Fair Value of ETC

6 Months Ended

Jun. 30, 2024

3. Fair Value of ETC

ETC is held by the Custodian on behalf of the Trust and is carried at fair value. As of June 30, 2024 and December 31, 2023, the Trust held 11,406,089.20579717 and 11,548,776.17230000 ETC, respectively.

The Trust determined the fair value per ETC to be $23.56 and $21.99 on June 30, 2024 and December 31, 2023, respectively, using the price provided at 4:00 p.m., New York time, by the Digital Asset Trading Platform Market considered to be the Trust’s principal market (Coinbase).

The following represents the changes in quantity of ETC and the respective fair value:


(Amounts in thousands, except ETC amounts)	Quantity			Fair Value
Balance at December 31, 2022	11,841,144.97143656			$	187,327
ETC contributed		-			-
ETC distributed for Sponsor’s Fee, related party		(292,368.79913656	)		(5,476	)
Net change in unrealized appreciation on investment in ETC		-			68,838
Net realized gain on investment in ETC		-			3,269
Balance at December 31, 2023		11,548,776.17230000		$	253,958
ETC contributed		-			-
ETC distributed for Sponsor’s Fee, related party		(142,686.96650283	)		(3,964	)
Net change in unrealized appreciation on investment in ETC		-			15,847
Net realized gain on investment in ETC		-			2,886
Balance at June 30, 2024	11,406,089.20579717			$	268,727

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details