Bitwise Ethereum ETF (ETHW) 10-Q 8 Nov 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 06, 2024
Cover [Abstract]
Entity Registrant Name	BITWISE ETHEREUM ETF
Document Type	10-Q
Document Quarterly Report	true
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0002013744
Trading Symbol	ETHW
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		13,440,000
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity File Number	001-42159
Entity Tax Identification Number	99-6361348
Entity Address, Address Line One	250 Montgomery Street
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	415
Local Phone Number	707-3663
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Title of 12(b) Security	Bitwise Ethereum ETF Shares
Security Exchange Name	NYSEArca

Statement of Assets and Liabili

Statement of Assets and Liabilities $ in Thousands	Sep. 30, 2024 USD ($) $ / shares shares
Assets [Abstract]
Investment in ether, at fair value (cost $328,122)	$ 259,851	[1]
Cash	0
Total assets	259,851
Liabilities [Abstract]
Sponsor Fee payable	0
Total liabilities	0
Net Assets	$ 259,851	[1],[2]
Shares issued and outstanding, no par value, unlimited amount authorized | shares	13,960,000
Net asset value per share | $ / shares	$ 18.61	[3]
[1] No comparative period presented as the Trust commenced operations on July 22, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. Net asset value per share calculated using the principal market valuation as of the date of the financial statements.

Statement of Assets and Liabi_2

Statement of Assets and Liabilities (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares
Statement of Financial Position [Abstract]
Investment in ether, at cost | $	$ 328,122	[1]
Common stock, no par value | $ / shares	$ 0
Common Stock, Shares Authorized, Unlimited [Fixed List]	Unlimited
[1] No comparative period presented as the Trust commenced operations on July 22, 2024.

Schedules of Investment

Schedules of Investment $ in Thousands	Sep. 30, 2024 USD ($)	[1]
Schedule of Investments [Line Items]
Cost	$ 328,122
Fair Value	259,851
Net Assets	$ 259,851	[2]
Investment Owned, Percent of Net Assets	100%
Percentage Of Net Assets	100%
Ether
Schedule of Investments [Line Items]
Quantity of Ether	100,152.9571	[3]
Cost	$ 328,122	[3]
Fair Value	$ 259,851	[3]
Investment Owned, Percent of Net Assets	100%	[3]
[1] No comparative period presented as the Trust commenced operations on July 22, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. Crypto assets do not have a singular country or geographic region, therefore country information is omitted.

Statement of Operations

Statement of Operations $ in Thousands	2 Months Ended
	Sep. 30, 2024 USD ($)	[1]
Investment income
Investment income	$ 0
Expenses
Sponsor Fee	91
Total Expenses	91
Less: Waivers and Reimbursement	(91)
Net Expenses	0
Net investment loss	0
Net realized and unrealized gain (loss)
Net realized gain (loss) on investment in ether transferred to pay Sponsor Fee	0	[2]
Net realized gain (loss) on investment in ether sold for redemptions	(1,116)
Net change in unrealized appreciation (depreciation) on investment in ether	(68,271)	[2]
Net realized and unrealized gain (loss)	(69,387)
Net increase (decrease) in net assets resulting from operations	$ (69,387)
[1] No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024

Statement of Changes in Net Ass

Statement of Changes in Net Assets $ in Thousands	2 Months Ended
	Sep. 30, 2024 USD ($) shares
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract]
Net investment loss	$ 0	[1]
Net realized gain (loss) on investment in ether transferred to pay Sponsor Fee	0	[1],[2]
Net realized gain (loss) on investment in ether sold for redemptions	(1,116)	[1]
Net change in unrealized appreciation (depreciation)	(68,271)	[1],[2]
Net increase (decrease) in net assets resulting from operations	(69,387)	[3]
Increase (decrease) in net assets from capital share transactions
Creations for Shares issued	331,371	[3]
Redemptions for Shares redeemed	(2,133)	[3]
Net increase (decrease) in net assets resulting from capital share transactions	329,238	[3]
Total increase (decrease) in net assets from operations and capital share transactions	259,851	[3],[4]
Net assets
Beginning of period	0	[3],[4]
End of period	$ 259,851	[3],[5]
Increase (Decrease) in Partners' Capital [Roll Forward]
Shares issued | shares	14,090,000	[3]
Shares redeemed | shares	(130,000)	[3]
Net increase (decrease) in Shares issued and outstanding | shares	13,960,000	[3]
[1] No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024 No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. On May 28, 2024, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, purchased 8 Shares at a per-share price of $ 25.00 for $ 200.00 . in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act (the “Seed Shares”). Delivery of the Seed Shares was made on May 28, 2024. Prior to the commencement of operations on July 22, 2024, BAM redeemed the entirety of its 8 Seed Shares for $ 200.00 . Additionally, on July 22, 2024, Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased the initial 100,000 Shares of the Trust (the “Seed Baskets”) for $ 2,500,000 , at a per-share price of $ 25.00 . No comparative period presented as the Trust commenced operations on July 22, 2024.

