10-K - Bitwise Ethereum ETF (0002013744) (Filer)

Mon, Mar 17, 9:30 PM (39 days ago)

### Summary of the 10-K for Bitwise Ethereum ETF (ETHW) **Financial Performance:** - **Revenue:** Not explicitly stated. - **Net Income:** Not explicitly stated. - **Operating Expenses:** The Trust pays a unitary Sponsor Fee of 0.20% per annum of the Trust’s ether holdings. For a 6-month period commencing on July 23, 2024, the Sponsor waived the entire Sponsor Fee on the first $500 million of Trust assets through January 22, 2025. - **Earnings per Share:** Not explicitly stated. **Strategic Overview:** - **Investment Objective:** The Trust seeks to provide shareholders with exposure to the value of ether held by the Trust that is reflective of the actual ether market in which investors can purchase or sell ether, less the expenses of the Trust’s operations and other liabilities. - **Principal Investment Strategies:** The Trust holds ether and establishes its net asset value (NAV) by reference to the CME CF Ether – Dollar Reference Rate – New York Variant (the “Pricing Index”). **Future Outlook:** - The Trust's future performance will depend on various factors, including market conditions, regulatory developments, and the overall adoption and acceptance of the Ethereum network. **Risk Factors:** - **Market Risks:** The trading prices of many digital assets, including ether, have experienced extreme volatility. The price of ether has exhibited periods of extreme volatility, which could have a negative impact on the performance of the Trust. - **Regulatory Risks:** The regulatory landscape for digital assets in the United States is complex and evolving, with multiple federal and state agencies actively overseeing various aspects of their use, trading, and compliance obligations. - **Operational Risks:** The Trust relies heavily on critical service providers such as the Ether Custodian, Cash Custodian, Prime Execution Agent, and other intermediaries, whose stability and effective operations are essential to the Trust’s functionality and the safekeeping of its assets. **Financial Condition:** - The Trust's financial condition is influenced by its ether holdings, operational expenses, and regulatory environment. **Market Position Changes:** - The Trust is listed on the NYSE Arca, Inc. under the ticker symbol “ETHW.” The Trust commenced operations on July 22, 2024, and commenced trading on the Exchange on July 23, 2024.