Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2021 | Feb. 19, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | false | |||
Document Fiscal Year Focus | 2023 | |||
Document Fiscal Period Focus | FY | |||
Document Period End Date | Dec. 31, 2023 | |||
Document Annual Report | true | |||
Document Transition Report | false | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Registrant Name | Grayscale Ethereum Classic Trust (ETC) | |||
Entity Central Index Key | 0001705181 | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | true | |||
Entity Ex Transition Period | true | |||
Entity Common Stock, Shares Outstanding | 13,993,800 | |||
Entity Public Float | $ 82,981,340 | |||
Trading Symbol | ETCG | |||
Entity Shell Company | false | |||
Entity Filer Category | Accelerated Filer | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity File Number | 000-56309 | |||
Entity Incorporation, State or Country Code | DE | |||
Entity Tax Identification Number | 82-6239281 | |||
Entity Address, Address Line One | 290 Harbor Drive, 4th Floor | |||
City Area Code | 212 | |||
Local Phone Number | 668-1427 | |||
Entity Address, City or Town | Stamford | |||
Entity Address, Postal Zip Code | 06902 | |||
Entity Address, State or Province | CT | |||
Title of 12(g) Security | Grayscale Ethereum Classic Trust (ETC) Shares | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
ICFR Auditor Attestation Flag | false | |||
Document Financial Statement Error Correction [Flag] | false | |||
Documents Incorporated by Reference | None | |||
Auditor Firm ID | 688 | 711 | ||
Auditor Name | Marcum LLP | Friedman LLP | ||
Auditor Location | New York, New York | East Hanover, New Jersey |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Investment in ETC, at fair value (cost $87,209 and $89,416 as of December 31, 2023 and 2022, respectively) | $ 253,958,000 | $ 187,327,000 |
Total assets | 253,958,000 | 187,327,000 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Net assets | 253,958,000 | 187,327,000 |
Net Assets consists of: | ||
Paid-in-capital | 100,243,000 | 100,243,000 |
Accumulated net investment loss | (35,912,000) | (30,436,000) |
Accumulated net realized gain on investment in ETC | 22,878,000 | 19,609,000 |
Accumulated net change in unrealized appreciation on investment in ETC | 166,749,000 | 97,911,000 |
Net assets | $ 253,958,000 | $ 187,327,000 |
Shares issued and outstanding, no par value (unlimited Shares authorized) | 13,993,800 | 13,993,800 |
Principal market net asset value per Share | $ 18.15 | $ 13.39 |
Related Party | ||
Liabilities: | ||
Sponsor's Fee payable, related party | $ 0 | $ 0 |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Investment in ETC, at fair value (cost $87,209 and $89,416 as of December 31, 2023 and 2022, respectively) | $ 87,209 | $ 89,416 |
Schedules of Investment
Schedules of Investment $ in Thousands | Dec. 31, 2023 USD ($) ETC | Dec. 31, 2022 USD ($) ETC |
Schedule Of Investments [Line Items] | ||
Quantity of ETC | ETC | 11,548,776.1723 | 11,841,144.97143656 |
Investment, Type [Extensible Enumeration] | Investment in ETC | Investment in ETC |
Cost | $ 87,209 | $ 89,416 |
Fair Value | $ 253,958 | $ 187,327 |
% of Net Assets | 100% | 100% |
Investment in ETC | ||
Schedule Of Investments [Line Items] | ||
Cost | $ 87,209 | $ 89,416 |
Fair Value | $ 253,958 | $ 187,327 |
% of Net Assets | 100% | 100% |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment income: | |||
Investment income | $ 0 | $ 0 | $ 0 |
Expenses: | |||
Sponsor's Fee, related party | 5,476 | 8,638 | 15,574 |
Net investment loss | (5,476) | (8,638) | (15,574) |
Net realized and unrealized gain (loss) from: | |||
Net realized gain on investment in ETC | 3,269 | 6,261 | 12,791 |
Net change in unrealized appreciation (depreciation) on investment in ETC | 68,838 | (217,762) | 337,929 |
Net realized and unrealized gain (loss) on investment | 72,107 | (211,501) | 350,720 |
Net increase (decrease) in net assets resulting from operations | $ 66,631 | $ (220,139) | $ 335,146 |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (decrease) in net assets from operations: | |||||||
Net investment loss | $ (1,348) | $ (1,511) | $ (1,584) | $ (2,803) | $ (5,476) | $ (8,638) | $ (15,574) |
Net realized gain on investment in ETC | 797 | 962 | 1,017 | 2,127 | 3,269 | 6,261 | 12,791 |
Net change in unrealized appreciation (depreciation) on investment in ETC | 63,331 | 56,592 | (141,346) | 162,740 | 68,838 | (217,762) | 337,929 |
Net increase (decrease) in net assets resulting from operations | 66,631 | (220,139) | 335,146 | ||||
Increase in net assets from capital share transactions: | |||||||
Shares issued | 0 | 0 | 2,716 | ||||
Net increase in net assets resulting from capital share transactions | 0 | 0 | 2,716 | ||||
Total increase (decrease) in net assets from operations and capital share transactions | 66,631 | (220,139) | 337,862 | ||||
Net Assets [Abstract] | |||||||
Beginning of year | $ 187,327 | $ 407,466 | 187,327 | 407,466 | 69,604 | ||
End of year | $ 253,958 | $ 187,327 | $ 253,958 | $ 187,327 | $ 407,466 | ||
Change in Shares outstanding: | |||||||
Shares outstanding at beginning of year | 13,993,800 | 13,993,800 | 13,993,800 | 13,993,800 | 13,714,100 | ||
Shares issued | 0 | 0 | 279,700 | ||||
Net increase in Shares | 0 | 0 | 279,700 | ||||
Shares outstanding at end of year | 13,993,800 | 13,993,800 | 13,993,800 | 13,993,800 | 13,993,800 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Grayscale Ethereum Classic Trust (ETC) (the “Trust”) is a Delaware Statutory Trust that was formed on April 18, 2017 and commenced operations on April 24, 2017. In general, the Trust holds Ethereum Classic (“ETC”) and, from time to time, issues common units of fractional undivided beneficial interest (“Shares”) (in minimum baskets of 100 Shares, referred to as “Baskets”) in exchange for ETC. The redemption of Shares is not currently contemplated and the Trust does not currently operate a redemption program. Subject to receipt of regulatory approval and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. The Trust currently has no intention of seeking regulatory approval to operate an ongoing redemption program. The Trust’s investment objective is for the value of the Shares (based on ETC per Share) to reflect the value of ETC held by the Trust, less the Trust’s expenses and other liabilities. The Trust may also receive Incidental Rights and/or