Statement of Changes in Net A_2

Statement of Changes in Net Assets (Parenthetical) - USD ($)	Jul. 31, 2024	Jul. 22, 2024	May 28, 2024
BAM
Shares purchased			8
Purchase price per share			$ 25
Purchase of shares, value			$ 200
Shares redeemed	8	8
Shares redeemed, value	$ 200	$ 200
BIM
Shares purchased		100,000
Purchase price per share		$ 25
Purchase of shares, value		$ 2,500,000

Statement of Cash Flows

Statement of Cash Flows $ in Thousands	2 Months Ended
	Sep. 30, 2024 USD ($)	[1]
Cash flow from operating activities
Net increase (decrease) in net assets resulting from operations	$ (69,387)
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of ether	(331,371)
Proceeds from ether sold	2,133
Net realized (gain) loss from investment in ether transferred to pay Sponsor Fee	0	[2]
Net realized (gain) loss from investment in ether sold for redemptions	1,116
Net change in unrealized (appreciation) on investment in ether	68,271	[2]
Increase (Decrease) in Sponsor Fee payable	0
Net cash provided by (used in) operating activities	(329,238)
Cash flow from financing activities
Creations for Shares issued	331,371
Redemptions for Shares redeemed	(2,133)
Net cash provided by (used in) financing activities	329,238
Net increase (decrease) in cash	0
Cash, beginning of period	0	[3]
Cash, end of period	$ 0
[1] No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024 No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. Prior to the commencement of operations on July 22, 2024, BAM redeemed the 8 Seed Shares for $ 200 .

Statement of Cash Flows (Parent

Statement of Cash Flows (Parenthetical)	Jul. 22, 2024 shares
BAM
Number of shares redeemed	200

Pay vs Performance Disclosure

Pay vs Performance Disclosure $ in Thousands	2 Months Ended
	Sep. 30, 2024 USD ($)
Pay vs Performance Disclosure
Net Income (Loss)	$ (69,387)	[1]
[1] No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024.

Insider Trading Arrangements

Insider Trading Arrangements	2 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b51 Arr Modified Flag	false
Non Rule 10b51 Arr Modified Flag	false

