21Shares Ethereum ETF

21Shares Ethereum ETF is a U.S.-listed spot ether exchange-traded product structured as a trust that holds ether and issues shares that trade on an exchange under the ticker CETH. Its investment objective is to track the performance of ether in U.S. dollars as measured by the CME CF Ether-Dollar Reference Rate—New York Variant, net of the trust’s expenses and liabilities. Shares are created and redeemed in large blocks (Creation Baskets) through registered broker-dealer Authorized Participants, with the trust historically using cash creations/redemptions and planning to allow in-kind creations/redemptions effective July 30, 2025. The vehicle is passive (not leveraged and not actively managed) and its economics are primarily driven by ether price movements, share creation/redemption activity, and the ongoing sponsor fee paid in ether.

— 21Shares Ethereum ETF
%
Spot ether ETP shares (CETH)0% Exchange-traded shares designed to reflect ether price performance net of fees.
Index tracking and NAV services0% Daily valuation framework using the CME CF Ether-Dollar Reference Rate—New York Variant and NAV per Share publication.
Creation/redemption infrastructure0% Primary-market issuance and redemption of Creation Baskets via Authorized Participants (cash and planned in-kind).
Custody and asset administration0% Operational setup to hold ether with custodians and administer trust operations and reporting.

The trust’s direct primary-market counterparties are Authorized Participants, which must be registered broker-dealers...

  • Authorized Participants (registered broker-dealers)primary

    Create and redeem Creation Baskets (cash today; in-kind planned) to support primary-market flows and arbitrage versus NAV.

  • Institutional investors (RIAs, funds, corporates)primary

    Buy/sell shares on-exchange to obtain spot ether exposure with familiar custody, compliance, and reporting workflows.

  • Retail brokerage investorssecondary

    Use exchange-traded shares to access ether price exposure without managing wallets, keys, or crypto exchange accounts.

  • Market makers and liquidity providerssecondary

    Trade shares and hedge exposures to provide tight spreads; their participation influences premiums/discounts to NAV.

The trust is organized and reported in the United States and calculates NAV using a 4:00 p.m. ET valuation point...

  • •United States listing and reporting framework (SEC registrant)
  • •NAV set daily using 4:00 p.m. ET valuation convention
  • •Underlying ether liquidity is global; USD index anchors pricing
  • •Principal market selection affects GAAP fair value measurement
  • •Regulatory geography influences broker-dealer AP participation

A core operational priority is maintaining an efficient creation/redemption and arbitrage mechanism so the shares trade...

01
Implement in-kind creation/redemption optionshort-term

Fewer steps than cash orders can reduce friction and help shares track NAV.

02
Strengthen the arbitrage mechanism and liquidity ecosystemmedium-term

Efficient AP activity and market making reduce premiums/discounts and improve investor experience.

The trust’s primary economic risk is ether price volatility, which directly drives NAV and can lead to sharp drawdowns...

high

Cash creations/redemptions may impair arbitrage and widen premiums/discounts

Cash-only flows add steps and friction, potentially weakening AP arbitrage that links share price to NAV.

Scope
Secondary-market trading price vs NAV
Materiality
high
high

Limited ability to facilitate in-kind creations/redemptions due to broker-dealer rules

Absent definitive regulatory guidance on how broker-dealers can comply when transacting in/holding spot ether, fewer APs may support in-kind activity.

Scope
Primary-market liquidity and tracking efficiency
Materiality
high
medium

Ethereum network validation disruptions and slashing/hack events

Validator issues can reduce network attractiveness and adoption, pressuring ether price and therefore the trust’s NAV.

Scope
Underlying asset (ether) market value
Materiality
medium
Fair value measurement of ether (ASC 820) and principal market selection
Impacts investment valuation, unrealized gains/losses, and NAV comparability
Non-GAAP NAV vs GAAP Principal Market NAV
Affects interpretation of reported NAV per Share versus published NAV
Sponsor fee paid in ether (unitary fee) and fee waiver periods
Affects expenses, ether balances, and period-to-period comparability

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: 11/08/2026