21Shares Ethereum ETF Net Assets Soar to $45.9M on Strong Inflows

TL;DR

**TETH is crushing it, with net assets nearly tripling, signaling strong investor appetite for regulated Ethereum exposure.**

AI Summary

21Shares Ethereum ETF (TETH) reported a significant increase in net assets, reaching $45,914,704 as of September 30, 2025, up from $16,869,879 on December 31, 2024. This growth was driven by substantial contributions for shares issued, totaling $68,872,453 for the nine months ended September 30, 2025. The Trust also experienced a net increase in net assets from operations of $13,553,224 for the nine months ended September 30, 2025, a stark contrast to a net decrease of $3,222,047 for the period from May 1, 2024, to September 30, 2024. Key drivers included a net realized gain of $9,126,375 on ether sold for redemptions and a net change in unrealized appreciation of $4,464,507 on investment in ether for the nine-month period. The number of shares outstanding increased to 2,210,000 as of September 30, 2025, from 1,010,000 at year-end 2024, with the Net Asset Value per share rising to $20.78 from $16.70. The Trust continues to operate as an 'emerging growth company,' allowing it to comply with reduced public company reporting requirements.

Why It Matters

This robust growth in net assets and NAV per share for TETH signals strong investor confidence and increasing demand for regulated Ethereum exposure, positioning 21Shares US LLC favorably in the competitive digital asset ETF market. For investors, the significant appreciation in ether's fair value and realized gains indicate a healthy underlying asset performance, potentially attracting more capital. Employees of 21Shares US LLC benefit from the company's expanding AUM and market presence. The broader market sees this as further validation of digital asset ETFs, potentially spurring more product launches and competition from firms like Grayscale or BlackRock.

Risk Assessment

Risk Level: medium — The Trust's entire asset base is concentrated in ether, making it highly susceptible to the volatile price movements of this single digital asset. While the net change in unrealized appreciation was positive at $4,464,507 for the nine months ended September 30, 2025, the prior year's period saw a net change in unrealized depreciation of $3,222,047, demonstrating significant price fluctuation risk. Furthermore, as an 'emerging growth company,' the Trust benefits from reduced reporting requirements, which could mean less transparency compared to larger, more established funds.

Analyst Insight

Investors should consider TETH for diversified exposure to Ethereum, acknowledging its inherent volatility. Given the substantial increase in net assets and NAV per share, TETH demonstrates strong market acceptance. However, investors should monitor ether price trends closely and be aware of the 'emerging growth company' status, which may entail less comprehensive financial disclosures compared to fully mature public companies.

Financial Highlights

debt To Equity

0.00

revenue

$0

operating Margin

N/A

total Assets

$45,916,365

total Debt

$0

net Income

$13,553,224

eps

$20.78

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $45,914,704 — Net Assets (Increased from $16,869,879 on December 31, 2024, representing a 172% increase.)
• $20.78 — Net Asset Value per Share (Increased from $16.70 on December 31, 2024.)
• 2,210,000 — Shares Outstanding (Increased from 1,010,000 on December 31, 2024.)
• $68,872,453 — Contributions for Shares Issued (For the nine months ended September 30, 2025.)
• $13,553,224 — Net Increase in Net Assets from Operations (For the nine months ended September 30, 2025, compared to a decrease of $3,222,047 in the prior year period.)
• $9,126,375 — Net Realized Gain on Ether Sold for Redemptions (For the nine months ended September 30, 2025.)
• $4,464,507 — Net Change in Unrealized Appreciation on Investment in Ether (For the nine months ended September 30, 2025.)
• 11,034.4578 — Quantity of Ether Held (As of September 30, 2025, up from 5,050.0000 on December 31, 2024.)
• $45,916,365 — Fair Value of Investment in Ether (As of September 30, 2025, with a cost of $40,133,491.)
• $40,420 — Sponsor Fee (Total sponsor fee incurred for the nine months ended September 30, 2025.)

Key Players & Entities

• 21Shares Ethereum ETF (company) — Registrant and exchange-traded fund
• 21Shares US LLC (company) — Sponsor of the Trust
• Cboe BZX Exchange, Inc. (company) — Exchange where TETH shares are traded
• 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
• Jura Pentium Inc. (company) — Parent company of the Sponsor
• 21co Holdings Limited (company) — Ultimate parent company of the Sponsor
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Volatility of Ether Prices [high — market]: The Trust's net assets are primarily composed of investments in ether. The fair value of ether can be highly volatile and subject to rapid and significant price movements. For the nine months ended September 30, 2025, the net change in unrealized appreciation on investment in ether was $4,464,507, indicating significant price fluctuations. A substantial decrease in ether prices could materially and adversely affect the value of the Trust's shares.
• Evolving Regulatory Landscape for Digital Assets [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 or the value of its ether holdings. The Trust operates as an 'emerging growth company,' which allows for reduced reporting requirements, but this status may change.
• Custody and Security Risks [high — operational]: The Trust holds ether through a custodian. Risks associated with the custody of digital assets, such as hacking or loss of private keys, could result in the loss of the Trust's ether holdings. While not explicitly detailed in this 10-Q, this is an inherent risk for digital asset funds.
• Concentration Risk in Ether [high — financial]: The Trust's investment strategy is concentrated solely in ether, with 100% of its net assets invested in ether as of September 30, 2025. This concentration means that the Trust's performance is entirely dependent on the price performance of ether, amplifying the impact of any adverse movements in its price.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing institutional interest in cryptocurrencies like Ethereum. Competitors offer similar products, necessitating strong performance and efficient management. The industry faces ongoing scrutiny regarding regulatory clarity and investor protection, influencing product development and operational strategies.