Organization

Organization	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Bitwise Ethereum ETF (the “Trust”), is an investment trust organized on February 16, 2024, under Delaware law pursuant to a Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Trust’s investment objective is to seek to provide exposure to the value of ether held by the Trust, less the expenses of the Trust’s operations, generally just the sponsor’s management fee. In seeking to achieve its investment objective, the Trust’s sole asset is ether. The Trust is an Exchange Traded Product (“ETP”) that issues common shares of beneficial interest (“Shares”) that are listed on the NYSE Arca, Inc. (the “Exchange”) under the ticker symbol “ETHW,” providing investors with an efficient means to obtain market exposure to the price of ether. Bitwise Investment Advisers, LLC (the “Sponsor”) serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the U.S. and the listing of Shares on the Exchange. The Sponsor develops a marketing plan for the Trust, prepares marketing materials regarding the Shares, and operates the marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises managerial control of the Trust as permitted under the Trust Agreement. The Sponsor has agreed to pay all normal operating expenses of the Trust (except for litigation expenses and other extraordinary expenses) out of the Sponsor’s unitary management fee (the “Sponsor Fee”) and may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the $ 500,000 per annum. The Sponsor also paid the costs of the Trust’s organization. Delaware Trust Company acts as the trustee of the Trust (the “Trustee”) for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act (“DSTA”) which requires that the Trust have at least one trustee with a principal place of business in the State of Delaware. The Trust purchases and sells ether directly and it creates or redeems its Shares in cash-settled transactions in blocks of 10,000 Shares at the Trust’s net asset value (“NAV”) per-share and only in transactions with financial firms that are authorized to purchase or redeem Shares with the Trust (each, an “Authorized Participant”). An Authorized Participant will deliver, or cause to be delivered, cash to the Trust when it purchases Shares from the Trust, and the Trust will deliver cash to an Authorized Participant, or its designee, when it redeems Shares with the Trust. Authorized Participants, and their customers, may then, in turn, offer Shares to the public at prices that depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions at the time of a transaction. Investors who buy or sell Shares during the day from their broker may do so at a premium or discount relative to the NAV of the Shares. The Trust's registration statement on Form S-1 relating to its continuous public offering of Shares was declared effective by the U.S. Securities and Exchange Commission on July 22, 2024 and the Shares of the Trust were listed on the Exchange on July 23, 2024. The statement of assets and liabilities and schedule of investment as of September 30, 2024, and the statements of operations, cash flows, and changes in net assets for the period ended September 30, 2024, have been prepared on behalf of the Trust and are unaudited. In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations for the period ended September 30, 2024, and for all interim periods presented have been made. In addition, interim period results are not necessarily indicative of results for a full-year period. Prior to the commencement of operations on July 22, 2024, on May 28, 2024, Bitwise Asset Management, Inc. ("BAM"), the parent of the Sponsor, purchased 8 Shares at a per-share price of $ 25.00 for $ 200.00 in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act (the “Seed Shares”). Delivery of the Seed Shares was made on May 28, 2024. On July 22, 2024, BAM redeemed the entirety of its 8 Seed Shares for $ 200.00 . Additionally, on July 22, 2024, Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased the initial 100,000 Shares of the Trust (the “Seed Baskets”) for $ 2,500,000 , at $ 25.00 per-share. BIM acted as a statutory underwriter in connection with the initial purchase of the Seed Baskets. On July 23, 2024, BIM sold all of its 100,000 Shares of the Trust for cash.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies. Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results could differ from those estimates. Cash Generally, the Trust does not intend to hold any cash. Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits. Investment Transactions and Revenue Recognition 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 investment in ether. 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 Fee in ether. Investment Valuation - Principal Market NAV U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value investments held at fair value. For financial statement reporting, the Trust identifies and determines the ether principal market (or in the absence of a principal market, the most advantageous market) for U.S. GAAP purposes consistent with the application of the fair value measurement framework in FASB ASC Topic 820. A principal market is the market with the greatest volume and activity level for the asset or liability. The Principal Market NAV and the Principal Market NAV per-share are calculated using the fair value of ether based on the price provided by this exchange market, as of 4:00 p.m. ET on the measurement date for U.S. GAAP purposes. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its principal market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 p.m. ET for ether. The Sponsor then identifies that market as the principal market for ether during that period, and uses the price for ether from that venue at 4:00 ET as the principal market price. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. The Principal Market and the Principal Market Price for ether, which comprised the majority of the Trust’s assets for the period from July 22, 2024 to September 30, 2024, was Crypto.com with a price of $ 2,594.54 as of September 30, 2024. Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Unobservable inputs, including the Trust's assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date. The cost basis of the investment in ether recorded by the Trust for financial reporting purposes is the fair value of ether at the time of transfer. 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. Given that ether is actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. The following summarizes the Trust’s assets accounted for at fair value at September 30, 2024* (amounts in thousands): Level 1 Level 2 Level 3 Total Assets Investment in ether, at fair value $ 259,851 $ — $ — $ 259,851 * No comparative period presented as the Trust commenced operations on July 22, 2024 . Calculation of Net Asset Value (NAV) and NAV per-share On each business day, as soon as practicable after 4:00 p.m. ET, the NAV of the Trust is obtained by subtracting all accrued fees and other liabilities of the Trust from the fair value of the ether and other assets held by the Trust. The Bank of New York Mellon (the “Administrator”) computes the NAV per-share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself is not subject to U.S. federal income tax. Instead, the Trust’s income and expenses “flow through” to the shareholders, and the Administrator reports the Trust’s income, gains, losses, and deductions to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust, and does not believe that there are any uncertain tax positions that require recognition of a tax liability as of September 30, 2024. The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of September 30, 2024 and December 31, 2023, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates in; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of September 30, 2024, all tax years since inception remain open for examination. There were no examinations in progress at period end. Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares are borne directly by the Sponsor. The Trust is not obligated to reimburse the Sponsor.

