells ether (for example, to pay fees or expenses),

such a sale is a taxable event to Shareholders.

Upon a Shareholder’s sale of its Shares, the Shareholder will be treated as having

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 December 31, 2024, and has determined that no provision for income tax is required in the Trust’s

financial statements.

Recently Issued Accounting Pronouncements

The Trust adopted FASB Accounting Standards Update

2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

The 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 Sponsor.

The CODM monitors

the operating results of the Trust.

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

for the Trust’s single segment, is consistent with that presented within the Trust’s financial statements.

In December 2023, the FASB issued Accounting Standards Update (“ASU”)

2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60):

Accounting for and Disclosure of Crypto Assets (“ASU

ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto

assets at fair value each reporting period with changes in fair value recognized in net income.

The amendments also improve the information

provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale

restrictions, and changes during the reporting period.

ASU 2023-08 is effective for annual and interim reporting periods beginning after

December 15, 2024.

Early adoption is permitted for both interim and annual financial statements that have not yet been issued.

adopted this new guidance with no material impact on its financial statements and disclosures as the Trust uses fair value as its method

of accounting for ether in accordance with its classification as an investment company for accounting purposes.

As a grantor trust, the Trust can undertake only certain types of activities.

For example, generally, the Trust cannot vary its investment portfolio to take advantage of market fluctuations.

The Trust may receive income from investment activities that do not require such decision-making.

If staking is treated for U.S.

federal income tax purposes as a passive ministerial and administrative activity, it should be permissible for the Trust.

To that end, on November 10, 2025, the Treasury Department and IRS issued a revenue procedure that provided a safe harbor for trusts that otherwise qualify as investment trusts and as grantor trusts to stake their digital assets without jeopardizing their tax status as investment trusts and grantor trusts for U.S.

federal income tax purposes.

The revenue procedure provides specific requirements that must be satisfied by a Trust in order to be eligible to rely on the safe harbor.

The Trust intends to operate so that it will qualify to be treated for U.S.

federal income tax purposes as a grantor trust.

Because the treatment of staking in a grantor trust, including interpretation of the requirements under the safe harbor, is still developing, there remains a risk of adverse regulatory or legal determinations that could affect the tax treatment of the Trust as a grantor trust or affect the Trust’s operations.

Each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and will be treated as if it directly received a pro rata portion of the Trust’s income, gain, losses and deductions.

If the Trust sells ether (for example, to pay fees or expenses), such a sale is a taxable event to shareholders of the Trust (“Shareholders”).

Upon a Shareholder’s sale of its Shares, the Shareholder will be treated as having sold the pro rata share of the ether held in the Trust at the time of the sale and recognizes gain or loss on such sale.

The Sponsor has reviewed the tax positions as of December 31, 2025, and has determined that no provision for income tax is required in the Trust’s financial statements.

Segment Reporting

The 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 Chief Executive Officer of 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 December 31, 2024 *:

Beginning balance as of May 1, 2024

The following represents the changes in quantity of ether and the respective fair value for the year ended December 31, 2025:

of ether Fair Value

Beginning balance as of January 1, 2025 5,050.0000 $ 16,869,879

Ether purchased 23,376.5303 80,150,681

( 4,000.0000 )

( 15,109,007 )

Ether rewards received 0.3632 1,121

Ether sold for redemptions ( 17,892.3126 ) ( 67,138,770 )

Net realized gain on investment in ether sold for redemptions – 9,993,389

Net realized gain on investment in ether sold to pay Sponsor Fee – 1,169

Net change in unrealized depreciation on investment in ether – ( 8,579,019 )

Ending balance as of December 31, 2025 10,534.5809 $ 31,298,450

The following represents the changes in quantity of ether and the respective fair value for the period ended December 31, 2024:

of ether Fair Value

Beginning balance as of May 1, 2024 – $ –

Ether purchased 9,050.0000 27,592,779

Ether sold ( 4,000.0000 ) ( 15,109,007 )

Net realized gain on investment in ether sold for redemptions – 3,067,740

Change in unrealized appreciation on investment in ether

Net change in unrealized appreciation on investment in ether – 1,318,367

Ending balance as of December 31, 2024 5,050.0000 $ 16,869,879

* No prior year comparative period

presented as this is the first fiscal year of the Trust’s operations.

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 Trust pays the unitary Sponsor Fee of 0.21 % of the Trust’s ether holdings (the “Sponsor Fee”).

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.

