Wed, Mar 5, 7:15 PM (46 days ago)
The iShares Ethereum Trust ETF (ETHA), established on November 9, 2023, is designed to track the price of ether, with a net asset value of $3,571,262 at year-end 2024. The Trust's shares, totaling 141,480,000, are traded on NASDAQ. Financially, the Trust does not generate income, relying on ether sales to cover operational expenses, including a 0.25% annual Sponsor's Fee. The Trust is exposed to high volatility in ether prices, influenced by market sentiment, regulatory developments, and competition from other digital assets and financial products. Significant risks include cybersecurity threats, operational disruptions, and regulatory scrutiny, particularly following high-profile collapses in the digital asset space. The Trust's structure limits shareholder rights and lacks the protections of registered investment companies. Future regulatory changes could adversely impact ether's value and the Trust's operations. The absence of in-kind creation and redemption processes may further increase trading inefficiencies and price discrepancies, adversely affecting the Shares' value.