Fair Value of Ether

Fair Value of Ether	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value of Ether	3. Fair Value of ether As of September 30, 2024*, the Trust held a net closing balance of 100,152.9571 ether with a total market value of $ 259,503,322 based on the CME CF Ether – Dollar Reference Rate – New York Variant ("Pricing Index ") price of $ 2,591.07 , used to determine the Trust's NAV. The total market value of the Trust's ether held was $ 259,850,853 based on the price of ether (Lukka Prime Rate) in the principal market (Crypto.com) of $ 2,594.54 , used to determine the Trust's Principal Market NAV. The following represents the changes in quantity of ether and the respective fair value for the period from July 22, 2024 (commencement of operations) to September 30, 2024*: Quantity of ether Fair Value Beginning balance as of July 22, 2024 (commencement of operations) 0.0000 $ 0 Purchases 101,085.6138 331,371 Sales for the redemption of Shares ( 932.6567 ) ( 2,133 ) ether transferred for Sponsor Fee — — Net realized gain (loss) on investment in ether transferred to pay Sponsor Fee — — Net realized gain (loss) on investment in ether sold for redemptions — ( 1,116 ) Change in unrealized appreciation (depreciation) on investment in ether — ( 68,271 ) Ending balance as of September 30, 2024* 100,152.9571 $ 259,851 * No comparative period presented as the Trust commenced operations on July 22, 2024.

Related Party Transactions and

Related Party Transactions and Agreements	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions and Agreements	4. Related Party Transactions and Agreements The Trust pays the Sponsor Fee of 0.20 % per annum of the Trust’s ether holdings. For the six-month period commencing on July 23, 2024 , the day the Shares are initially listed on the Exchange, the Sponsor has agreed to waive the entire Sponsor Fee on the first $ 500 million of Trust assets through January 22, 2025. The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement. Except during periods when all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily and will be payable in ether monthly in arrears. The Administrator calculates the Sponsor Fee on a daily basis by applying a 0.20 % annualized rate to the Trust’s total ether holdings, and the amount of ether payable in respect of each daily accrual shall be determined by reference to the Pricing Index . The NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On or about the last day of each month, an amount of ether will be transferred from the Trust Ether Account to the Sponsor Ether Account equal to the sum of all daily Sponsor Fees accrued for the month in U.S. dollars divided by the Pricing Index on the last day of the month. The Trust is not responsible for paying any fees or costs associated with the transfer of ether to the Sponsor. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee’s monthly fee and out-of-pocket expenses, the fees of the Trust’s regular service providers (Cash Custodian, Ether Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs, audit fees and up to $ 500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of $ 500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization. The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Ethereum network fees and similar transaction fees, 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 Shareholders (including, for example, in connection with any fork of the Ethereum blockchain, any Incidental Rights and any IR Asset, any indemnification of the Cash Custodian, Ether Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters. See Note 1 for further discussion on related party capital transactions. As of September 30, 2024, the Sponsor owned no Shares of the Trust.

Creation and Redemption of Shar

Creation and Redemption of Shares	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Creation and Redemption of Shares	5. Creation and Redemption of Shares When the Trust creates or redeems its Shares, it does so only in Baskets (blocks of 10,000 Shares) based on the quantity of ether attributable to each Share of the Trust (net of accrued expenses and liabilities) multiplied by the number of Shares comprising a Basket ( 10,000 ). This is called the “Basket Amount.” The Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants. The Trust has entered into the Cash Custody Agreement with BNY Mellon under which BNY Mellon acts as custodian of the Trust’s cash and cash equivalents. The Trust only creates or redeems its Shares at NAV. Authorized Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions described below, and (2) DTC Participants. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement. The Authorized Participant Agreement provides the procedures for the creation and redemption of Baskets and for the delivery of the cash or Shares required for such creation and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended by the Trust, without the consent of any Shareholder or Authorized Participant. Authorized Participants must pay the Transfer Agent a non-refundable fee for each order they place to create or redeem one or more Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by the Sponsor in its sole discretion. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares. Each Authorized Participant is required to be registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, and a member in good standing with FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and is qualified to act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime.

