Recent news highlights the Bitwise Ethereum ETF's market debut, performance milestones including new 52-week highs, and ongoing momentum in crypto ETFs amid Ethereum's market activity.

• Ethereum ETFs debuted in mid-2024, providing new investment vehicles for exposure to ether [N8].
• The Bitwise Ethereum ETF reached new 52-week highs in August 2025, reflecting strong market interest [N5].
• Ethereum ETFs outperformed in May 2025, indicating favorable investor reception [N7].
• Crypto ETFs, including those focused on Ethereum, continued to attract attention amid Ethereum's momentum in early 2026 [N1].
• Morgan Stanley announced plans to launch crypto trading on E*Trade by 2026, targeting coins including ether, highlighting institutional interest [N2].
• Top-performing ETF sectors in Q3 2025 included areas related to digital assets, supporting the ETF's market environment [N3].
• Several sector ETFs showed strong performance in August and May 2025, reflecting broader market trends favorable to crypto ETFs [N4][N6].

The Trust provides investors with a regulated and accessible means to gain exposure to ether, which is a leading digital asset with broad adoption and a large developer ecosystem. Continued growth in Ethereum network usage, successful technological upgrades, and increasing acceptance of ether as a payment and investment asset could support demand for the Trust's Shares. The Trust's operational infrastructure and market presence position it to benefit from growing interest in crypto ETFs and digital asset investment vehicles.

The Trust is exposed to extreme volatility in ether prices, which can lead to significant declines in Share value, including total loss. Technological risks such as failed network upgrades, security breaches, or forks could adversely impact ether's value and the Trust's operations. Regulatory changes or increased scrutiny could impose additional costs or restrictions. Operational risks from reliance on third-party service providers and limited shareholder rights may also negatively affect the Trust. Competition from other digital assets and investment products could reduce demand for the Trust's Shares.

The Trust's moat is primarily derived from its direct exposure to ether, providing investors with a regulated vehicle to gain access to Ethereum's digital asset. Its structure as a trust with established custodians and service providers offers operational infrastructure that may be difficult for new entrants to replicate quickly. However, the Trust faces competition from other Ethereum-related investment products and alternative digital assets. Its moat is limited by the inherent volatility and regulatory uncertainties of the underlying digital asset market.

• Extreme Volatility of Ether Prices: Ether has experienced and may continue to experience significant price fluctuations, which can materially reduce the value of the Trust's Shares, including potential total loss.
• Technological and Network Risks: Challenges related to Ethereum network scalability, security vulnerabilities, proof-of-stake transition, and potential forks or airdrops may adversely affect ether's value and the Trust's performance.
• Regulatory Uncertainty: Evolving regulatory frameworks and actions by U.S. and global authorities could impact the use, classification, and trading of ether and the Trust's compliance obligations, potentially affecting Share value.
• Operational and Security Risks: The Trust relies on third-party custodians and service providers whose failures, cyber-attacks, or regulatory actions could disrupt operations or cause asset losses.
• Limited Shareholder Rights and Legal Recourse: Shareholders have limited rights and the Trust lacks direct insurance protection for ether losses, exposing investors to potential unrecoverable losses.

• Bitwise Ethereum ETF is an investment trust that holds ether (ETH) as its underlying asset, with the value of its shares directly related to the value of ether held by the Trust.
• The Trust is not actively managed and does not take actions to mitigate volatility in ether prices.
• The trading prices of ether and other digital assets have experienced extreme volatility historically and may continue to do so, which can materially affect the value of the Shares, including potential loss of all or substantially all value.
• Ether and digital assets are relatively recent innovations with medium-to-long-term value subject to blockchain technology development, adoption, and fundamental investment characteristics.
• The Trust's operations rely on third-party service providers including an Ether Custodian, Cash Custodian, Prime Execution Agent, and others, whose operational failures or regulatory actions could adversely affect the Trust and Share value.
• The Ethereum network faces technical challenges such as scalability, security vulnerabilities, and the transition to proof-of-stake, which may impact ether's market value and the Trust's performance.
• Regulatory developments and evolving frameworks in the U.S. and globally may affect ether's classification, use, and the Trust's compliance requirements, potentially impacting Share value.
• The Trust's Shares may trade at prices different from the Trust's net asset value per share.
• The Trust's Sponsor has limited staffing and potential conflicts of interest that could affect management and stability.
• The Trust's financial snapshot as of 2026-09-30 reports net income of $115,197,000 USD for Q3 2026, with no disclosed cash or liquidity ratios.
• The Trust faces risks from cyber-attacks, security breaches, and potential forks or airdrops of the Ethereum blockchain, which could affect Share value.
• The Trust's Shareholders have limited legal recourse and the Trust lacks direct insurance protection for loss of ether.
• The Trust's value is influenced by factors including global ether demand and supply, investor expectations, regulatory treatment, competition from other digital assets and CBDCs, and market liquidity.
• Recent news highlights include Ethereum ETFs debuting in 2024, strong performance and new 52-week highs in 2025, and ongoing momentum in crypto ETFs amid Ethereum's market activity in 2026.