Fair Value of Ethereum

6 Months Ended

Jun. 30, 2022

3. Fair Value of Ethereum

ETH is held by the Custodian on behalf of the Trust and is carried at fair value. As of June 30, 2022 and December 31, 2021, the Trust held 3,076,157.47984685 and 3,114,532.09753906 ETH, respectively.

The Trust determined the fair value per ETH to be $1,019.72 and $3,644.75 on June 30, 2022 and December 31, 2021, respectively, using the price provided at 4:00 p.m., New York time, by the Digital Asset Exchange Market considered to be the Trust’s principal market (Coinbase Pro).

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


(Amounts in thousands, except Ethereum amounts)	Ethereum			Fair Value
Balance at January 1, 2021		2,937,122.40311770		$	2,188,127
ETH contributed		255,555.46585612			434,615
ETH distributed for Sponsor's Fee, related party		(78,145.77143476	)		(217,445	)
Net change in unrealized appreciation on investment in ETH		-			8,760,878
Net realized gain on investment in ETH		-			185,516
Balance at December 31, 2021		3,114,532.09753906			11,351,691
ETH contributed		-			-
ETH distributed for Sponsor's Fee, related party		(38,374.61769221	)		(98,957	)
Net change in unrealized depreciation on investment in ETH		-			(8,198,749	)
Net realized gain on investment in ETH		-			82,834
Balance at June 30, 2022		3,076,157.47984685		$	3,136,819

- 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.

+ References + Details