IR Virtual Currency as a result of the Trust’s investment in ETC, in accordance with the terms of the Trust Agreement. Incidental Rights are rights to claim, or otherwise establish dominion and control over, any virtual currency or other asset or right, which rights are incident to the Trust’s ownership of ETC and arise without any action of the Trust, or of the Sponsor or Trustee on behalf of the Trust; IR Virtual Currency is any virtual currency tokens, or other asset or right, received by the Trust through the exercise (subject to the applicable provisions of the Trust Agreement) of any Incidental Right. Grayscale Investments, LLC (“Grayscale” or the “Sponsor”) acts as the Sponsor of the Trust and is a wholly owned subsidiary of Digital Currency Group, Inc. (“DCG”). The Sponsor is responsible for the day-to-day administration of the Trust pursuant to the provisions of the Trust Agreement. Grayscale is responsible for preparing and providing annual and quarterly reports on behalf of the Trust to investors and is also responsible for selecting and monitoring the Trust’s service providers. As partial consideration for the Sponsor’s services, the Trust pays Grayscale a Sponsor’s Fee as discussed in Note 6. The Sponsor also acts as the sponsor and manager of other investment products including Grayscale Basic Attention Token Trust (BAT) (OTCQB: GBAT), Grayscale Bitcoin Trust (BTC) (NYSE Arca: GBTC), Grayscale Bitcoin Cash Trust (BCH) (OTCQX: BCHG), Grayscale Chainlink Trust (LINK) (OTCQB: GLNK), Grayscale Decentraland Trust (MANA) (OTCQX: MANA), Grayscale Ethereum Trust (ETH) (OTCQX: ETHE), Grayscale Filecoin Trust (FIL) (OTCQB: FILG), Grayscale Horizen Trust (ZEN) (OTCQX: HZEN), Grayscale Litecoin Trust (LTC) (OTCQX: LTCN), Grayscale Livepeer Trust (LPT) (OTCQB: GLIV), Grayscale Solana Trust (SOL) (OTCQB: GSOL), Grayscale Stellar Lumens Trust (XLM) (OTCQX: GXLM), Grayscale Zcash Trust (ZEC) (OTCQX: ZCSH), Grayscale Decentralized Finance (DeFi) Fund LLC (OTCQB: DEFG), Grayscale Digital Large Cap Fund LLC (OTCQX: GDLC), and Grayscale Smart Contract Platform Ex Ethereum (ETH) Fund LLC, each of which is an affiliate of the Trust. The following investment products sponsored or managed by the Sponsor are also SEC reporting companies with their shares registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): Grayscale Bitcoin Cash Trust (BCH), Grayscale Ethereum Trust (ETH), Grayscale Horizen Trust (ZEN), Grayscale Litecoin Trust (LTC), Grayscale Stellar Lumens Trust (XLM), Grayscale Zcash Trust (ZEC), and Grayscale Digital Large Cap Fund LLC. On January 10, 2024, the Securities and Exchange Commission (the “SEC”) approved an application under Rule 19b-4 of the Exchange Act by NYSE Arca, Inc. (“NYSE Arca”) to list the shares of the Grayscale Bitcoin Trust (BTC), which began trading on NYSE Arca on January 11, 2024. Grayscale Bitcoin Trust (BTC) is an SEC reporting company with its shares registered pursuant to Section 12(b) of the Exchange Act. Grayscale Advisors, LLC, a Registered Investment Advisor and an affiliate of the Sponsor, is the advisor to the Grayscale Future of Finance (NYSE: GFOF) product. Authorized Participants of the Trust are the only entities who may place orders to create or, if permitted, redeem Baskets. Grayscale Securities, LLC (“Grayscale Securities” or, in such capacity, an “Authorized Participant”), a registered broker-dealer and wholly owned subsidiary of the Sponsor, is the only Authorized Participant, and is party to a participant agreement with the Sponsor and the Trust. Additional Authorized Participants may be added at any time, subject to the discretion of the Sponsor. Liquidity Providers may be engaged from time to time and at any time. Genesis Global Trading, Inc. (“Genesis”), a wholly owned subsidiary of DCG, served as a Liquidity Provider from October 3, 2022 to September 12, 2023. Unaffiliated Liquidity Providers have since been engaged, and additional Liquidity Providers who are unaffiliated with the Trust may be engaged in the future. The custodian of the Trust is Coinbase Custody Trust Company, LLC (the “Custodian”), a third-party service provider. The Custodian is responsible for safeguarding the ETC, Incidental Rights, and IR Virtual Currency held by the Trust, and holding the private key(s) that provide access to the Trust’s digital wallets and vaults. The transfer agent for the Trust (the “Transfer Agent”) is Continental Stock Transfer & Trust Company. The responsibilities of the Transfer Agent are to maintain creations, redemptions, transfers, and distributions of the Trust’s Shares which are primarily held in book-entry form. On May 2, 2018, the Trust received notice that its Shares were qualified for public trading on the OTCQX U.S. Marketplace of the OTC Markets Group Inc. (“OTCQX”). The Trust’s trading symbol on OTCQX is “ETCG” and the CUSIP number for its Shares is 38963Q107 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust: The financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies . The Trust uses fair value as its method of accounting for ETC in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act of 1940. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material. The Trust conducts its transactions in ETC, including receiving ETC for the creation of Shares and delivering ETC for the redemption of Shares and for the payment of the Sponsor’s Fee. At this time, the Trust is not accepting redemption requests from shareholders. Since its inception, the Trust has not held cash or cash equivalents. Principal Market and Fair Value Determination To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s net asset value in accordance with U.S. GAAP (“Principal Market NAV”), the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for ETC in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that ETC is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust only receives ETC in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets (referred to as “Trading Platform Markets” in this Annual Report), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”). In determining which of the eligible Digital Asset Markets is the Trust’s principal market, the Trust reviews these criteria in the following order: First, the Trust reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering (“AML”) and know-your-customer (“KYC”) regulations, and non-Digital Asset Trading Platform Markets that the Trust reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market. Second, the Trust sorts these Digital Asset Markets from high to low by market-based volume and level of activity of ETC traded on each Digital Asset Market in the trailing twelve months. Third, the Trust then reviews pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market. Fourth, the Trust then selects a Digital Asset Market as its principal market based on the highest market-based volume, level of activity and price stability in comparison to the other Digital Asset Markets on the list. Based on information reasonably available to the Trust, Trading Platform Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Trading Platform Markets as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis, a Trading Platform Market has been selected as the Trust’s principal market. