Grayscale ETH Mini Trust Surges 90% in Net Assets, Adds New Custodian

TL;DR

**ETH is crushing it, with net assets nearly doubling and a new custodian boosting confidence – buy the dip if you can find one.**

AI Summary

Grayscale Ethereum Mini Trust ETF (ETH) reported a significant increase in net assets, reaching $3,001,975 thousand as of September 30, 2025, up from $1,572,914 thousand at December 31, 2024, representing a 90.8% increase. This growth was primarily driven by a net increase in net assets resulting from operations of $543,202 thousand for the nine months ended September 30, 2025, and a net increase from capital share transactions of $885,859 thousand. The Trust's investment in Ether, at fair value, rose from $1,572,914 thousand to $3,001,975 thousand during the same period. The Principal Market NAV per Share increased from $31.48 to $39.17. The Trust experienced a net investment loss of $1,721 thousand for the nine months ended September 30, 2025, primarily due to Sponsor's Fees. However, this was offset by a substantial net change in unrealized appreciation on investment in Ether of $519,613 thousand and a net realized gain on investment in Ether sold for redemption of Shares of $25,468 thousand. The number of Shares outstanding grew from 49,970,788 to 76,630,788. Key business changes include the addition of Anchorage Digital Bank N.A. as a custodian on August 8, 2025, diversifying custody arrangements beyond Coinbase Entities.

Why It Matters

This significant growth in net assets and NAV per share for the Grayscale Ethereum Mini Trust ETF signals strong investor interest and positive market sentiment for Ethereum-backed products. For investors, the 90.8% increase in net assets and the rise in NAV per share from $31.48 to $39.17 indicate robust performance, potentially attracting more capital into the crypto ETF space. The addition of Anchorage Digital as a custodian enhances operational resilience and reduces single-point-of-failure risk, a critical factor for institutional investors. This competitive move could pressure other crypto ETF providers to diversify their own custody solutions, benefiting the broader market by improving security standards and potentially increasing mainstream adoption of digital asset investment vehicles.

Risk Assessment

Risk Level: medium — While the Trust shows strong growth, its entire asset base is concentrated in Ether, making it highly susceptible to cryptocurrency market volatility. The net change in unrealized appreciation on investment in Ether was a substantial $519,613 thousand for the nine months ended September 30, 2025, highlighting the significant impact of Ether's price fluctuations on the Trust's net assets. Furthermore, the Trust incurred a net investment loss of $1,721 thousand due to Sponsor's Fees, indicating ongoing operational costs that could erode returns if Ether's value declines.

Analyst Insight

Investors should consider ETH as a high-growth, high-volatility play on Ethereum's price movements, suitable for those with a strong conviction in the long-term appreciation of Ether. Given the substantial unrealized gains, investors should monitor Ether's price trends closely and be prepared for potential pullbacks. Diversifying custody with Anchorage Digital is a positive, but the core risk remains Ether price exposure.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$3,001,975 thousand

total Debt

$0

net Income

$543,202 thousand

eps

N/A

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $3,001,975 thousand — Net assets (Increased from $1,572,914 thousand at December 31, 2024, a 90.8% increase.)
• $543,202 thousand — Net increase in net assets from operations (For the nine months ended September 30, 2025, indicating strong operational performance.)
• $885,859 thousand — Net increase in net assets from capital share transactions (For the nine months ended September 30, 2025, reflecting significant investor inflows.)
• $39.17 — Principal Market NAV per Share (Increased from $31.48 at December 31, 2024, showing per-share value growth.)
• 76,630,788 — Shares issued and outstanding (Increased from 49,970,788 at December 31, 2024, indicating higher investor participation.)
• $519,613 thousand — Net change in unrealized appreciation on investment in Ether (For the nine months ended September 30, 2025, a major driver of net asset growth.)
• $1,721 thousand — Net investment loss (For the nine months ended September 30, 2025, primarily due to Sponsor's Fees.)
• 721,349.34169850 — Quantity of Ether held (As of September 30, 2025, up from 470,875.75775088 at December 31, 2024.)
• August 8, 2025 — Date of Anchorage Digital Custodian Agreement (Signifies diversification of custody services.)
• $1,010.9 million — Initial Distribution of Ether (From Grayscale Ethereum Trust ETF on July 23, 2024, significantly boosting initial assets.)