On October 8, 2025, the Sponsor agreed to voluntarily waive the fee it receives from the Trust as compensation for the Sponsor’s services rendered to the Trust for a period of one year beginning on October 9, 2025 ending on October 8, 2026.

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 Sponsor has agreed to

pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor Fee.

Operating expenses

assumed by the Sponsor include;

(i) the Marketing Fee, (ii) fees to the Administrator, if any, (iii) fees to the ether Custodians, (iv)

fees to the Transfer Agent, (v) fees to the Trustee, (vi) the fees and expenses related to any future listing, trading or quotation of

the Shares on any listing exchange or quotation system (including legal, marketing and audit fees and expenses), (vii) ordinary course

legal fees and expenses but not litigation-related expenses, (viii) audit fees, (ix) regulatory fees, including, if applicable, any fees

relating to the registration of the Shares under the Securities Act or Exchange Act, (x) printing and mailing costs;

(xi) costs of maintaining

the Sponsor’s website and (xii) applicable license fees (each, a “Sponsor-paid Expense,” and together, the “Sponsor-paid

Expenses”), provided that any expense that qualifies as an Additional Trust Expense (as defined below) will be deemed to be an Additional

Trust Expense and not a Sponsor-paid Expense.

The Sponsor will not, however,

assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental

charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust

to protect the Trust or the interests of Shareholders, any indemnification of the ether Custodians, Administrator or other agents, service

providers or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including

any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional

Trust Expenses”).

Of the Sponsor-paid Expenses, ordinary course legal fees and expenses shall be subject to a cap of $ 100,000 per

In the Sponsor’s sole discretion, all or any portion of a Sponsor-paid Expense may be re-designated as an Additional Trust

To the extent that the Sponsor

does not voluntarily assume expenses, they will be the responsibility of the Trust.

The Sponsor also pays the costs of the Trust’s

organization and offering.

The Trust is not obligated to repay any such costs related to the Trust’s organization and offering paid

by the Sponsor.

The Administrator calculates the Sponsor Fee on a daily basis by applying an 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 year ended December 31, 2025, and for the period May 1, 2024 (date of initial seeding) through December 31, 2024, of $ 40,657 and $ 0 , net of Sponsor Fees waived of $ 18,168 and $ 14,657 , respectively.

The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor Fee.

Operating expenses assumed by the Sponsor include;

(i) the fee payable to marketing agents for services provided to the Trust (the “Marketing Fee”), (ii) fees to the Administrator, if any, (iii) fees to the Custodians, (iv) fees to the Transfer Agent, (v) fees to the Trustee, (vi) the fees and expenses related to any future listing, trading or quotation of the Shares on any listing exchange or quotation system (including legal, marketing and audit fees and expenses), (vii) ordinary course legal fees and expenses but not litigation-related expenses, (viii) audit fees, (ix) regulatory fees, including, if applicable, any fees relating to the registration of the Shares under the Securities Act or Exchange Act, (x) printing and mailing costs;

(xi) costs of maintaining the Sponsor’s website and (xii) applicable license fees (each, a “Sponsor-paid Expense,” and together, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Additional Trust Expense (as defined below) will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense.

The Sponsor will not, however, assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of Shareholders, any indemnification of the Custodians, Administrator or other agents, service providers or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional Trust Expenses”).

Of the Sponsor-paid Expenses, ordinary course legal fees and expenses shall be subject to a cap of $ 100,000 per annum.

In the Sponsor’s sole discretion, all or any portion of a Sponsor-paid Expense may be re-designated as an Additional Trust Expense.

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

The Sponsor also pays the costs of the Trust’s organization and offering.

The Trust is not obligated to repay any such costs related to the Trust’s organization and offering paid by the Sponsor.

In consideration for the Sponsor’s facilitation of staking, the Trust pays 25 % of the gross staking rewards generated by the Trust’s staking activities to the Sponsor (“Staking Fee”) and retains the remainder of the gross Staking Consideration.

The Staking Fee is accrued in ether and converted to U.S.

Dollars by reference to the Index and is payable in ether weekly in arrears.

The Trust incurred Staking Fees for the year ended December 31, 2025, and for the period May 1, 2024 (date of initial seeding) through December 31, 2024, of $ 280 and $ 0 , respectively.

The accrued liability as of December 31, 2025, was $ 0 .