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market. The cost basis of ETC received in connection with a creation order is recorded by the Trust at the fair value of ETC at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Investment Transactions and Revenue Recognition The Trust considers investment transactions to be the receipt of ETC for Share creations and the delivery of ETC for Share redemptions or for payment of expenses in ETC. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in ETC. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the ‘exit price’) in an orderly transaction between market participants at the measurement date. GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment. • Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly. • Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust. Fair Value Measurement Using (Amounts in thousands) Amount at Level 1 Level 2 Level 3 December 31, 2023 Assets Investment in ETC $ 253,958 $ 253,958 $ - $ - December 31, 2022 Assets Investment in ETC $ 187,327 $ 187,327 $ - $ - Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. ASU 2023-08 is effective for annual and interim reporting periods beginning after December 15, 2024. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. The Trust adopted this new guidance on January 1, 2024, with no material impact on its financial statements and disclosures as the Trust historically used fair value as its method of accounting for ETC in accordance with its classification as an investment company for accounting purposes. |
Fair Value of ETC
Fair Value of ETC | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of ETC | 3. Fair Value of ETC ETC is held by the Custodian on behalf of the Trust and is carried at fair value. As of December 31, 2023, 2022 and 2021, the Trust held 11,548,776.17230000 , 11,841,144.97143656 and 12,155,893.99048110 ETC, respectively. The Trust determined the fair value per ETC to be $ 21.99 , $ 15.82 , and $ 33.52 on December 31, 2023, 2022 and 2021, 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, 2020 12,275,746.83121040 $ 69,604 ETC contributed 249,223.57301485 2,716 ETC distributed for Sponsor's Fee, related party ( 369,076.41374415 ) ( 15,574 ) Net change in unrealized appreciation on investment in ETC - 337,929 Net realized gain on investment in ETC - 12,791 Balance at December 31, 2021 12,155,893.99048110 $ 407,466 ETC contributed - - ETC distributed for Sponsor's Fee, related party ( 314,749.01904454 ) ( 8,638 ) Net change in unrealized depreciation on investment in ETC - ( 217,762 ) Net realized gain on investment in ETC - 6,261 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 |
Creations and Redemptions of Sh
Creations and Redemptions of Shares | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Creations and Redemptions of Shares | 4. Creations and Redemptions of Shares At December 31, 2023 and 2022, there were an unlimited number of Shares authorized by the Trust. The Trust creates (and, should the Trust commence a redemption program, redeems) Shares from time to time, but only in one or more Baskets. The creation and redemption of Baskets on behalf of investors are made by the Authorized Participant in exchange for the delivery of ETC to the Trust or the distribution of ETC by the Trust. The number of ETC required for each creation Basket or redemption Basket is determined by dividing (x) the number of ETC owned by the Trust at 4:00 p.m., New York time, on such trade date of a creation or redemption order, after deducting the number of ETC representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust, by (y) the number of Shares outstanding at such time and multiplying the quotient obtained by 100. Each Share represented approximately 0.8253 and 0.8462 of one ETC at December 31, 2023 and 2022, respectively. The decrease in the number of ETC represented by each Share is primarily a result of the periodic withdrawal of ETC to pay the Sponsor’s Fee. The cost basis of investments in ETC recorded by the Trust is the fair value of ETC, as determined by the Trust, at 4:00 p.m., New York time, on the date of transfer to the Trust by the Authorized Participant based on the creation Baskets. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of each Share to investors. The Authorized Participant may realize significant profits buying, selling, creating, and, if permitted, redeeming Shares as a result of changes in the value of Shares or ETC. At this time, the Trust is not operating a redemption program and is not accepting redemption requests. Subject to receipt of regulatory approval and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. The Trust currently has no intention of seeking regulatory approval to operate an ongoing redemption program. