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The Grayscale Ethereum Trust ETF (NYSE Arca:ETHE), currently trading at $16.65 with a market capitalization of $2.52 billion, has announced changes to its index composition, effective March 23, 2025. According to InvestingPro data, the ETF has experienced significant price volatility, with its shares down 38.26% year-to-date. CoinDesk Indices, Inc., the Index Provider for the Trust, has added Bullish as a Constituent Trading Platform for the CoinDesk Ether Price Index (ETX) after it satisfied the minimum liquidity requirements. Concurrently, LMAX Digital was removed from the Index due to its failure to meet these liquidity standards.
The Trust’s Index Price, which influences the value of its Ethereum-based ETF shares, is now derived from a revised set of Digital Asset Trading Platforms, including Coinbase (NASDAQ:COIN), Kraken, Crypto.com, and the newly added Bullish. The Index Provider maintains the discretion to alter the trading venues contributing to the Index Price or modify the calculation method at any time.
This update follows the Trust’s established process of quarterly reviews by the Index Provider, during which Constituent Trading Platforms may be added or removed based on liquidity criteria outlined in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024. Despite recent market volatility, InvestingPro data shows ETHE maintains a "GREAT" Financial Health Score of 3.7. This report was filed with the Securities and Exchange Commission on February 27, 2025.
Investors in the Grayscale Ethereum Trust ETF should note that these adjustments could impact the ETF’s performance by potentially altering the accuracy and reliability of the Index Price. The Trust, managed by Grayscale Investments Sponsors, LLC, remains subject to the ongoing oversight and operational changes by the Index Provider to ensure that it accurately reflects the Ethereum market dynamics. While the ETF has shown strong returns over the past five years, it currently trades 54% below its 52-week high of $36.28. For deeper insights into ETHE’s valuation and 5 additional exclusive ProTips, visit InvestingPro.
This information is based on the recent SEC filing by Grayscale Ethereum Trust ETF.
In other recent news, Grayscale Ethereum Trust ETF has announced a corporate reorganization that took effect on January 1, 2025. This internal merger involved Grayscale Investments, LLC merging with Grayscale Operating, LLC, with the latter as the surviving entity. As part of this reorganization, Grayscale Operating, LLC assigned its sponsor contracts to Grayscale Investments Sponsors, LLC, a subsidiary. This assignment includes agreements with Coinbase, Inc., and Foreside Fund Services, LLC. Grayscale Investments Sponsors, LLC has been admitted as an additional sponsor under the Trust Agreement. Grayscale Operating, LLC has initiated its withdrawal as a sponsor, which will be effective after a 120-day notice period. After this period, Grayscale Investments Sponsors, LLC will become the sole sponsor of the Trust. The Trust assures that this reorganization will not materially impact its operations or alter any rights or obligations under existing contracts.
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