If You Invested in Grayscale Ethereum Staking ETF (ETHE)

Grayscale Ethereum Staking ETF Shares (ETHE) represent interests in Grayscale Ethereum Staking ETF, a Delaware trust sponsored by Grayscale Investments Sponsors, LLC. According to the trust’s SEC filings, the product is listed on NYSE Arca and is structured as a commodity-based exchange-traded product under NYSE Arca’s listing standards. The trust was previously known as Grayscale Ethereum Trust ETF and changed its name to Grayscale Ethereum Staking ETF effective January 5, 2026, while continuing to trade under the symbol ETHE.

The trust operates pursuant to a Declaration of Trust and Trust Agreement between the sponsor and a trustee. A Third Amended and Restated Declaration of Trust and Trust Agreement was entered into on September 25, 2025, following shareholder approval of several proposals described in the trust’s Consent Solicitation Statement. These amendments, as described in the related Form 8-K, provide the trust with the ability to stake the Ether it holds, address the sponsor’s entitlement to a staking-related fee, and define certain amendment and notice mechanics for changes to the trust agreement.

Staking arrangements and Ether-related activities

Based on the trust’s Form 8-K disclosures, Grayscale Ethereum Staking ETF may stake Ether held by the trust under staking arrangements entered into by the sponsor on behalf of the trust. On October 6, 2025, the sponsor and Coinbase, Inc., on behalf of itself and related Coinbase entities, entered into a Staking Addendum to a custodial services agreement. This addendum sets out terms under which Ether held for the trust may be staked with one or more staking providers, which may include affiliates of the custodian or other institutional validators, and describes how staking consideration is shared among the custodian, staking provider, sponsor, and the trust.

The filings state that the custodian and staking provider are entitled to receive a portion of the gross staking consideration as their fee and share, while the sponsor may receive a sponsor’s staking portion as consideration for facilitating staking, calculated as a per annum percentage of staking consideration received by the trust. The remainder of the gross staking consideration is retained by the trust. From time to time, as previously disclosed, the trust may distribute Ether or cash from the sale of Ether received as staking consideration to shareholders, subject to a staking policy adopted by the sponsor.

Listing framework and index methodology

Form 8-K disclosures explain that shares of the trust began trading on NYSE Arca under listing standards approved by the Securities and Exchange Commission (SEC) pursuant to Rule 19b-4 under the Exchange Act. In September 2025, NYSE Arca received SEC approval for generic listing standards under Rule 8.201-E (Generic) for certain commodity-based exchange-traded products. The sponsor submitted an application for the trust’s shares to be listed and traded under these generic standards, with the stated expectation that this transition would align the trust with similarly situated investment products.

The trust’s filings also describe the role of CoinDesk Indices, Inc. as the index provider for the CoinDesk Ether Price Index (ETX), which is used to derive an index price for Ether. The index is based on prices from specified digital asset trading platforms that meet the index provider’s criteria, including minimum liquidity requirements. Over time, the index provider has adjusted the list of constituent trading platforms, adding or removing platforms such as Gemini, Bullish, and Bitstamp by Robinhood in connection with scheduled quarterly reviews, as disclosed in the trust’s Form 8-K filings.

Service providers and governance structure

According to the SEC filings, the trust engages several key service providers. The sponsor has entered into a Prime Broker Agreement with Coinbase, Inc., which, together with related Coinbase entities, provides custodial and prime broker services for the trust’s Ether. The agreement governs the rights and responsibilities of the custodian, prime broker, sponsor, and trust with respect to Ether held in accounts maintained for the trust.

The trust also has a Fund Administration and Accounting Agreement with BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, under which BNY provides administrative and accounting services. This agreement replaced a prior fund administration and accounting agreement, as described in an October 2025 Form 8-K. The trust’s governance and operational framework are further detailed in its annual report and supplemental disclosures referenced in multiple Form 8-K filings.