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Sponsor takes the position that the Trust is properly treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor trust, the Trust will not be subject to U.S. federal income tax. Rather, if the Trust is a grantor trust, each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s income, gain, losses and deductions will “flow through” to each beneficial owner of Shares. If the Trust were not properly classified as a grantor trust, the Trust might be classified as a partnership for U.S. federal income tax purposes. However, due to the uncertain treatment of digital assets, including forks, airdrops and similar occurrences for U.S. federal income tax purposes, there can be no assurance in this regard. If the Trust were classified as a partnership for U.S. federal income tax purposes, the tax consequences of owning Shares generally would not be materially different from the tax consequences described herein, although there might be certain differences, including with respect to timing. In addition, tax information reports provided to beneficial owners of Shares would be made in a different form. If the Trust were not classified as either a grantor trust or a partnership for U.S. federal income tax purposes, it would be classified as a corporation for such purposes. In that event, the Trust would be subject to entity-level U.S. federal income tax (currently at the rate of 21 %) on its net taxable income and certain distributions made by the Trust to shareholders would be treated as taxable dividends to the extent of the Trust’s current and accumulated earnings and profits. In accordance with GAAP, the Trust has defined the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the “more-likely-than-not” threshold, based on the largest benefit that is more than 50% likely to be realized. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current period. As of and during the years ended December 31, 2023, 2022, and 2021, the Trust did not have a liability for any unrecognized tax amounts. However, the Sponsor’s conclusions concerning its determination of “more-likely-than-not” tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance, and ongoing analyses of and changes to tax laws, regulations and interpretations thereof. The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions related to federal, state and local income taxes existed as of December 31, 2023 or 2022 . |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 6. Related Parties The Trust considered the following entities, their directors, and certain employees to be related parties of the Trust as of December 31, 2023: DCG, Genesis, Grayscale, and Grayscale Securities. As of December 31, 2023 and 2022 , 15,002 and 3,258,770 , Shares of the Trust were held by related parties of the Trust, respectively. On November 20, 2023, it was announced that CoinDesk Indices, Inc., the Index Provider, previously an affiliate of the Sponsor and the Trust at the time of this event, was acquired by an unaffiliated third party. This transaction did not have any impact on the Trust, or disrupt the operations of the Trust. The Sponsor’s parent, an affiliate of the Trust, holds a minority interest in Coinbase, Inc., the parent company of the Custodian, that represents less than 1.0 % of Coinbase, Inc.’s ownership. In accordance with the Trust Agreement governing the Trust, the Trust pays a fee to the Sponsor, calculated as 2.5 % of the aggregate value of the Trust’s assets, less its liabilities (which include any accrued but unpaid expenses up to, but excluding, the date of calculation), as calculated and published by the Sponsor or its delegates in the manner set forth in the Trust Agreement (the “Sponsor’s Fee”). The Sponsor’s Fee accrues daily in U.S. dollars and is payable in ETC, monthly in arrears. The amount of ETC payable in respect of each daily U.S. dollar accrual will be determined by reference to the same U.S. dollar value of ETC used to determine such accrual. For purposes of these financial statements, the U.S. dollar value of ETC is determined by reference to the Digital Asset Trading Platform Market that the Trust considers its principal market as of 4:00 p.m., New York time, on each valuation date. The Trust held no Incidental Rights or IR Virtual Currency as of December 31, 2023 and 2022 . No Incidental Rights or IR Virtual Currencies have been distributed in payment of the Sponsor’s Fee during the years ended December 31, 2023, 2022 and 2021. As partial consideration for receipt of the Sponsor’s Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees and other expenses incurred by the Trust in the ordinary course of its affairs, excluding taxes, but including marketing fees; administrator fees, if any; custodian fees; transfer agent fees; trustee fees; the fees and expenses related to the listing, quotation or trading of the Shares on any secondary market (including customary legal, marketing and audit fees and expenses) in an amount up to $ 600,000 in any given fiscal year; ordinary course legal fees and expenses; audit fees; regulatory fees, including, if applicable, any fees relating to the registration of the Shares under the Securities Act or the Exchange Act; printing and mailing costs; the costs of maintaining the Trust’s website and applicable license fees (together, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Additional Trust Expense will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense. The Trust may incur certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of shareholders (including in connection with any Incidental Rights and any IR Virtual Currency), any indemnification of the Custodian or other agents, service providers or counterparties of the Trust, the fees and expenses related to the listing, quotation or trading of the Shares on any secondary market (including legal, marketing and audit fees and expenses) to the extent exceeding $ 600,000 in any given fiscal year and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively “Additional Trust Expenses”). In such circumstances, the Sponsor or its delegate (i) will instruct the Custodian to withdraw from the Digital Asset Account ETC, Incidental Rights and/or IR Virtual Currency in such quantity as may be necessary to permit payment of such Additional Trust Expenses and (ii) may either (x) cause the Trust (or its delegate) to convert such ETC, Incidental Rights and/or IR Virtual Currency into U.S. dollars or other fiat currencies at the Actual Exchange Rate or (y) when the Sponsor incurs such expenses on behalf of the Trust, cause the Trust (or its delegate) to deliver such ETC, Incidental Rights and/or IR Virtual Currency in kind to the Sponsor, in each case in such quantity as may be necessary to permit payment of such Additional Trust Expenses. Effective April 1, 2022, the Sponsor’s Fee was lowered from 3.0 % to 2.5 %. From the inception of the Trust through April 2022, the Sponsor directed up to one-third of the Sponsor’s Fee towards initiatives that supported development, marketing, and other community efforts relating to the Ethereum Classic Network at the sole discretion of the Sponsor. Historically, these amounts