Creation and Redemption of Shares

The Trust creates and redeems

Shares on a continuous basis but only in Creation Baskets consisting of 10,000 Shares or multiples thereof on the NAV of the date of the

creation or redemption.

Only Authorized Participants, which are registered broker-dealers who have entered into written agreements with

the Sponsor and the Administrator, can place orders.

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).

The Trust conducts its ether purchase and sale transactions

by, in its sole discretion, choosing to trade directly with third parties (each, an “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 the Prime Broker acting in an agency capacity with third parties such as through its Coinbase Prime service pursuant to the Prime

Broker Agreement.

An ether Trading Counterparty may be an affiliate of an Authorized Participant.

The Authorized Participants

deliver only cash to create Shares and receive only cash when redeeming Shares.

Further, Authorized Participants will not directly or

indirectly purchase, hold, deliver, or receive ether as part of the creation or redemption process or otherwise direct the Trust or a

third-party with respect to purchasing, holding, delivering, or receiving ether as part of the creation or redemption process.

The Trust creates Shares by

receiving ether from a third-party that is not the Authorized Participant and the Trust—not the Authorized Participant—is

responsible for selecting the third-party to deliver the ether.

Further, the third-party will not be acting as an agent of the Authorized

Participant with respect to the delivery of the ether to the Trust or acting at the direction of the Authorized Participant with respect

to the delivery of the ether to the Trust.

The Trust redeems shares by delivering ether to a third-party that is not the Authorized Participant

and the Trust—not the Authorized Participant—is responsible for selecting the third-party to receive the ether.

third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the ether from the Trust or acting

at the direction of the Authorized Participant with respect to the receipt of the ether from the Trust.

The third-party is unaffiliated

with the Trust and the Sponsor.

For the Period

of initial seeding)

Activity in Capital Transactions Issued and Redeemed:

Shares issued (1)

Shares redeemed (1)

Net Change in Capital Transactions Issued and Redeemed

* No prior year comparative period

presented as this is the first fiscal year of the Trust’s operations.

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

For the Period

Activity in Capital Transactions Issued and Redeemed:

The Trust creates and redeems Shares on a continuous basis but only in one or more Baskets (other than in the case of the Initial Seed Shares) consisting of 10,000 Shares or multiples thereof on the NAV of the date of the creation or redemption.

Only “Authorized Participants”, which are registered broker-dealers who have entered into written agreements with the Sponsor and the Administrator, can place orders.

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).

Authorized Participants may purchase Shares in cash by depositing cash in the Trust’s account with the Cash Custodian.

This will cause the Sponsor, on behalf of the Trust, to automatically instruct a designated third party, who may be an Authorized Participant or an affiliate of an Authorized Participant, and with whom the Sponsor has entered into an agreement on behalf of the Trust (each such third party, an “Ether Counterparty”), to (i) purchase the amount of ether equivalent in value to the cash deposit amount associated with the order and (ii) deposit the resulting ether amount in the Trust’s accounts with the Ether Custodians, resulting in the Transfer Agent crediting the applicable amount of Shares to the Authorized Participant.

Authorized Participants may also purchase Shares in-kind.

To purchase Shares in-kind, an Authorized Participant delivers, or arranges for the delivery by the Authorized Participant’s designee of, ether to the Trust’s accounts with an Ether Custodian in exchange for Shares.

When such an Authorized Participant redeems its Shares in cash, the Sponsor, on behalf of the Trust will direct an Ether Custodian to transfer ether to an Ether Counterparty, who will sell the ether to be executed, in the Sponsor’s reasonable efforts, at the Index price used to calculate the Trust’s NAV, taking into account any spread, commissions, or other trading costs and deposit the cash proceeds of such sale in the Trust’s account with the Cash Custodian for settlement with the Authorized Participant.

Any slippage incurred (including, but not limited to, any trading fees, spreads, or commissions), on a cash equivalent basis, will be the responsibility of the Authorized Participant and not of the Trust or Sponsor.

Authorized Participants may also redeem Shares in-kind.

When such an Authorized Participant redeems Shares in-kind, the Trust, through an Ether Custodian, will deliver ether to the Authorized Participant or its designee in exchange for Shares.

(date of initial seeding)

Activity in Capital Shares:

Shares issued 4,680,000 1,810,002

Shares redeemed ( 3,580,000 ) ( 800,002 )

( 15,109,007 )

Net Change in Capital Transactions Issued and Redeemed

* No prior year comparative period

presented as this is the first fiscal year of the Trust’s operations.

