Grayscale® Ethereum Trust Announces Resumption of Private Placement

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New York, Feb. 01, 2021 (GLOBE NEWSWIRE) —


Grayscale Investments®


, the world’s largest digital currency asset manager and sponsor of Grayscale® Ethereum Trust (


OTCQX: ETHE


) (the “Trust”), today announced that the Trust will resume the private placement of its Shares. The Trust’s private placement is offered on a periodic basis throughout the year and is now available to accredited investors for daily subscription.* The Trust is an SEC reporting company with its Shares registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

The Trust is solely and passively invested in Ethereum and was created for investors seeking exposure to Ethereum through a singular investment vehicle without the challenges of buying, storing, and safekeeping Ethereum directly. As of January 29, 2021, the Trust had more than $4 billion in assets under management (AUM) and each share of the Trust represents 0.01027553 Ethereum.

The Trust’s investment objective is for the value of its Shares (based on Ethereum per Share) to reflect the value of Ethereum held by the Trust, less the Trust’s expenses and other liabilities. To date, the Trust has not met its investment objective and the Shares quoted on OTCQX have not reflected the value of Ethereum held by the Trust less the Trust’s expenses and other liabilities, but have instead traded at a substantial premium over such value.

Following a six-month holding period, shareholders who invest in the private placement may elect to sell their Shares at prices dictated by the market under the symbol: ETHE.

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The Trust is an investment vehicle with Shares titled in the investor’s name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws. Additionally, Shares are eligible to be held in certain IRA, Roth IRA, and other brokerage and investor accounts.

The private placement Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and the Shares are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in the Shares of the Trust is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation D under the Securities Act.

As a result, the Shares are restricted shares and are subject to a six-month holding period in accordance with Rule 144 under the Securities Act. Because of the six-month holding period and the lack of an ongoing redemption program, Shares should not be purchased by any investor who is not willing and able to bear the risk of investment and lack of liquidity for at least six months. No assurances are given that after the six-month holding period, there will be any market for the resale of Shares, or, if there is such a market, as to the price at which such Shares may be sold into such a market. Qualified investors should refer to the Trust’s private placement memorandum, which is available from Grayscale at

[email protected]

, for a discussion of these and other risks.

For more information, please visit:


https://grayscale.co/ethereum-trust/


.


*The Trust offers a private placement to accredited investors. The Trust does not currently operate a redemption program.


This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.



About Grayscale Investments


®


Grayscale Investments is the world’s largest digital currency asset manager, with more than $27.7B in assets under management as of January 29, 2021. Through its family of investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a traditional security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. For more information, please visit

www.grayscale.co

and follow

@Grayscale

.



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