were contributed to the Ethereum Classic Cooperative, a 501(c)(3) non-profit whose mission is to steward the development of the Ethereum Classic protocol and to support the growth of a mature ecosystem around the protocol. The Ethereum Classic Cooperative is governed by a board of directors, which has historically included Barry E. Silbert, Digital Currency Group, Inc.’s Chief Executive Officer, as well as another employee of the Sponsor. Effective April 1, 2022, the Sponsor ceased directing up to one-third of the Sponsor’s Fee towards initiatives supporting the Ethereum Classic Network and Barry E. Silbert resigned from the Ethereum Classic Cooperative board of directors. For the years ended December 31, 2023, 2022 and 2021, the Trust incurred Sponsor’s Fees of $ 5,476,642 , $ 8,638,226 and $ 15,573,275 , respectively. As of December 31, 2023 and 2022 , there were no accrued and unpaid Sponsor’s Fees. In addition, the Sponsor may pay Additional Trust Expenses on behalf of the Trust, which are reimbursable by the Trust to the Sponsor. For the years ended December 31, 2023, 2022 and 2021 , the Sponsor did no t pay any Additional Trust Expenses on behalf of the Trust. On June 21, 2021, the Board of the Sponsor (the “Board”) approved the purchase by DCG, the parent company of the Sponsor, of up to $ 50 million worth of Shares of the Trust. Subsequently, DCG authorized such purchase. On March 2, 2022, the Board approved the purchase by DCG of up to an aggregate total of $ 200 million worth of Shares of the Trust and shares of any of the following five investment products the Sponsor also acts as the sponsor and manager of, including Grayscale Bitcoin Trust (BTC) (NYSE Arca: GBTC), Grayscale Bitcoin Cash Trust (BCH) (OTCQX: BCHG), Grayscale Digital Large Cap Fund LLC (OTCQX: GDLC), Grayscale Ethereum Trust (ETH) (OTCQX: ETHE), and Grayscale Stellar Lumens Trust (XLM) (OTCQX: GXLM). This increased DCG’s prior authorization to purchase up to $ 50 million worth of Shares by up to a maximum of $ 200 million. The Share purchase authorization does not obligate DCG to acquire any specific number of Shares in any period, and may be expanded, extended, modified, or discontinued at any time. From June 21, 2021 through December 31, 2022, DCG purchased a total of $ 45.3 million worth of Shares of the Trust. From January 1, 2022 through December 31, 2023 , DCG did no t purchase any Shares of the Trust under this authorization. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 7. Risks and Uncertainties The Trust is subject to various risks including market risk, liquidity risk, and other risks related to its concentration in a single asset, ETC. Investing in ETC is currently highly speculative and volatile. The net asset value of the Trust, calculated by reference to the principal market price, relates primarily to the value of ETC held by the Trust, and fluctuations in the price of ETC could materially and adversely affect an investment in the Shares of the Trust. The price of ETC has a limited history. During such history, ETC prices have been volatile and subject to influence by many factors, including the levels of liquidity. If the Digital Asset Markets continue to experience significant price fluctuations, the Trust may experience losses. Several factors may affect the price of ETC, including, but not limited to, global ETC supply and demand, theft of ETC from global trading platforms or vaults, competition from other forms of digital currency or payment services, global or regional political, economic or financial conditions, and other unforeseen events and situations. The ETC held by the Trust are commingled and the Trust’s shareholders have no specific rights to any specific ETC. In the event of the insolvency of the Trust, its assets may be inadequate to satisfy a claim by its shareholders. There is currently no clearing house for ETC, nor is there a central or major depository for the custody of ETC. There is a risk that some or all of the Trust’s ETC could be lost or stolen. There can be no assurance that the Custodian will maintain adequate insurance or that such coverage will cover losses with respect to the Trust’s ETC. Further, transactions in ETC are irrevocable. Stolen or incorrectly transferred ETC may be irretrievable. As a result, any incorrectly executed ETC transactions could adversely affect an investment in the Shares. The SEC has stated that certain digital assets may be considered “securities” under the federal securities laws. The test for determining whether a particular digital asset is a “security” is complex and difficult to apply, and the outcome is difficult to predict. Public, though non-binding, statements by senior officials at the SEC have indicated that the SEC did not consider Bitcoin or Ethereum to be securities, and does not currently consider Bitcoin to be a security. The SEC staff has also provided informal assurances via no-action letter to a handful of promoters that their digital assets are not securities. On the other hand, the SEC has brought enforcement actions against the issuers and promoters of several other digital assets on the basis that the digital assets in question are securities. If ETC is determined to be a “security” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for ETC. For example, it may become more difficult for ETC to be traded, cleared and custodied as compared to other digital assets that are not considered to be securities, which could, in turn, negatively affect the liquidity and general acceptance of ETC and cause users to migrate to other digital assets. As such, any determination that ETC is a security under federal or state securities laws may adversely affect the value of ETC and, as a result, an investment in the Shares. In addition, if ETC is in fact a security, the Trust could be considered an unregistered “investment company” under the Investment Company Act of 1940, which could necessitate the Trust’s liquidation. In this case, the Trust and the Sponsor may be deemed to have participated in an illegal offering of securities and there is no guarantee that the Sponsor will be able to register the Trust under the Investment Company Act of 1940 at such time or take such other actions as may be necessary to ensure the Trust’s activities comply with applicable law, which could force the Sponsor to liquidate the Trust. To the extent a private key required to access an ETC address is lost, destroyed or otherwise compromised and no backup of the private keys are accessible, the Trust may be unable to access the ETC controlled by the private key and the private key will not be capable of being restored by the Ethereum Classic Network. The processes by which ETC transactions are settled are dependent on the ETC peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of ETC. The Trust relies on third-party service providers to perform certain functions essential to its operations. Any disruptions to the Trust’s service providers’ business operations resulting from business failures, financial instability, security failures, government mandated regulation or operational problems could have an adverse impact on the Trust’s ability to access critical services and be disruptive to the operations of the Trust. The Sponsor and the Trust may be subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business. |