Concentration of Risk

Concentration of Risk	9 Months Ended
	Sep. 30, 2024
Risks and Uncertainties [Abstract]
Concentration of Risk	6. Concentration of Risk Substantially all the Trust’s assets are holdings of ether, which creates a concentration risk associated with fluctuations in the price of ether. Accordingly, a decline in the price of ether will have an adverse effect on the value of the Shares of the Trust. The trading prices of ether have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of ether, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of ether and the Shares may include an increase in the global ether supply or a decrease in global ether demand; market conditions of, and overall sentiment towards, the crypto assets and blockchain technology industry; trading activity on crypto asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of ether as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the Ethereum network, and their ability to meet user demands; manipulative trading activity on crypto asset exchanges, which, in many cases, are largely unregulated; and forks in the Ethereum network, among other things. Coinbase Custody Trust Company, LLC serves as the Trust’s custodian for ether for which qualified custody is available (the “Ether Custodian”). The Ether Custodian is subject to change in the sole discretion of the Sponsor. At September 30, 2024, ether with a market value of $ 259,850,853 was held by the Ether Custodian. No comparative period presented as the Trust commenced operations on July 22, 2024.

Financial Highlights

Financial Highlights	9 Months Ended
	Sep. 30, 2024
Investment Company, Financial Highlights [Abstract]
Financial Highlights	7. Financial Highlights* Per-share Performance (for a Share outstanding throughout the period presented) For the period July 22, 2024 (commencement of operations) through September 30, 2024* Net asset value per-share, beginning of period $ 25.00 Net investment loss 1 — Net realized unrealized gain (loss) 2 ( 6.39 ) Net change in net assets from operations ( 6.39 ) Net asset value per-share, end of period $ 18.61 Total return, at net asset value 2 ( 25.56 ) % Ratios to average net assets 3 Net investment loss — % Gross expenses 0.20 % Net expenses — % * No comparative financial statements have been presented as the Trust's operations commenced on July 22, 2024. 1. Calculated using average Shares outstanding. 2. Total returns are calculated based on the change in value during the reporting period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of share transactions from the Trust. 3. Annualized.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements	8. 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 with no material impact on its financial statements and disclosures as the Trust uses fair value as its method of accounting for Ethereum in accordance with its classification as an investment company for accounting purposes.

