21Shares Core Ethereum ETF Assets Surge to $23M Amidst Ether Inflows

TL;DR

**TETH is seeing massive inflows, but watch out for that NAV per share drop – it's a volatile ride!**

AI Summary

The 21Shares Core Ethereum ETF (TETH) reported a significant increase in total assets to $23,004,189 as of June 30, 2025, up from $16,869,879 on December 31, 2024, driven by substantial contributions for shares issued totaling $15,212,030 for the six months ended June 30, 2025. The Trust's investment in ether, at fair value, grew from $16,869,879 (5,050.0000 ether) to $23,004,189 (9,142.2874 ether) during the same period. Despite a net investment loss of $15,490 for the six months ended June 30, 2025, primarily due to sponsor fees, the Trust experienced a net change in unrealized appreciation on investment in ether of $88,594. However, net assets resulting from operations saw a decrease of $3,403,318 for the six months, largely due to a net realized loss of $3,476,102 on ether sold for redemptions. The number of shares outstanding increased from 1,010,000 to 1,830,000, though the net asset value per share decreased from $16.70 to $12.57.

Why It Matters

This 10-Q highlights significant growth in the 21Shares Core Ethereum ETF's assets, indicating strong investor interest in regulated Ethereum exposure. For investors, the increase in shares issued and total assets suggests growing adoption, but the declining NAV per share from $16.70 to $12.57 warrants close attention, reflecting market volatility and realized losses from redemptions. Employees of 21Shares US LLC benefit from the expansion, while customers gain more liquidity and accessibility to Ethereum. In the competitive landscape of crypto ETFs, TETH's asset growth positions it as a notable player, but its performance is directly tied to ether's price movements and operational efficiency.

Risk Assessment

Risk Level: high — The risk level is high due to the inherent volatility of digital assets like ether, as evidenced by the net asset value per share decreasing from $16.70 to $12.57 between December 31, 2024, and June 30, 2025. Furthermore, the Trust incurred a significant net realized loss of $3,476,102 on investment in ether sold for redemptions for the six months ended June 30, 2025, indicating exposure to market price fluctuations during periods of outflows.

Analyst Insight

Investors should carefully evaluate their risk tolerance for digital assets before investing in TETH, given the significant volatility and realized losses observed. Monitor ether price movements closely and consider the impact of potential future redemptions on the Trust's NAV per share.

Financial Highlights

debt To Equity

0.00

revenue

$0

operating Margin

N/A

total Assets

$23,004,189

total Debt

$0

net Income

$ (3,403,318)

eps

$ (1.86)

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $23,004,189 — Total Assets (Increased from $16,869,879 on December 31, 2024, reflecting growth in ether holdings.)
• $15,212,030 — Contributions for Shares Issued (For the six months ended June 30, 2025, indicating strong investor demand.)
• $12.57 — Net Asset Value per Share (Decreased from $16.70 on December 31, 2024, despite asset growth.)
• 1,830,000 — Shares Issued and Outstanding (Increased from 1,010,000 on December 31, 2024, showing significant share creation.)
• $3,476,102 — Net Realized Loss on Ether Sold for Redemptions (For the six months ended June 30, 2025, impacting net assets from operations.)
• $3,403,318 — Net Decrease in Net Assets from Operations (For the six months ended June 30, 2025, primarily due to realized losses on redemptions.)
• 9,142.2874 — Quantity of Ether Held (Increased from 5,050.0000 ether on December 31, 2024.)
• $15,490 — Net Investment Loss (For the six months ended June 30, 2025, primarily due to sponsor fees.)
• $88,594 — Net Change in Unrealized Appreciation on Ether (For the six months ended June 30, 2025, indicating some positive market movement.)
• $1,635 — Sponsor Fee Payable (As of June 30, 2025, reflecting accrued expenses.)

Key Players & Entities

• 21Shares Core Ethereum ETF (company) — Registrant and exchange-traded fund
• 21Shares US LLC (company) — Sponsor of the Trust
• Coinbase Custody Trust Company, LLC (company) — Custodian for the Trust's ether
• BitGo New York Trust Company, LLC (company) — Custodian for the Trust's ether
• Anchorage Digital Bank N.A (company) — Custodian for the Trust's ether
• Bank of New York Mellon (company) — Transfer Agent, Administrator, and Cash Custodian
• Cboe BZX Exchange, Inc. (company) — Exchange where Shares are traded
• CF Benchmarks Ltd. (company) — Administrator for the CME CF Ether-Dollar Reference Rate – New York Variant Index
• Jura Pentium Inc. (company) — Parent company of 21Shares US LLC
• 21co Holdings Limited (company) — Ultimate parent company of 21Shares US LLC

