Grayscale Ethereum Trust (the Trust), is a passive entity that is managed and administered by the Sponsor. The Trust’s purpose is to hold Ethereum (ETH), which are digital assets that are created and transmitted through the operations of the peer-toper Ethereum Network, a decentralized network of computers that operates on cryptographic protocols. The Trust’s investment objective is for the value of the shares (based on Ethereum (ETH) per share) to reflect the value of ETH held by the Trust, determined by reference to the Index Price, less the Trust's expenses and other liabilities. The activity of the Trust includes issuing baskets in exchange for ETH transferred to the Trust as consideration in connection with the creations; transferring ETH, incidental rights and IR virtual currency as necessary to cover the sponsor's fee and/or any additional trust expenses and transferring ETH in exchange for baskets surrendered for redemption.