Indemnifications

Indemnifications	9 Months Ended
	Sep. 30, 2024
Indemnifications [Absract]
Indemnifications	9. Indemnifications In the normal course of business, the Trust enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The Trust expects the risk of any future obligation under these indemnifications to be remote.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events In preparing these financial statements, the Sponsor has evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued. Management has determined that there were no additional material events that would require disclosure other than that which has already been discussed in these Notes to Financial Statements.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies.
Use of Estimates	Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results could differ from those estimates.
Cash	Cash Generally, the Trust does not intend to hold any cash. Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.
Investment Transactions and Revenue Recognition	Investment Transactions and Revenue Recognition 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 investment in ether. 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 Fee in ether.
Investment Valuation - Principal Market NAV	Investment Valuation - Principal Market NAV U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value investments held at fair value. For financial statement reporting, the Trust identifies and determines the ether principal market (or in the absence of a principal market, the most advantageous market) for U.S. GAAP purposes consistent with the application of the fair value measurement framework in FASB ASC Topic 820. A principal market is the market with the greatest volume and activity level for the asset or liability. The Principal Market NAV and the Principal Market NAV per-share are calculated using the fair value of ether based on the price provided by this exchange market, as of 4:00 p.m. ET on the measurement date for U.S. GAAP purposes. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its principal market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 p.m. ET for ether. The Sponsor then identifies that market as the principal market for ether during that period, and uses the price for ether from that venue at 4:00 ET as the principal market price. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. The Principal Market and the Principal Market Price for ether, which comprised the majority of the Trust’s assets for the period from July 22, 2024 to September 30, 2024, was Crypto.com with a price of $ 2,594.54 as of September 30, 2024. Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Unobservable inputs, including the Trust's assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date. The cost basis of the investment in ether recorded by the Trust for financial reporting purposes is the fair value of ether at the time of transfer. 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. Given that ether is actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. The following summarizes the Trust’s assets accounted for at fair value at September 30, 2024* (amounts in thousands): Level 1 Level 2 Level 3 Total Assets Investment in ether, at fair value $ 259,851 $ — $ — $ 259,851 * No comparative period presented as the Trust commenced operations on July 22, 2024 . Calculation of Net Asset Value (NAV) and NAV per-share On each business day, as soon as practicable after 4:00 p.m. ET, the NAV of the Trust is obtained by subtracting all accrued fees and other liabilities of the Trust from the fair value of the ether and other assets held by the Trust. The Bank of New York Mellon (the “Administrator”) computes the NAV per-share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.
Income Taxes	Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself is not subject to U.S. federal income tax. Instead, the Trust’s income and expenses “flow through” to the shareholders, and the Administrator reports the Trust’s income, gains, losses, and deductions to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust, and does not believe that there are any uncertain tax positions that require recognition of a tax liability as of September 30, 2024. The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of September 30, 2024 and December 31, 2023, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates in; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of September 30, 2024, all tax years since inception remain open for examination. There were no examinations in progress at period end.
Organizational and offering costs	Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares are borne directly by the Sponsor. The Trust is not obligated to reimburse the Sponsor.
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 with no material impact on its financial statements and disclosures as the Trust uses fair value as its method of accounting for Ethereum in accordance with its classification as an investment company for accounting purposes.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Trust's Assets Accounted at Fair Value	The following summarizes the Trust’s assets accounted for at fair value at September 30, 2024* (amounts in thousands): Level 1 Level 2 Level 3 Total Assets Investment in ether, at fair value $ 259,851 $ — $ — $ 259,851 * No comparative period presented as the Trust commenced operations on July 22, 2024

Fair Value of Ether (Tables)

Fair Value of Ether (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Changes in Quantity of Ether and Fair Value	The following represents the changes in quantity of ether and the respective fair value for the period from July 22, 2024 (commencement of operations) to September 30, 2024*: Quantity of ether Fair Value Beginning balance as of July 22, 2024 (commencement of operations) 0.0000 $ 0 Purchases 101,085.6138 331,371 Sales for the redemption of Shares ( 932.6567 ) ( 2,133 ) ether transferred for Sponsor Fee — — Net realized gain (loss) on investment in ether transferred to pay Sponsor Fee — — Net realized gain (loss) on investment in ether sold for redemptions — ( 1,116 ) Change in unrealized appreciation (depreciation) on investment in ether — ( 68,271 ) Ending balance as of September 30, 2024* 100,152.9571 $ 259,851 * No comparative period presented as the Trust commenced operations on July 22, 2024.

Financial Highlights (Tables)

Financial Highlights (Tables)	9 Months Ended
	Sep. 30, 2024
Investment Company, Financial Highlights [Abstract]
Summary of Per Share Performance	Per-share Performance (for a Share outstanding throughout the period presented) For the period July 22, 2024 (commencement of operations) through September 30, 2024* Net asset value per-share, beginning of period $ 25.00 Net investment loss 1 — Net realized unrealized gain (loss) 2 ( 6.39 ) Net change in net assets from operations ( 6.39 ) Net asset value per-share, end of period $ 18.61 Total return, at net asset value 2 ( 25.56 ) % Ratios to average net assets 3 Net investment loss — % Gross expenses 0.20 % Net expenses — % * No comparative financial statements have been presented as the Trust's operations commenced on July 22, 2024. 1. Calculated using average Shares outstanding. 2. Total returns are calculated based on the change in value during the reporting period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of share transactions from the Trust. 3. Annualized.

