Recent news highlights significant ETF outflows affecting related products, which may influence the Trust's scale and market dynamics.

• Reports indicate large ETF outflows in related products THRO and TXBC, which may impact the 21Shares Ethereum ETF's market environment and investor interest [N1].

The Trust offers investors direct exposure to ether through a regulated exchange-traded product with daily NAV calculation and established custodial arrangements. The Sponsor's experience and the Trust's operational infrastructure support its ability to maintain product integrity. The fee waiver periods reduce costs for investors temporarily, potentially enhancing attractiveness. The Trust's ability to reflect staking rewards, subject to legal and regulatory considerations, may provide additional value to shareholders. The transition to a new index provider (FTSE International Limited) may offer continuity in pricing benchmarks.

The Trust faces risks from significant ETF outflows reported in related products, which may impact its scale and economic viability. The Sponsor's discretionary fee waivers may end, increasing costs for shareholders. The Trust's restrictions on shareholder derivative actions and the requirement for substantial ownership thresholds may limit shareholder recourse. The termination of the licensing agreement with CF Benchmarks and transition to a new index provider introduces operational risk. Market volatility in ether prices and regulatory uncertainties in digital assets may adversely affect the Trust's performance and investor interest.

The Trust benefits from the established infrastructure and experience of its Sponsor, 21Shares US LLC, which is part of a group managing multiple digital asset exchange-traded products with significant assets under management. The use of multiple reputable Ether Custodians and a recognized pricing benchmark supports operational reliability. The Trust's passive structure and regulatory status as a Delaware statutory trust provide a clear legal framework. However, competition from other digital asset exchange-traded products and the Trust's reliance on third-party index providers and custodians present ongoing challenges. The Sponsor's fee waiver periods may provide temporary cost advantages to investors but are discretionary and time-limited.

• Market and Liquidity Risk: The Trust's value depends on the price of ether, which is subject to high volatility and market fluctuations. Significant ETF outflows may reduce liquidity and impact the Trust's scale and viability.
• Regulatory and Legal Risk: The Trust operates under a specific legal structure as a Delaware statutory trust and is not registered as an investment company. Changes in regulatory frameworks or interpretations could affect operations or tax treatment.
• Operational Risk: The Trust relies on third-party custodians and index providers. The termination of the licensing agreement with CF Benchmarks and transition to FTSE International Limited may pose operational challenges.
• Governance and Shareholder Rights Risk: The Trust Agreement restricts shareholders' ability to bring derivative actions, requiring significant ownership thresholds and procedural steps, potentially limiting shareholder recourse.
• Sponsor Dependency Risk: The Sponsor controls key aspects of the Trust, including fee waivers and termination rights. Sponsor decisions and potential conflicts of interest may impact the Trust's operations and shareholder interests.

• 21Shares Ethereum ETF is an exchange-traded fund (ETF) trading on the Cboe BZX Exchange under the ticker symbol TETH [S1].
• The Trust's investment objective is to track the performance of ether as measured by the CME CF Ether-Dollar Reference Rate - New York Variant, adjusted for expenses and liabilities, and to reflect staking rewards if legally permissible [S1].
• The Trust holds ether and values its shares daily based on the Index price at 4:00 p.m. ET [S1].
• The Trust is a Delaware statutory trust formed on September 5, 2023, and continuously issues shares in blocks of 10,000 called Creation Baskets [S1].
• Shares represent fractional undivided beneficial interests in the Trust's net assets, primarily ether held by Ether Custodians on behalf of the Trust [S1].
• The Trust is passive, not actively managed, and does not trade ether except for creation/redemption or to pay expenses [S1].
• The Sponsor is 21Shares US LLC, a wholly owned subsidiary of 21co Holdings Limited, which is ultimately owned by FalconX Holdings Limited [S1].
• The Sponsor pays all ordinary operating expenses out of a Sponsor Fee of 0.21% annualized on ether holdings, which has been voluntarily waived for certain periods [S1].
• The Trust uses multiple Ether Custodians including Coinbase Custody Trust Company, BitGo Bank & Trust Company, Anchorage Digital Bank, and BitGo New York Trust Company [S1].
• Shares are created and redeemed by Authorized Participants, who are registered broker-dealers with agreements with the Sponsor and Administrator [S1].
• The Trust's net asset value (NAV) is calculated daily based on the Index price and the fair value of ether in its principal market [S1].
• The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not regulated as a commodity pool under the Commodity Exchange Act [S1].
• The Trust's financial snapshot as of June 30, 2026, shows cash and equivalents of $59,241 and a net loss of $4,079,548 for the period [S2].
• The Trust's shares are held in book-entry form through DTC, and beneficial ownership information is not publicly available [S1].
• The Trust Agreement restricts shareholders' rights to bring derivative actions, requiring at least two non-affiliated shareholders holding collectively at least 10% of outstanding shares to initiate such actions, with additional procedural requirements [S1].
• The Sponsor terminated the licensing agreement with CF Benchmarks for the CME CF Ether-Dollar Reference Rate effective August 31, 2026, and intends to enter a licensing agreement with FTSE International Limited for index data [S1].
• Recent news reports indicate significant ETF outflows affecting related products, which may impact the Trust's scale and viability [N1].
• The Sponsor is not liable for losses due to market depreciation or sales of ether except in cases of gross negligence or willful misconduct [S1].
• The Sponsor may convert the Sponsor Fee paid in ether into cash at its discretion, and the Trust is not responsible for conversion fees [S1].
• The Trust's fiscal year ends December 31, and it has no fixed termination date; the Sponsor may terminate the Trust at its discretion with at least 30 days' notice [S1].
• The Sponsor has experience managing digital asset exchange-traded products since 2018 and oversees multiple such products with assets under management totaling approximately $7.56 billion as of December 31, 2025 [S1].