FAQ

Risk Factors

• Volatility of Ether Prices [high — market]: The Trust's investment is primarily in ether, a digital asset whose price is highly volatile and subject to rapid and substantial fluctuations. The fair value of ether decreased by $3,476,102 due to redemptions and experienced a net change in unrealized appreciation of $88,594 for the six months ended June 30, 2025. This volatility poses a significant risk to the Trust's net asset value.
• Evolving Regulatory Landscape [medium — regulatory]: The regulatory framework for digital assets, including ether, is still developing and subject to change. Changes in regulations could impact the Trust's ability to operate, the value of ether, or the demand for the Trust's shares. The Trust's operations are subject to various U.S. federal and state laws and regulations.
• Reliance on Third-Party Custodians [high — operational]: The Trust relies on third-party custodians to hold its ether. The loss or compromise of these assets due to operational failures, cyber-attacks, or insolvency of a custodian could result in a significant loss for the Trust. The Trust's investment in ether is held by a custodian, and its failure could impact the Trust.
• Redemption Activity Impact [medium — financial]: Significant redemptions can lead to the Trust selling ether, potentially at unfavorable prices, resulting in realized losses. For the six months ended June 30, 2025, the Trust incurred a net realized loss of $3,476,102 on ether sold for redemptions, which directly reduced net assets.
• Limited Operating History [low — market]: The Trust commenced operations on May 1, 2024, and has a limited operating history. This lack of long-term performance data makes it difficult to assess its future performance and stability, especially during different market cycles. The comparative data provided only covers periods from May 1, 2024.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing investor interest in gaining exposure to cryptocurrencies like Ethereum. Competition is growing as more issuers launch similar products. Regulatory scrutiny remains a key factor influencing the development and acceptance of these investment vehicles.

Regulatory Implications

The evolving regulatory landscape for digital assets presents ongoing risks. Changes in how ether is classified or regulated could impact the Trust's operations, the value of its holdings, and investor confidence. Compliance with existing and future regulations is critical for the Trust's continued operation.

What Investors Should Do

1. Monitor Ether Price Volatility
2. Assess Impact of Redemptions
3. Understand Sponsor Fees
4. Stay Informed on Regulatory Developments

Key Dates

• 2025-06-30: Reporting period end for 10-Q — Reflects the Trust's financial position and performance, showing total assets of $23,004,189 and a net asset value per share of $12.57.
• 2025-01-01: Beginning of the six-month reporting period — The Trust's assets were $16,869,879, with 5,050.0000 ether held, and NAV per share was $16.70.
• 2024-05-01: Trust commenced operations (initial seed creation date) — Marks the beginning of the Trust's investment activities and reporting history.

Glossary

Ether

A decentralized, open-source blockchain with smart contract functionality. Ether (ETH) is the native cryptocurrency of the Ethereum network. (The primary investment asset of the 21Shares Core Ethereum ETF, its fair value directly impacts the Trust's total assets and net asset value.)

Net Asset Value (NAV) per Share

The market value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (Indicates the per-share value of the Trust's holdings. A decrease from $16.70 to $12.57 per share, despite asset growth, highlights the impact of share issuance and realized losses.)

Sponsor Fee

A fee paid to the sponsor of the ETF for services rendered, typically calculated as a percentage of the Trust's assets. (Represents an expense for the Trust. The sponsor fee for TETH is 0.21% of ether holdings, contributing to the net investment loss.)

Realized Gain (Loss)

The profit or loss resulting from the sale of an asset for more or less than its purchase price. (The Trust experienced a significant net realized loss of $3,476,102 on ether sold for redemptions, which negatively impacted its net assets from operations.)

Unrealized Appreciation (Depreciation)

The increase or decrease in the value of an asset that has not yet been sold. (The Trust recorded a net change in unrealized appreciation of $88,594 on its ether holdings for the six months ended June 30, 2025, reflecting market value fluctuations.)

Paid-in Capital

The total amount of capital that shareholders have contributed to the company in exchange for stock. (Represents the capital invested by shareholders through the purchase of ETF shares. It increased significantly from $12,483,772 to $22,019,765 due to share issuances.)

Year-Over-Year Comparison

Compared to the period ending December 31, 2024, the 21Shares Core Ethereum ETF has seen a substantial increase in total assets from $16,869,879 to $23,004,189, driven by significant share issuances totaling $15,212,030. However, the net asset value per share has decreased from $16.70 to $12.57, primarily due to a large net realized loss of $3,476,102 on ether sold for redemptions during the six months ended June 30, 2025. The number of outstanding shares has also grown considerably from 1,010,000 to 1,830,000.

