Tue, May 13, 9:33 PM (40 days ago)
### 21Shares Core Ethereum ETF (CETH) Q1 2025 Financial Summary **Overview:** 21Shares Core Ethereum ETF (CETH) reported a significant decline in net asset value for the quarter ended March 31, 2025. The primary driver of this decline was the substantial decrease in the price of ether, the digital asset in which the ETF invests. **Financial Performance:** - **Net Asset Value:** Decreased from $16,869,879 at December 31, 2024, to $8,403,421 at March 31, 2025. - **Ether Holdings:** The fair value of ether holdings dropped from $16,869,879 to $8,407,804. - **Net Decrease in Net Assets:** $9,861,010, primarily due to a net change in unrealized loss on investment in ether ($6,380,524) and a net realized loss from ether sold for redemptions ($3,476,102). - **Sponsor Fee:** The Trust incurred a net sponsor fee of $5,907, after accounting for a waiver of $2,169. - **Share Activity:** 520,000 shares were issued, and 610,000 shares were redeemed, resulting in a net decrease of 90,000 shares. **Operational Highlights:** - **Investment Strategy:** The ETF aims to track the performance of ether, as measured by the CME CF Ether-Dollar Reference Rate—New York Variant. - **Sponsor Fee Waiver:** The sponsor waived the fee for the first six months or until the Trust's assets reached $500 million, whichever came first. The waiver period ended on January 23, 2025. - **Liquidity and Capital Resources:** The Trust's only ordinary recurring expense is the sponsor fee, which is covered by the sponsor along with other operational expenses. **Future Outlook:** - **Market Risks:** The ETF is exposed to significant market risks due to its concentrated investment in ether. Any adverse movements in the price of ether will directly impact the ETF's net asset value. - **Uncertainties:** The Trust faces uncertainties related to regulatory changes, market volatility, and the performance of ether. - **Future Operations:** The Trust will continue to issue and redeem shares in Creation Baskets of 10,000 shares or multiples thereof, and will sell ether as needed to cover expenses. **Conclusion:** The first quarter of 2025 was challenging for 21Shares Core Ethereum ETF, with a significant decline in net asset value driven by the drop in ether prices. The Trust's future performance will be closely tied to the price movements of ether and the ability to manage operational expenses effectively. Investors should be aware of the concentrated risk associated with the ETF's investment strategy and monitor market conditions closely.