Key Players & Entities

• Grayscale Ethereum Mini Trust ETF (company) — Registrant and subject of the 10-Q filing
• Grayscale Investments Sponsors, LLC (company) — Sole remaining sponsor of the Trust
• Coinbase, Inc. (company) — Prime broker of the Trust
• Coinbase Custody Trust Company, LLC (company) — Custodian for the Trust's Ether holdings
• Anchorage Digital Bank N.A. (company) — New custodian for the Trust's Ether holdings as of August 8, 2025
• The Bank of New York Mellon (company) — Transfer Agent and Administrator for the Trust
• Digital Currency Group, Inc. (company) — Parent company of the Sponsor
• NYSE Arca, Inc. (regulator) — Exchange where ETH shares are listed
• Securities and Exchange Commission (regulator) — Regulatory body overseeing the Trust's filings
• Grayscale Investments, LLC (company) — Former sponsor and initial seed investor

FAQ

Risk Factors

• Volatility of Ether Price [high — market]: The Trust's net assets are primarily composed of Ether. The fair value of Ether can be highly volatile, as demonstrated by the net change in unrealized appreciation of $519,613 thousand for the nine months ended September 30, 2025, and a net change in unrealized depreciation of $286,213 thousand for the period from July 23, 2024, to September 30, 2024. Significant price drops in Ether could materially and adversely affect the value of the Trust's Shares.
• Custody and Security Risks [high — operational]: The Trust relies on custodians to hold its Ether. While the addition of Anchorage Digital Bank N.A. on August 8, 2025, diversifies custody, any failure or security breach at a custodian could result in the loss of Trust assets. The Trust's investment in Ether was $3,001,975 thousand as of September 30, 2025.
• Evolving Regulatory Landscape [medium — regulatory]: The regulatory environment for digital assets, including Ether, is evolving. Changes in regulations could impact the Trust's ability to operate, hold Ether, or could affect the value of Ether itself. The Trust's operations are subject to various U.S. and international laws and regulations.
• Sponsor's Fees Impact [medium — financial]: The Trust incurred a net investment loss of $1,721 thousand for the nine months ended September 30, 2025, primarily due to Sponsor's Fees. While these fees are a necessary cost of operations, they directly reduce the Trust's net assets and can impact overall returns.
• Redemption and Creation Mechanism [medium — market]: The Trust's ability to redeem Shares is dependent on the creation of Ether for redemption. A net realized gain on investment in Ether sold for redemption of Shares was $25,468 thousand for the nine months ended September 30, 2025. Disruptions in this process could affect liquidity and NAV.

Industry Context

The digital asset investment trust landscape is rapidly evolving, with increasing institutional interest in cryptocurrencies like Ether. Competitors are also launching similar products, necessitating strong performance and efficient operations. The industry faces ongoing scrutiny regarding regulatory clarity and investor protection, impacting product development and market acceptance.

Regulatory Implications

The Trust operates within a dynamic regulatory environment for digital assets. Evolving regulations in the U.S. and globally could impact the classification, custody, and trading of Ether, potentially affecting the Trust's operations and the value of its holdings. Compliance with existing and future regulations is a critical operational aspect.

What Investors Should Do

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Key Dates

• 2025-09-30: Reporting Period End — Net assets reached $3,001,975 thousand, with 76,630,788 shares outstanding.
• 2025-08-08: Anchorage Digital Bank N.A. Added as Custodian — Diversifies custody arrangements, potentially enhancing security and operational resilience.
• 2025-01-01: Start of Nine-Month Period — Beginning of the period showing significant growth in net assets from operations and capital share transactions.
• 2024-12-31: Prior Period End — Net assets were $1,572,914 thousand, with 49,970,788 shares outstanding.
• 2024-07-23: Commencement of Trust's Operations — Marks the beginning of the Trust's investment activities and reporting history.

Glossary

Net assets

The total value of a company's assets minus its liabilities. For a trust, it represents the value attributable to shareholders. (Key measure of the Trust's size and value, which grew by 90.8% to $3,001,975 thousand.)

Principal Market NAV per Share

The Net Asset Value (NAV) per share calculated based on the primary market where the Trust's shares are traded. (Indicates the per-share value of the Trust's holdings, which increased from $31.48 to $39.17.)

Investment in Ether, at fair value

The current market value of the Ether held by the Trust. (Represents 100% of the Trust's assets, valued at $3,001,975 thousand as of September 30, 2025.)

Net realized and unrealized gain (loss) on investment

The total profit or loss from the sale of assets (realized) and the change in value of assets still held (unrealized). (For the nine months ended Sept 30, 2025, this was a gain of $544,923 thousand, driven by unrealized appreciation.)

