Grayscale Ethereum Trust Terminates Material Agreement

TL;DR

Grayscale Ethereum Trust terminated a key agreement, filing financial statements and exhibits.

AI Summary

On May 22, 2024, Grayscale Ethereum Trust (ETH) filed an 8-K report detailing the termination of a material definitive agreement. The filing also includes financial statements and exhibits related to the trust.

Why It Matters

This filing indicates a significant change in the contractual relationships or operational agreements of the Grayscale Ethereum Trust, potentially impacting its structure or future operations.

Risk Assessment

Risk Level: medium — Termination of a material definitive agreement can signal significant operational or strategic shifts for the trust, warranting closer examination.

Key Numbers

• 20240522 — Report Date (Earliest event reported in the 8-K filing.)

Key Players & Entities

• Grayscale Ethereum Trust (ETH) (company) — Registrant
• May 22, 2024 (date) — Date of earliest event reported
• 212 668-1427 (phone_number) — Registrant's Telephone Number
• Delaware (jurisdiction) — State of Incorporation
• 000-56193 (filing_id) — Commission File Number

FAQ

Key Financial Figures

• $100 million — ss that holds Ether shall be limited to $100 million (the "Cold Storage Threshold"). The Spo

Filing Documents

• ethe-20240522.htm (8-K) — 92KB
• ethe-ex10_1.htm (EX-10.1) — 346KB
• ethe-ex10_2.htm (EX-10.2) — 144KB
• ethe-ex99_1.htm (EX-99.1) — 22KB
• img165309241_0.jpg (GRAPHIC) — 94KB
• img165309241_1.jpg (GRAPHIC) — 9KB
• 0000950170-24-065895.txt ( ) — 955KB
• ethe-20240522.xsd (EX-101.SCH) — 28KB
• ethe-20240522_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. Custodian Agreement On May 22, 2024, Grayscale Ethereum Trust (ETH) (the "Trust"), Grayscale Investments, LLC, the sponsor of the Trust (the "Sponsor") and Coinbase, Inc., the prime broker of the Trust ("Coinbase" or the "Prime Broker"), on behalf of itself and as agent for Coinbase Custody Trust Company, LLC ("Coinbase Custody" or the "Custodian") and Coinbase Credit, Inc. ("Coinbase Credit" and, collectively with Coinbase and Coinbase Custody, the "Coinbase Entities"), entered into the Coinbase Prime Broker Agreement, which includes the Coinbase Custodial Services Agreement attached thereto as Exhibit A (the "CSA"), the Coinbase Settlement and Transfer Agreement attached thereto as Exhibit B (the "STA") and all other exhibits, addenda and supplements attached thereto (collectively with the CSA and STA, the "Custodian Agreement") governing the Trust's and the Sponsor's use of the custodial and prime broker services provided by the Custodian and the Prime Broker. The Custodian Agreement establishes the rights and responsibilities of the Custodian, the Prime Broker, the Sponsor and the Trust with respect to the Trust's Ether which is held in accounts maintained and operated by the Custodian, as a fiduciary with respect to the Trust's assets, and the Prime Broker (together with the Custodian, the "Custodial Entities") on behalf of the Trust. The Custodian Agreement shall not become effective until the date on which the shares of Grayscale Ethereum Trust (ETH) begin trading on NYSE Arca as shares of an exchange-traded product (the "Uplisting Date"). The foregoing description, together with the below description of certain terms of the Custodian Agreement, is a summary, does not purport to be a complete description of the Custodian Agreement, and is qualified in its entirety by reference to the Custodian Agreement, which is filed as Exhibit 10.1 hereto and is incorporated by reference herein. In addition, th

02. Termination of a Material Definitive Agreement

Item 1.02. Termination of a Material Definitive Agreement. Previous Custodian Agreement In connection with the entry into the Custodian Agreement, the Sponsor and the Custodian agreed to terminate, as of the Uplisting Date, the Amended and Restated Custodian Agreement, dated June 29, 2022, be

View Full Filing

View this 8-K filing on SEC EDGAR