iShares Ethereum Trust ETF

Previous wording

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as“may,”* “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor*’s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. Although the Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Sponsor cannot guarantee their accuracy. Except as required by applicable disclosure laws, neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

Current wording

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward‑looking statements can be identified by terminology such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. Although the Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Sponsor cannot guarantee their accuracy. Except as required by applicable disclosure laws, neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

Previous wording

The Trust’s net asset value grew from $10,000,000 at May 21, 2024 to $10,589,875 at June 30, 2024. The increase in the Trust’s net asset value resulted from an increase in the price of ether, which rose 5.90% from the Trust’s first ether purchase of $3,299.54 on June 24, 2024 to $3,494.31 at June 30, 2024.

Current wording

The Trust’s net asset value increased from $10,589,875 at June 30, 2024 to $1,019,342,543 at September 30, 2024. The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 400,000 Shares at June 30, 2024 to 51,200,000 Shares at September 30, 2024, a consequence of 50,800,000 Shares (1,270 Baskets) being created. The increase in the Trust’s net asset value was partially offset by a decrease in the price of ether, which fell 24.78% from $3,494.31 at June 30, 2024 to $2,628.44 at September 30, 2024.

Previous wording

The 5.88% increase in the NAV for purposes of the Trust’s periodic financial statements (the “Financial Statement NAV”) from $25.00 at May 21, 2024 to $26.47 at June 30, 2024 is directly related to the 5.90% increase in the price of ether.

Current wording

The 24.78% decrease in the NAV for purposes of the Trust’s periodic financial statements (the “Financial Statement NAV”) from $26.47 at June 30, 2024 to $19.91 at September 30, 2024 is directly related to the 24.78% decrease in the price of ether.

Previous wording

Net increase in net assets resulting from operations for the period from May 21, 2024 to June 30, 2024 was $589,875, resulting from an unrealized gain on investment in ether of $589,875. Other than the Sponsor’s fee of $420, the Trust had no expenses during the period.

Current wording

Net decrease in net assets resulting from operations for the period from May 21, 2024 to September 30, 2024 was $138,112,764, resulting from an unrealized loss on investment in ether of $137,918,827, a net realized loss of $21,660 from ether sold to pay expenses, and a net investment loss of $172,277. Other than the net Sponsor’s fee of $172,277, the Trust had no expenses during the quarter.