Ether purchased payable represents

the quantity of ether purchased for the creation of Shares where the ether has not yet settled.

Generally, ether is transferred within

two Business Days of the trade date.

Net Change in Capital Shares 1,100,000 1,010,000

(date of initial seeding)

through December 31,

Activity in Capital Transactions:

Contributions for Shares issued $ 80,160,645 $ 27,592,779

Distributions for Shares redeemed ( 67,107,797 ) ( 15,109,007 )

Net Change in Capital Transactions $ 13,052,848 $ 12,483,772

Ether purchased payable represents the quantity of ether purchased for the creation of Shares where the ether has not yet settled.

Generally, ether is transferred within two Business Days of the trade date.

2025 December 31,

Ether purchased payable $ - $ -

* No prior year comparative period

presented as this is the first fiscal year of the Trust’s operations.

sold receivable represents the quantity of ether sold for the redemption of Shares where the ether has not yet been settled.

ether is transferred within two Business Days of the trade date.

Ether sold receivable represents the quantity of ether sold for the redemption of Shares where the ether has not yet been settled.

Generally, ether is transferred within two Business Days of the trade date.

2025 December 31,

Ether sold receivable $ - $ -

* No prior year comparative period

presented as this is the first fiscal year of the Trust’s operations.

Related Parties

The Sponsor is a related party

to the Trust.

The Trust’s operations are supported by its Sponsor, who is in turn supported by its parent company and affiliated

companies and external service providers.

As of December 31, 2024, the

Sponsor owned 20,000 Shares of the Trust.

The Sponsor arranged for the

creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and

the listing of Shares on the Exchange.

Quarterly Statement of Operations (unaudited)

For the Period from May 1, 2024 (date of initial seeding) through

The Sponsor is a related party to the Trust.

The Trust’s operations are supported by its Sponsor, who is in turn supported by its parent company and affiliated companies and external service providers.

As of December 31, 2024, the Sponsor owned 20,000 Shares of the Trust.

On July 22, 2025, the Sponsor redeemed its Initial Seed Creation Basket of 20,000 Shares.

As of December 31, 2025, the Sponsor owned zero Shares of the Trust.

The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and the listing of Shares on the Exchange.

For the year ended December 31, 2025, the Trust engaged in digital asset trading activity with FalconX Bravo consisting of purchases in the amount of $ 2,084,956 and sales of $ 3,153,727 .

For the period subsequent to FalconX Bravo becoming an affiliated entity, purchases and sales totaled $ 2,084,956 and $ 0 , respectively.

In connection with transactions executed in 2025, the Trust incurred total commissions of $ 729 , of which $ 415 related to transactions occurring after FalconX Bravo became an affiliated entity.

Quarterly Statement of Operations

Fiscal Year Ended December 31, 2025

Three Months Ended

(unaudited) Year Ended

2025 Sept-30,

2025 December 31,

Investment income

Staking Income $ - $ - $ - $ 1,121 $ 1,121

Total income - - - 1,121 1,121

Sponsor Fee 8,076 9,583 22,761 18,405 58,825

Staking Fee - - - 280 280

Total expenses 8,076 9,583 22,761 18,685 59,105

Less waiver and reimbursement ( 2,169 ) - - ( 15,999 ) ( 18,168 )

Net expenses 5,907 9,583 22,761 2,686 40,937

Net investment loss ( 5,907 ) ( 9,583 ) ( 22,761 ) ( 1,565 ) ( 39,816 )

Realized and change in unrealized gain (loss)

Net realized gain (loss) on investment in ether sold for redemptions ( 3,476,102 ) - 12,602,477 867,014 9,993,389

Net realized gain (loss) on investment in ether sold to pay Sponsor fee 1,523 ( 1,843 ) 913 576 1,169

Net change in unrealized appreciation (depreciation) on investment in ether ( 6,380,524 ) 6,469,118 4,375,913 ( 13,043,526 ) ( 8,579,019 )

Net realized and change in unrealized gain (loss) ( 9,855,103 ) 6,467,275 16,979,303 ( 12,175,936 ) 1,415,539

Net increase (decrease) in net assets resulting from operations $ ( 9,861,010 ) $ 6,457,692 $ 16,956,542 $ ( 12,177,501 ) $ 1,375,723

For the Period from May 1, 2024 (date of initial seeding) through December 31, 2024

Three Months Ended (unaudited)

2 unchanged sentences

initial seeding)