Organization - Additional Infor

Organization - Additional Information (Details)					9 Months Ended
	Jul. 31, 2024 USD ($) shares	Jul. 23, 2024 shares	Jul. 22, 2024 USD ($) $ / shares shares	May 28, 2024 USD ($) $ / shares shares	Sep. 30, 2024 USD ($) Trustee shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Minimum number of trustee should available in trust | Trustee					1
Maximum sponsor fee for legal fees and expenses | $					$ 500,000
Number of shares in cash-settled transactions in blocks at trust					10,000
BAM
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares purchased				8
Purchase price per share | $ / shares				$ 25
Shares redeemed	8		8
Shares redeemed, value | $	$ 200		$ 200
Purchase of shares, value | $				$ 200
BIM
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares purchased			100,000
Purchase price per share | $ / shares			$ 25
Number of initial shares of the trust			100,000
Purchase of shares, value | $			$ 2,500,000
Shares sold for cash		100,000

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Market value per share	$ 2,594.54
Provision for income taxes	$ 0	$ 0
Unrecognized tax benefits	$ 0	$ 0

Significant Accounting Polici_5

Significant Accounting Policies - Summary of Trust's Assets Accounted at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2024		Jul. 21, 2024
Assets
Investment in ether, at fair value	$ 259,851	[1]	$ 0
Level 1
Assets
Investment in ether, at fair value	259,851
Level 2
Assets
Investment in ether, at fair value	0
Level 3
Assets
Investment in ether, at fair value	$ 0
[1] No comparative period presented as the Trust commenced operations on July 22, 2024.

Fair Value of Ether - Additiona

Fair Value of Ether - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 USD ($) Ether $ / shares		Jul. 21, 2024 USD ($) Ether
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Trust held net closing balance of ether | Ether	100,152.9571		0
Investment in ether, at fair value	$ 259,851,000	[1]	$ 0
CME CF Ether
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investment in ether, at fair value	$ 259,503,322
Ether index price per share | $ / shares	$ 2,591.07
Lukka Prime Rate
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investment in ether, at fair value	$ 259,850,853
Ether index price per share | $ / shares	$ 2,594.54
[1] No comparative period presented as the Trust commenced operations on July 22, 2024.

Fair Value of Ether - Schedule

Fair Value of Ether - Schedule of Changes in Quantity of Ether and Fair Value (Details) $ in Thousands	2 Months Ended
	Sep. 30, 2024 USD ($) Ether
Fair Value Disclosures [Abstract]
Beginning balance as of July 22, 2024 (commencement of operations) | Ether	0
Purchases | Ether	101,085.6138
Sales for the redemption of Shares | Ether	(932.6567)
Ending balance as of September 30, 2024 | Ether	100,152.9571
Beginning balance as of July 22, 2024 (commencement of operations)	$ 0
Purchases	331,371
Sales for the redemption of Shares	(2,133)
Net realized gain (loss) on investment in ether sold for redemptions	(1,116)	[1]
Change in unrealized appreciation (depreciation) on investment in ether	(68,271)	[1],[2]
Ending balance as of September 30, 2024	$ 259,851	[3]
[1] No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024 No comparative period presented as the Trust commenced operations on July 22, 2024.

Related Party Transactions an_2

Related Party Transactions and Agreements - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 USD ($) shares
Related Party Transaction [Line Items]
Sponsor fee percentage	0.20%
Trust assets	$ 500,000,000
Commenced period	6 months
Commenced date	Jul. 23, 2024
Maximum sponsor fee for legal fees and expenses	$ 500,000
Sponsor owned number of shares | shares	0

Creation and Redemption of Sh_2

Creation and Redemption of Shares - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 shares
Equity [Abstract]
Number of shares in block issued	10,000

Concentration of Risk - Additio

Concentration of Risk - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 USD ($)
Coinbase Custody Trust Company, LLC
Concentration Risk [Line Items]
Fair value of bitcoins acquired	$ 259,850,853

Financial Highlights - Summary

Financial Highlights - Summary of Per Share Performance (Details)	2 Months Ended
	Sep. 30, 2024 $ / shares
Investment Company, Financial Highlights [Abstract]
Net asset value per Share, beginning of period	$ 25
Investment Company, Investment Income (Loss) from Operations, Per Share [Abstract]
Net investment loss	0
Net realized unrealized gain (loss)	(6.39)
Net change in net assets from operations	(6.39)
Net asset value per Share, end of period	$ 18.61	[1]
Total return, at net asset value	(25.56%)
Ratios to average net assets:
Net investment loss	0%
Gross expenses	0.20%
Net expenses	0%
[1] Net asset value per share calculated using the principal market valuation as of the date of the financial statements.