Quarterly Statements of Operati
Quarterly Statements of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Statements of Operations | 8. Quarterly Statements of Operations Fiscal Year Ended December 31, 2023 Three Months Ended (Amounts in thousands) Mar-31, 2023 Jun-30, 2023 Sept-30, 2023 Dec-31, 2023 Year Ended Expenses Sponsor's Fee, related party $ 1,511 $ 1,365 $ 1,252 $ 1,348 $ 5,476 Net investment loss $ ( 1,511 ) $ ( 1,365 ) $ ( 1,252 ) $ ( 1,348 ) $ ( 5,476 ) Net realized and unrealized gain (loss) from: Net realized gain on investment in ETC 962 812 698 797 3,269 Net change in unrealized appreciation (depreciation) on investment in ETC 56,592 ( 12,304 ) ( 38,781 ) 63,331 68,838 Net realized and unrealized gain (loss) on investment 57,554 ( 11,492 ) ( 38,083 ) 64,128 72,107 Net increase (decrease) in net assets resulting from operations $ 56,043 $ ( 12,857 ) $ ( 39,335 ) $ 62,780 $ 66,631 Fiscal Year Ended December 31, 2022 Three Months Ended (Amounts in thousands) Mar-31, 2022 Jun-30, 2022 Sept-30, 2022 Dec-31, 2022 Year Ended Expenses Sponsor's Fee, related party $ 2,803 $ 1,965 $ 2,286 $ 1,584 $ 8,638 Net investment loss $ ( 2,803 ) $ ( 1,965 ) $ ( 2,286 ) $ ( 1,584 ) $ ( 8,638 ) Net realized and unrealized gain (loss) from: Net realized gain on investment in ETC 2,127 1,398 1,719 1,017 6,261 Net change in unrealized appreciation (depreciation) on investment in ETC 162,740 ( 395,089 ) 155,933 ( 141,346 ) ( 217,762 ) Net realized and unrealized gain (loss) on investment 164,867 ( 393,691 ) 157,652 ( 140,329 ) ( 211,501 ) Net increase (decrease) in net assets resulting from operations $ 162,064 $ ( 395,656 ) $ 155,366 $ ( 141,913 ) $ ( 220,139 ) |
Financial Highlights Per Share
Financial Highlights Per Share Performance | 12 Months Ended |
Dec. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights Per Share Performance | 9. Financial Highlights Per Share Performance Years Ended December 31, 2023 2022 2021 Per Share Data: Principal market net asset value, beginning of year $ 13.39 $ 29.12 $ 5.08 Net increase (decrease) in net assets from investment operations: Net investment loss ( 0.39 ) ( 0.62 ) ( 1.12 ) Net realized and unrealized gain (loss) 5.15 ( 15.11 ) 25.16 Net increase (decrease) in net assets resulting from operations 4.76 ( 15.73 ) 24.04 Principal market net asset value, end of year $ 18.15 $ 13.39 $ 29.12 Total return 35.55 % - 54.02 % 473.23 % Ratios to average net assets: Net investment loss - 2.50 % - 2.64 % - 3.00 % Expenses - 2.50 % - 2.64 % - 3.00 % An individual shareholder’s return, ratios, and per Share performance may vary from those presented above based on the timing of Share transactions. The amount shown for a Share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the number of Shares issued in Creations occurring at an operational value derived from an operating metric as defined in the Trust Agreement. Total return is calculated assuming an initial investment made at the Principal Market NAV at the beginning of the year and assuming redemption on the last day of the year. |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2023 | |
Indemnifications Disclosure [Abstract] | |
Indemnifications | 10. Indemnifications In the normal course of business, the Trust enters into certain contracts that provide a variety of indemnities, including contracts with the Sponsor and affiliates of the Sponsor, DCG and its officers, directors, employees, subsidiaries and affiliates, and the Custodian as well as others relating to services provided to the Trust. The Trust’s maximum exposure under these and its other indemnities is unknown. However, no liabilities have arisen under these indemnities in the past and, while there can be no assurances in this regard, there is no expectation that any will occur in the future. Therefore, the Sponsor does not consider it necessary to record a liability in this regard. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events As of the close of business on February 19, 2024 , the fair value of ETC determined in accordance with the Trust’s accounting policy was $ 26.93 per ETC. There are no known events that have occurred that require disclosure other than that which has already been disclosed in these notes to the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principal Market and Fair Value Determination | Principal Market and Fair Value Determination To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s net asset value in accordance with U.S. GAAP (“Principal Market NAV”), the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for ETC in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that ETC is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust only receives ETC in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets (referred to as “Trading Platform Markets” in this Annual Report), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”). In determining which of the eligible Digital Asset Markets is the Trust’s principal market, the Trust reviews these criteria in the following order: First, the Trust reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering (“AML”) and know-your-customer (“KYC”) regulations, and non-Digital Asset Trading Platform Markets that the Trust reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market. Second, the Trust sorts these Digital Asset Markets from high to low by market-based volume and level of activity of ETC traded on each Digital Asset Market in the trailing twelve months. Third, the Trust then reviews pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market. Fourth, the Trust then selects a Digital Asset Market as its principal market based on the highest market-based volume, level of activity and price stability in comparison to the other Digital Asset Markets on the list. Based on information reasonably available to the Trust, Trading Platform Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Trading Platform Markets as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis, a Trading Platform Market has been selected as the Trust’s principal market. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market. The cost basis of ETC received in connection with a creation order is recorded by the Trust at the fair value of ETC at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. |