Sponsor's Fee

Fees paid to the entity that sponsors and manages the Trust. (A primary expense for the Trust, contributing to a net investment loss of $1,721 thousand for the nine months ended Sept 30, 2025.)

Shares issued and outstanding

The total number of shares of the Trust that have been issued to investors and are currently held by them. (Increased from 49,970,788 to 76,630,788, reflecting significant investor demand.)

Year-Over-Year Comparison

Compared to December 31, 2024, the Grayscale Ethereum Mini Trust ETF has experienced substantial growth. Net assets surged by 90.8% to $3,001,975 thousand, driven by a $885,859 thousand increase from capital share transactions and $543,202 thousand from operations. The number of shares outstanding grew significantly from 49,970,788 to 76,630,788, and the Principal Market NAV per Share increased from $31.48 to $39.17. While a net investment loss of $1,721 thousand was recorded due to Sponsor's Fees, this was more than offset by a $519,613 thousand net change in unrealized appreciation on Ether.

Filing Documents

• eth-20250930.htm (10-Q) — 1458KB
• eth-ex31_1.htm (EX-31.1) — 25KB
• eth-ex31_2.htm (EX-31.2) — 25KB
• eth-ex32_1.htm (EX-32.1) — 8KB
• eth-ex32_2.htm (EX-32.2) — 9KB
• img202272859_0.jpg (GRAPHIC) — 723KB
• img202272859_1.jpg (GRAPHIC) — 599KB
• img202272859_2.jpg (GRAPHIC) — 509KB
• 0001193125-25-266931.txt ( ) — 9619KB
• eth-20250930.xsd (EX-101.SCH) — 582KB
• eth-20250930_htm.xml (XML) — 925KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Statements of Assets and Liabilities at September 30, 2025 and December 31, 2024 4 Schedules of Investment at September 30, 2025 and December 31, 2024 5 Statements of Operations for the Three and Nine Months Ended September 30, 2025 and the Period from July 23, 2024 (the Commencement of the Trust's Operations) to September 30, 2024 6 Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2025 and the Period from May 31, 2024 (Date of Seeding) to September 30, 2024 7 Statements of Cash Flows for the Nine Months Ended September 30, 2025 and the Period from May 31, 2024 (Date of Seeding) to September 30, 2024 8 Notes to the Unaudited Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 30 Item 6. Exhibits 31 GLOSSARY OF DEFINED TERMS 32

SIGNATURES

SIGNATURES 38 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Ethereum Mini Trust ETF (the "Trust"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust's operations, the plans of Grayscale Operating, LLC ("GSO"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025, and Grayscale Investments Sponsors, LLC ("GSIS"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025 and the sole remaining sponsor thereafter (each of GSO and GSIS, the "Sponsor," as the context may require, and GSO and GSIS, together, the "Co-Sponsors"), and references to the Trust's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I, Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION: Item1. Financial Statements (Unaudited) GRAYSCALE ETHEREUM MINI TRUST ETF STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (Amounts in thousands, except Share and per Share amounts) September 30, 2025 December 31, 2024 Assets: Investment in Ether, at fair value (cost $ 2,499,861 and $ 1,590,413 as of September 30, 2025 and December 31, 2024, respectively) $ 3,001,975 $ 1,572,914 Total assets $ 3,001,975 $ 1,572,914 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 3,001,975 $ 1,572,914 Shares issued and outstanding, no par value ( unlimited Shares authorized) 76,630,788 49,970,788 Principal Market NAV per Share $ 39.17 $ 31.48 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE ETHEREUM MINI TRUST ETF SCHE DULES OF INVESTMENT (UNAUDITED) (Amounts in thousands, except quantity of Ether and percentages) September 30, 2025 Quantity of Ether Cost Fair Value % of Net Assets Investment in Ether 721,349.34169850 $ 2,499,861 $ 3,001,975 100 % Total Investment $ 2,499,861 $ 3,001,975 100 % Net assets $ 3,001,975 100 % December 31, 2024 Quantity of Ether Cost Fair Value % of Net Assets Investment in Ether 470,875.75775088 $ 1,590,413 $ 1,572,914 100 % Total Investment $ 1,590,413 $ 1,572,914 100 % Net assets $ 1,572,914 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE ETHEREUM MINI TRUST ETF STATEMEN TS OF OPERATIONS (UNAUDITED) (Amounts in thousands) Three Months Ended September 30, 2025 For the Period from July 23, 2024 (the Commencement of the Trust's Operations) to September 30, 2024 Nine Months Ended September 30, 2025 For the Period from July 23, 2024 (the Commencement of the Trust's Operations) to September 30, 2024 Investment income: In