2024 Sept-30,

2024 For the Period

1 unchanged sentence

initial seeding)

Sponsor Fee $ - $ 3,777 $ 10,880 $ 14,657

Waiver and Reimbursement - ( 3,777 ) ( 10,880 ) ( 14,657 )

Net expenses - - - -

Net investment loss - - - -

1 unchanged sentence

Net realized gain on investment in ether sold for redemptions - - 3,067,740 3,067,740

Net change in unrealized appreciation on investment in ether

Net change in unrealized appreciation (depreciation) on investment in ether 1,561 ( 3,223,608 ) 4,540,414 1,318,367

Net realized and change in unrealized gain (loss) 1,561 ( 3,223,608 ) 7,608,154 4,386,107

Net increase (decrease) in net assets resulting from operations $ 1,561 $ ( 3,223,608 ) $ 7,608,154 $ 4,386,107

* No prior year comparative table has been provided as this is

the first fiscal year of the Trust’s operations.

Financial Highlights

Per Share Performance (for a Share

outstanding throughout the period presented)

For the period

(date of initial

Per Share Performance (for a Share outstanding throughout the period presented)

2025 For the Period May 1, 2024 (date of initial seeding) through

Net asset value per Share, beginning of period $ 16.70 $ 17.04 1

Net investment loss 2

Net investment loss on investment in ether 2 ( 0.02 ) -

Net realized and change in unrealized gain (loss) on investment in ether 3 ( 1.85 ) ( 0.34 )

Net increase (decrease) in net assets resulting from operations

Net change in net assets from operations ( 1.87 ) ( 0.34 )

Net asset value per Share, end of period $ 14.83 $ 16.70

3 unchanged sentences

Gross expenses 0.22 % 0.21 % 7

* No prior year comparative financial

statements have been provided as this is the first fiscal year of the Trust’s operations.

1 The amount represents the NAV per Share on June 18, 2024, the

Seed Capital Purchase Date.

Net expenses 0.16 % - % 7

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

2 Calculated using average Shares outstanding.

3 The amount shown for a share outstanding throughout the period may

not agree with the change in the aggregate gains and losses for the period because of the timing of sales and repurchases of the Trust’s

shares in relation to fluctuating market values for the Trust.

4 Total return is calculated based

on the change in value during the period and is not annualized.

An individual shareholder’s total return and ratio may vary from

the above total returns and ratios based on the timing of contributions to and withdrawals from the Trust.

3 The amount shown for a Share outstanding throughout the period may not agree with the change in the aggregate gains and losses for the period because of the timing of sales and repurchases of the Trust’s Shares in relation to fluctuating market values for the Trust.

4 Total return is calculated based on the change in value during the period and is not annualized.

An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawal from the Trust.

5 Annualized.

6 Not annualized.

7 Calculated based on average net

assets starting on the Seed Capital Purchase Date.

7 Calculated based on average net assets starting on June 18, 2024, the Seed Capital Purchase Date.

Commitments and Contingent Liabilities

In the normal course of business, the Trust may

enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum exposure under these arrangements

is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot be predicted

with any certainty.

In the normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss under these arrangements to be remote.

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.

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.

Indemnification

The Sponsor will not be liable

to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors

in judgment or for depreciation or loss incurred by reason of the sale of any ether or other assets of the Trust.

However, the preceding

liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful

The Sponsor and each of its

shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless

against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence,

bad faith, or willful misconduct.

The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation,

opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee,

the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement.

The Sponsor shall in no event be

deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided

for in the Trust Agreement.

Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any

indemnified claim or liability under the Trust Agreement.

The Trustee will not be liable

or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except

for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence.

The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from

and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation

or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby;

that the indemnified party acted without willful misconduct, bad faith or gross negligence.

The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any ether or other assets of the Trust.

However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct.

The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence, bad faith, or willful misconduct.

The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement.

The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Trust Agreement.

Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Trust Agreement.

The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence.

The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby;

provided that the indemnified party acted without willful misconduct, bad faith or gross negligence.

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.

The Trust has evaluated all subsequent events through the issuance of the financial statements and has noted, except as provided below, no events requiring adjustment or additional disclosure in the financial statements.

On February 4, 2026, the Trust entered into staking services agreements with each of Figment Inc., an Ontario corporation and Twinstake Ltd, an exempted company incorporated in the Cayman Islands.

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-K

Item 9A. Controls and Procedures