Shareholder approvals and amendments

On September 2, 2025, the sponsor solicited consents from shareholders to approve three proposals to amend the then-existing trust agreement. As reported in the September 25, 2025 Form 8-K, shareholders approved all three proposals by the requisite majority. The proposals related to authorizing staking of Ether held by the trust, permitting the sponsor to receive a sponsor’s staking fee in addition to the sponsor’s fee, and establishing conditions and notice requirements for certain future amendments to the trust agreement.

The same filing explains that shareholders who did not object in writing within a specified period were deemed to have consented, resulting in a high percentage of outstanding shares consenting to each proposal. Following approval, the sponsor and trustee executed the Third Amended and Restated Declaration of Trust and Trust Agreement, which is incorporated by reference in the filing.

Distributions and name change

In an 8-K dated January 5, 2026, the sponsor reported that it had filed a Certificate of Amendment to change the trust’s name from Grayscale Ethereum Trust ETF to Grayscale Ethereum Staking ETF, effective January 5, 2026. The filing notes that shares are expected to continue trading on NYSE Arca under the symbol ETHE and that existing stock certificates remain valid.

The same filing describes a distribution to shareholders of record as of January 5, 2026, representing the net U.S. dollar cash proceeds of staking consideration generated under the staking arrangements from the commencement of the staking program through December 31, 2025, after deducting the sponsor’s staking portion, custodian’s fee, staking provider’s share, and the sponsor’s fee. A liquidity provider converted the distribution rewards amount to U.S. dollars by reference to the index price, with net proceeds paid to shareholders on the stated payable date. The filing emphasizes that such distributions are made pursuant to the sponsor’s staking policy and are subject to the sponsor’s approval and determination of the trust’s best interests.

Communications and social media considerations

An 8-K dated December 3, 2025, discusses the sponsor’s use of X (formerly Twitter) and the automatic creation of cashtag pages by that platform. The filing clarifies that Grayscale is not affiliated with X or other social media sites, does not control third-party content associated with cashtags, and does not authorize or verify information displayed on those pages. Investors are cautioned that such third-party information may be inaccurate, incomplete, or inconsistent with the trust’s public disclosures, and are directed to rely on SEC filings for authoritative information about the trust and its products.

Corporate reorganization of the sponsor

A Form 8-K dated October 24, 2025, describes an internal corporate reorganization involving entities that ultimately control the sponsor. As a result of this reorganization, Grayscale Investments, Inc. became the sole managing member of Grayscale Operating, LLC, which is the sole member of Grayscale Investments Sponsors, LLC, the sponsor of the trust. The filing states that this reorganization is not expected to have a material impact on the operations of the trust. The sponsor and related entities are consolidated subsidiaries of Digital Currency Group, Inc., as disclosed in the filing.

Regulatory filings and disclosures

The trust’s Form 8-K filings frequently reference its Annual Report on Form 10-K and supplemental disclosures that update sections such as “Item 1. Business” and “Item 1A. Risk Factors.” These references indicate that detailed information about the trust’s structure, Ether-related activities, risk factors, and tax considerations is contained in its periodic reports and incorporated exhibits. Investors and observers can use these filings to understand how the trust’s agreements, staking activities, and listing status interact within the broader regulatory framework.

Key characteristics of ETHE

• Trust structure sponsored by Grayscale Investments Sponsors, LLC, with a Delaware trustee under a detailed trust agreement.
• Exposure to Ether and, subject to the trust’s agreements and policies, the ability to participate in staking arrangements for Ether held by the trust.
• Listing on NYSE Arca under commodity-based exchange-traded product listing standards, with a transition path to generic listing standards under Rule 8.201-E (Generic) as described in SEC filings.
• Use of a published Ether price index maintained by CoinDesk Indices, Inc., based on selected digital asset trading platforms that meet specified criteria.
• Engagement of established financial institutions for custody, prime brokerage, administration, and accounting services, as documented in executed agreements and subsequent amendments.