Key Financial Figures

• $1.235 billion — ny" upon the earliest of: (i) it having $1.235 billion or more in annual gross revenues, (ii)
• $1.0 billion — ated filer," (iii) it issuing more than $1.0 billion of non-convertible debt over a three-ye

Filing Documents

• ea0251700-10q_21shares.htm (10-Q) — 310KB
• ea025170001ex31-1_21shares.htm (EX-31.1) — 8KB
• ea025170001ex31-2_21shares.htm (EX-31.2) — 8KB
• ea025170001ex32-1_21shares.htm (EX-32.1) — 4KB
• ea025170001ex32-2_21shares.htm (EX-32.2) — 4KB
• 0001213900-25-075767.txt ( ) — 2228KB
• ceth-20250630.xsd (EX-101.SCH) — 24KB
• ceth-20250630_cal.xml (EX-101.CAL) — 13KB
• ceth-20250630_def.xml (EX-101.DEF) — 77KB
• ceth-20250630_lab.xml (EX-101.LAB) — 151KB
• ceth-20250630_pre.xml (EX-101.PRE) — 88KB
• ea0251700-10q_21shares_htm.xml (XML) — 254KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 1 Schedules of Investment at June 30, 2025 (Unaudited) and December 31, 2024 2 3 4 Notes to Unaudited Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 16

Controls and Procedures

Item 4. Controls and Procedures 16

OTHER INFORMATION

Part II. OTHER INFORMATION 17

Legal Proceedings

Item 1. Legal Proceedings 17

Risk Factors

Item 1A. Risk Factors 17

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19

Other Information

Item 5. Other Information 19

Exhibits

Item 6. Exhibits 19

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION:

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 21SHARES CORE ETHEREUM ETF June 30, 2025 (Unaudited) December 31, 2024 Assets Investment in ether, at fair value (cost $ 21,597,228 , $ 15,551,512 , respectively) $ 23,004,189 $ 16,869,879 Total assets 23,004,189 16,869,879 Liabilities Sponsor fee payable 1,635 – Total liabilities 1,635 – Commitments and contingent liabilities (Note 9) Net assets $ 23,002 ,554 $ 16,869,879 Net assets consists of Paid-in-capital $ 22,019,765 $ 12,483,772 Accumulated earnings (loss) 982,789 4,386,107 $ 23,002,554 $ 16,869,879 Shares issued and outstanding, no par value, unlimited amount authorized 1,830,000 1,010,000 Net asset value per share $ 12.57 $ 16.70 The accompanying notes are an integral part of the financial statements. 1 21SHARES CORE ETHEREUM ETF SCHEDULES OF INVESTMENT June 30, 2025 (Unaudited) Quantity of Ether Cost Fair Value % of Net Assets Investment in ether 9,142.2874 $ 21,597,228 $ 23,004,189 100 .01% Total investments 9,142.2874 $ 21,597,228 $ 23,004,189 100 .01% Liabilities in excess of other assets 1,635 (0 .01)% Net assets $ 23,002,554 100.00 % December 31, 2024 Quantity of Ether Cost Fair Value % of Net Assets Investment in ether 5,050.0000 $ 15,551,512 $ 16,869,879 100 .00% Total investments 5,050.0000 $ 15,551,512 $ 16,869,879 100 .00% Liabilities in excess of other assets - - % Net assets $ 16,869,879 100.00 % The accompanying notes are an integral part of the financial statements. 2 21SHARES CORE ETHEREUM ETF For the three months ended June 30, 2025 For the six months ended June 30, 2025 For the period May 1, 2024 (initial seed creation date) through June 30, 2024 (Unaudited) (Unaudited) (Unaudited) Expenses Sponsor fee $ 9,583 $ 17,659 $ - Total expenses 9,583 17,659 - Less waiver and reim

financial statements

financial statements. Segment Reporting The Trust operates in one segment. The segment derives its revenues from Trust investments made in accordance with the defined investment strategy of the Trust, as prescribed in the Trust's prospectus. The Chief Operating Decision Maker ("CODM") is the Sponsor. The CODM monitors the operating results of the Trust. The financial information that the CODM leverages to assess the segment's performance and to make decisions for the Trust's single segment, is consistent with the financial information that is presented within the Trust's financial statements. Segment assets are reflected on the accompanying Statements of Assets and Liabilities as Total assets and the only significant segment expense, the Sponsor fee, is included in the accompanying Statements of Operations. 3. Fair Value of Ether The following represents the changes in quantity of ether and the respective fair value for the six months ended June 30, 2025 (Unaudited): Quantity of ether Fair Value Beginning balance as of January 1, 2025 5,050.0000 $ 16,869,879 Ether purchased 7,147.4484 15,212,271 Ether sold ( 3,049.1610 ) ( 5,690,133 ) Net realized gain (loss) on investment in ether sold to pay Sponsor fee ( 6.0000 ) ( 320 ) Net realized gain (loss) on investment in ether sold for redemptions – ( 3,476,102 ) Change in unrealized appreciation on investment in ether – 88,594 Ending balance as of June 30, 2025* 9,142.2874 $ 23,004,189 * No comparative table has been provided as the Trust commenced operations on May 1, 2024. The following represents the changes in quantity of ether and the respective fair value for the three months ended June 30, 2025 and 2024 (Unaudited): Quantity of ether Fair Value Beginning balance as of April 1, 2025 4,600.5880 $ 8,407,804 Ether purchased 4,547.6994 8,143,205 Ether sold – ( 14,095 ) Net realized gain on investment in ether sold to pay Sponsor fee ( 6.0000 ) ( 1,843 ) Net

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