Grayscale Ethereum Trust (ETH) has filed supplemental disclosures to its 2023 Annual Report, as reported in a recent SEC Form 8-K filing. The Trust, managed by Grayscale Investments, LLC, provided updated information to previously disclosed business details and risk factors.
The updates, filed today, are meant to enhance the disclosures contained in the Trust’s Annual Report for the year ending December 31, 2023. The Trust, which is incorporated in Delaware, operates under the trading symbol ETHE, although its shares are not listed on any national securities exchange.
Grayscale Ethereum Trust's business address is located at 290 Harbor Drive, 4th Floor, Stamford, Connecticut, with a business phone number of 212 668-1427. The Trust, formerly known as Ethereum Investment Trust, underwent a name change on December 12, 2017.
The Trust’s filings, including the supplemental disclosures, can be found in Exhibit 99.1 of the Form 8-K. Edward McGee, Chief Financial Officer of Grayscale Investments, LLC, as the Sponsor of the Trust, signed the filing.
The supplemental disclosures are intended to provide investors with the latest information regarding the Trust’s operations and the risks associated with its investment product. This move underscores the Trust's commitment to maintaining transparency with its investors and ensuring that all material information is readily available.
In other recent news, Grayscale Ethereum Trust has enacted significant amendments to its declaration of trust and trust agreement, following a majority approval from its shareholders. These changes include alternative procedures for the creation and redemption of baskets, modifications to the Sponsor's Fee payment schedule, and the allowance for a portion of the Trust Estate to be held in omnibus accounts to facilitate share transactions. Shareholders expressed their support for all three proposals with a substantial majority.
The Trust, managed by Grayscale Investments and overseen by CSC Delaware Trust Company as trustee, initiated the consent for these proposals. The voting process concluded with the consent solicitation and revocation period ending simultaneously. The proposals received a significant number of votes in favor, with Proposal 1 receiving 24,769,969 votes, Proposal 2 garnering 22,618,123 votes, and Proposal 3 obtaining 24,492,760 votes.
InvestingPro Insights
The Grayscale Ethereum Trust (ETH) has shown a remarkable performance over the last year, with an impressive 245.8% price total return, as of the most recent data. This aligns with the InvestingPro Tips that highlight the Trust's strong return over the last three months and a significant price uptick over the last six months. Additionally, the Trust's market capitalization stands at $9.84 billion, and despite a slight 1.21% decrease in the 1-week price total return, the 1-month and 3-month returns have been positive, at 10.45% and 19.3% respectively.
Investors should note that the Trust does not pay dividends, which might be a consideration for those seeking regular income streams. Moreover, the Trust trades with high price volatility and has weak gross profit margins, which could be a concern for risk-averse investors. The current price-to-earnings (P/E) ratio is at a low 1.97, suggesting that the Trust's shares could be undervalued based on earnings.
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