Investment Transactions and Revenue Recognition | Investment Transactions and Revenue Recognition The Trust considers investment transactions to be the receipt of ETC for Share creations and the delivery of ETC for Share redemptions or for payment of expenses in ETC. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in ETC. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the ‘exit price’) in an orderly transaction between market participants at the measurement date. GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment. • Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly. • Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust. Fair Value Measurement Using (Amounts in thousands) Amount at Level 1 Level 2 Level 3 December 31, 2023 Assets Investment in ETC $ 253,958 $ 253,958 $ - $ - December 31, 2022 Assets Investment in ETC $ 187,327 $ 187,327 $ - $ - |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. ASU 2023-08 is effective for annual and interim reporting periods beginning after December 15, 2024. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. The Trust adopted this new guidance on January 1, 2024, with no material impact on its financial statements and disclosures as the Trust historically used fair value as its method of accounting for ETC in accordance with its classification as an investment company for accounting purposes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Fair Value Estimates | Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust. Fair Value Measurement Using (Amounts in thousands) Amount at Level 1 Level 2 Level 3 December 31, 2023 Assets Investment in ETC $ 253,958 $ 253,958 $ - $ - December 31, 2022 Assets Investment in ETC $ 187,327 $ 187,327 $ - $ - |
Fair Value of ETC (Tables)
Fair Value of ETC (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Investment Holdings, Schedule of Investments | 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, 2020 12,275,746.83121040 $ 69,604 ETC contributed 249,223.57301485 2,716 ETC distributed for Sponsor's Fee, related party ( 369,076.41374415 ) ( 15,574 ) Net change in unrealized appreciation on investment in ETC - 337,929 Net realized gain on investment in ETC - 12,791 Balance at December 31, 2021 12,155,893.99048110 $ 407,466 ETC contributed - - ETC distributed for Sponsor's Fee, related party ( 314,749.01904454 ) ( 8,638 ) Net change in unrealized depreciation on investment in ETC - ( 217,762 ) Net realized gain on investment in ETC - 6,261 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 |
Quarterly Statements of Opera_2
Quarterly Statements of Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Statements of Operations | Fiscal Year Ended December 31, 2023 Three Months Ended (Amounts in thousands) Mar-31, 2023 Jun-30, 2023 Sept-30, 2023 Dec-31, 2023 Year Ended Expenses Sponsor's Fee, related party $ 1,511 $ 1,365 $ 1,252 $ 1,348 $ 5,476 Net investment loss $ ( 1,511 ) $ ( 1,365 ) $ ( 1,252 ) $ ( 1,348 ) $ ( 5,476 ) Net realized and unrealized gain (loss) from: Net realized gain on investment in ETC 962 812 698 797 3,269 Net change in unrealized appreciation (depreciation) on investment in ETC 56,592 ( 12,304 ) ( 38,781 ) 63,331 68,838 Net realized and unrealized gain (loss) on investment 57,554 ( 11,492 ) ( 38,083 ) 64,128 72,107 Net increase (decrease) in net assets resulting from operations $ 56,043 $ ( 12,857 ) $ ( 39,335 ) $ 62,780 $ 66,631 Fiscal Year Ended December 31, 2022 Three Months Ended (Amounts in thousands) Mar-31, 2022 Jun-30, 2022 Sept-30, 2022 Dec-31, 2022 Year Ended Expenses Sponsor's Fee, related party $ 2,803 $ 1,965 $ 2,286 $ 1,584 $ 8,638 Net investment loss $ ( 2,803 ) $ ( 1,965 ) $ ( 2,286 ) $ ( 1,584 ) $ ( 8,638 ) Net realized and unrealized gain (loss) from: Net realized gain on investment in ETC 2,127 1,398 1,719 1,017 6,261 Net change in unrealized appreciation (depreciation) on investment in ETC 162,740 ( 395,089 ) 155,933 ( 141,346 ) ( 217,762 ) Net realized and unrealized gain (loss) on investment 164,867 ( 393,691 ) 157,652 ( 140,329 ) ( 211,501 ) Net increase (decrease) in net assets resulting from operations $ 162,064 $ ( 395,656 ) $ 155,366 $ ( 141,913 ) $ ( 220,139 ) |
Financial Highlights Per Shar_2
Financial Highlights Per Share Performance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Summary of Per Share Data | Years Ended December 31, 2023 2022 2021 Per Share Data: Principal market net asset value, beginning of year $ 13.39 $ 29.12 $ 5.08 Net increase (decrease) in net assets from investment operations: Net investment loss ( 0.39 ) ( 0.62 ) ( 1.12 ) Net realized and unrealized gain (loss) 5.15 ( 15.11 ) 25.16 Net increase (decrease) in net assets resulting from operations 4.76 ( 15.73 ) 24.04 Principal market net asset value, end of year $ 18.15 $ 13.39 $ 29.12 Total return 35.55 % - 54.02 % 473.23 % Ratios to average net assets: Net investment loss - 2.50 % - 2.64 % - 3.00 % Expenses - 2.50 % - 2.64 % - 3.00 % |
Organization - Additional Infor
Organization - Additional Information - (Detail) | Dec. 31, 2023 shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Common units issued, minimum basket | 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of valuation techniques and observable inputs can vary by investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investment in ETC | $ 253,958 | $ 187,327 | $ 407,466 | $ 69,604 |
Level 1 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investment in ETC | 253,958 | 187,327 | ||
Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investment in ETC | 0 | 0 | ||
Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Investment in ETC | $ 0 | $ 0 |
Fair Value of ETC - Additional
Fair Value of ETC - Additional information (Detail) | Dec. 31, 2023 ETC $ / shares | Dec. 31, 2022 ETC $ / shares | Dec. 31, 2021 ETC $ / shares |
Fair Value Disclosures [Abstract] | |||
Investment owned balance shares held by custodian | ETC | 11,548,776.1723 | 11,841,144.97143656 | 12,155,893.9904811 |
Ethereum classic Fair Value Per Share | $ / shares | $ 21.99 | $ 15.82 | $ 33.52 |
Fair Value of ETC - Summary of
Fair Value of ETC - Summary of changes in quantity of ETC and the respective fair value (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 USD ($) ETC | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) ETC | Dec. 31, 2022 USD ($) ETC | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) ETC | Dec. 31, 2023 USD ($) ETC | Dec. 31, 2022 USD ($) ETC | Dec. 31, 2021 USD ($) ETC | |
Fair Value Disclosures [Abstract] | |||||||||||
Investment Owned, Balance | ETC | 11,841,144.97143656 | 12,155,893.9904811 | 11,841,144.97143656 | 12,155,893.9904811 | 12,275,746.8312104 | ||||||
ETC contributed | ETC | 0 | 0 | 249,223.57301485 | ||||||||
ETC distributed for Sponsor's Fee, related party | ETC | (292,368.79913656) | (314,749.01904454) | (369,076.41374415) | ||||||||
Net change in unrealized (depreciation) appreciation on investment in ETC | ETC | 0 | 0 | 0 | ||||||||
Net realized gain (loss) on investment in ETC | ETC | 0 | 0 | 0 | ||||||||
Investment Owned, Balance | ETC | 11,548,776.1723 | 11,841,144.97143656 | 11,548,776.1723 | 11,841,144.97143656 | 12,155,893.9904811 | ||||||
Investment Owned, at Fair Value | $ | $ 187,327 | $ 407,466 | $ 187,327 | $ 407,466 | $ 69,604 | ||||||
ETC contributed | $ | 0 | 0 | 2,716 | ||||||||
ETC distributed for Sponsor's Fee, related party | $ | (5,476) | (8,638) | (15,574) | ||||||||
Net change in unrealized appreciation (depreciation) on investment in ETC | $ | $ 63,331 | $ (38,781) | $ (12,304) | 56,592 | $ (141,346) | $ 155,933 | $ (395,089) | 162,740 | 68,838 | (217,762) | 337,929 |
Net realized gain (loss) on investment in ETC | $ | 797 | $ 698 | $ 812 | $ 962 | 1,017 | $ 1,719 | $ 1,398 | $ 2,127 | 3,269 | 6,261 | 12,791 |
Investment Owned, at Fair Value | $ | $ 253,958 | $ 187,327 | $ 253,958 | $ 187,327 | $ 407,466 |
Creations and Redemptions of _2
Creations and Redemptions of Shares - Additional Information (Detail) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Share represented as ETC | 0.8253 | 0.8462 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Federal income tax rate | 21% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 18 Months Ended | 21 Months Ended | 24 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2023 USD ($) Right shares | Dec. 31, 2022 USD ($) Right shares | Dec. 31, 2021 USD ($) Right | Dec. 31, 2022 USD ($) Right shares | Dec. 31, 2023 USD ($) Right shares | Dec. 31, 2023 USD ($) Right shares | Mar. 02, 2022 USD ($) | Jun. 21, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||||||
Shares of the Trust, held by related parties | shares | 15,002 | 3,258,770 | 3,258,770 | 15,002 | 15,002 | ||||
Number of Incidental Rights held | Right | 0 | 0 | 0 | 0 | 0 | ||||
Number of Incidental Rights distributed | Right | 0 | 0 | 0 | ||||||
Related party sponsor fee percentage | 3% | 2.50% | 2.50% | ||||||
Additional trust expenses paid by sponsor | $ 0 | $ 0 | $ 0 | ||||||
Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Sponsor's Fees incurred | 5,476,642 | 8,638,226 | $ 15,573,275 | ||||||
Sponsor's Fee payable, related party | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Sponsor's Parent | Coinbase Inc | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of minority interest owned | 1% | 1% | 1% | ||||||
Sponsor | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party maximum transaction in a fiscal year | $ 600,000 | ||||||||
Non Sponsor Paid Expenses | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party maximum transaction in a fiscal year | $ 600,000 | ||||||||
D C G | |||||||||
Related Party Transaction [Line Items] | |||||||||
Value of shares purchased | $ 45,300,000 | $ 0 | |||||||
D C G | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common Stock Value Shares Authorized | $ 200,000,000 | $ 50,000,000 |
Quarterly Statements of Opera_3
Quarterly Statements of Operations - Schedule of Quarterly Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses: | |||||||||||
Sponsor's Fee, related party | $ 1,348 | $ 1,252 | $ 1,365 | $ 1,511 | $ 1,584 | $ 2,286 | $ 1,965 | $ 2,803 | $ 5,476 | $ 8,638 | $ 15,574 |
Net investment loss | (1,348) | (1,252) | (1,365) | (1,511) | (1,584) | (2,286) | (1,965) | (2,803) | (5,476) | (8,638) | (15,574) |
Net realized and unrealized gain (loss) from: | |||||||||||
Net realized gain (loss) on investment in ETC | 797 | 698 | 812 | 962 | 1,017 | 1,719 | 1,398 | 2,127 | 3,269 | 6,261 | 12,791 |
Net change in unrealized appreciation (depreciation) on investment in ETC | 63,331 | (38,781) | (12,304) | 56,592 | (141,346) | 155,933 | (395,089) | 162,740 | 68,838 | (217,762) | 337,929 |
Net realized and unrealized gain (loss) on investment | 64,128 | (38,083) | (11,492) | 57,554 | (140,329) | 157,652 | (393,691) | 164,867 | 72,107 | (211,501) | $ 350,720 |
Net increase (decrease) in net assets resulting from operations | $ 62,780 | $ (39,335) | $ (12,857) | $ 56,043 | $ (141,913) | $ 155,366 | $ (395,656) | $ 162,064 | $ 66,631 | $ (220,139) |
Financial Highlights Per Shar_3
Financial Highlights Per Share Performance - Summary of Per Share Data (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Per Share Data: | |||
Principal market net asset value, beginning of year | $ 13.39 | $ 29.12 | $ 5.08 |
Net (decrease) increase in net assets from investment operations: | |||
Net investment loss | (0.39) | (0.62) | (1.12) |
Net realized and unrealized gain (loss) | 5.15 | (15.11) | 25.16 |
Net increase (decrease) in net assets from investment operations: | 4.76 | (15.73) | 24.04 |
Principal market net asset value, end of year | $ 18.15 | $ 13.39 | $ 29.12 |
Total return | 35.55% | (54.02%) | 473.23% |
Ratios to average net assets: | |||
Net investment loss | (2.50%) | (2.64%) | (3.00%) |
Expenses | (2.50%) | (2.64%) | (3.00%) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event | Feb. 19, 2024 $ / shares |
Subsequent Event [Line Items] | |
ETC fair value per share | $ 26.93 |
Subsequent event, date | Feb. 19, 2024 |