Regulatory Implications

The developing regulatory landscape for digital assets presents a key challenge. Any new regulations or changes in interpretation could impact the Trust's operations, compliance costs, or the valuation of its ether holdings. As an emerging growth company, TETH benefits from reduced reporting, but this status is temporary.

What Investors Should Do

1. Monitor Ether Price Volatility: Given the 100% allocation to Ether, investors should closely track Ether's price movements and associated market risks.
2. Assess Regulatory Developments: Stay informed about evolving regulations in the digital asset space, as these could significantly impact the ETF's future.
3. Evaluate Growth Trajectory: Observe the continued growth in net assets and NAV per share, driven by both capital inflows and Ether's performance.
4. Understand Operational Costs: While sponsor fees are currently low ($40,420 for nine months), monitor any changes or increases in operational expenses.

Key Dates

• 2025-09-30: Reporting Period End — Net assets reached $45,914,704, with NAV per share at $20.78 and 2,210,000 shares outstanding.
• 2025-09-30: Nine Months Operations — Generated a net increase in net assets from operations of $13,553,224, driven by realized and unrealized gains on ether.
• 2024-12-31: Prior Year End — Net assets were $16,869,879, with NAV per share at $16.70 and 1,010,000 shares outstanding.
• 2024-05-01: Initial Seed Creation Date — Marks the beginning of the Trust's operational history for comparative reporting.

Glossary

Net Assets

The total value of an investment fund's assets minus its liabilities. For TETH, this represents the total value of its ether holdings minus any outstanding liabilities. (Indicates the overall size and value of the ETF, which grew significantly to $45,914,704 as of September 30, 2025.)

Net Asset Value (NAV) per Share

The value of one share of a mutual fund or ETF, calculated by dividing the total value of the fund's assets by the number of outstanding shares. (Shows the per-share value of the investor's stake, which increased from $16.70 to $20.78.)

Paid-in-capital

The amount of money investors have contributed to the fund in exchange for shares. (Represents the capital raised from investors, totaling $27,975,373 as of September 30, 2025.)

Accumulated earnings

The total net profit or loss of the fund since its inception, not yet distributed to shareholders. (Reflects the operational performance of the ETF, showing an increase to $17,939,331 as of September 30, 2025.)

Emerging growth company

A company that has total annual gross revenues of less than $1.235 billion (as of 2023) and is permitted to take advantage of certain regulatory and disclosure exemptions. (Allows TETH to comply with reduced public company reporting requirements.)

Realized gain/loss

The profit or loss from selling an asset for more or less than its purchase price. (The ETF realized a gain of $9,126,375 on ether sold for redemptions during the nine months ended September 30, 2025.)

Unrealized appreciation/depreciation

The increase or decrease in the value of an asset that has not yet been sold. (The ETF experienced an unrealized appreciation of $4,464,507 on its ether holdings for the nine months ended September 30, 2025.)

Sponsor fee

A fee paid to the entity that sponsors and manages the ETF. (The Trust incurred a sponsor fee of $40,420 for the nine months ended September 30, 2025.)

Year-Over-Year Comparison

The 21Shares Ethereum ETF has experienced substantial growth compared to the prior reporting period. Net assets surged by 172% from $16,869,879 to $45,914,704. The Net Asset Value per share increased from $16.70 to $20.78, and shares outstanding more than doubled from 1,010,000 to 2,210,000. Operations shifted from a net decrease in assets of $3,222,047 in the prior period to a significant net increase of $13,553,224, driven by realized and unrealized gains on ether.

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

• ea0263609-10q_21shares.htm (10-Q) — 382KB
• ea026360901ex10-3_21shares.htm (EX-10.3) — 15KB
• ea026360901ex31-1_21shares.htm (EX-31.1) — 8KB
• ea026360901ex31-2_21shares.htm (EX-31.2) — 8KB
• ea026360901ex32-1_21shares.htm (EX-32.1) — 4KB
• ea026360901ex32-2_21shares.htm (EX-32.2) — 4KB
• ex10-3_001.jpg (GRAPHIC) — 2KB
• 0001213900-25-110784.txt ( ) — 2357KB
• teth-20250930.xsd (EX-101.SCH) — 24KB
• teth-20250930_cal.xml (EX-101.CAL) — 13KB
• teth-20250930_def.xml (EX-101.DEF) — 75KB
• teth-20250930_lab.xml (EX-101.LAB) — 146KB
• teth-20250930_pre.xml (EX-101.PRE) — 88KB
• ea0263609-10q_21shares_htm.xml (XML) — 282KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION 1

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 1 Schedules of Investment at September 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 12

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 14

Controls and Procedures

Item 4. Controls and Procedures 14

OTHER INFORMATION

Part II. OTHER INFORMATION 15

Legal Proceedings

Item 1. Legal Proceedings 15

Risk Factors

Item 1A. Risk Factors 15

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 21

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 21

Other Information

Item 5. Other Information 21

Exhibits

Item 6. Exhibits 22

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION:

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 21Shares Ethereum ETF September 30, 2025 (Unaudited) December 31, 2024 Assets Investment in ether, at fair value (cost $ 40,133,491 and $ 15,551,512 , respectively) $ 45,916,365 $ 16,869,879 Total assets 45,916,365 16,869,879 Liabilities Sponsor fee payable $ 1,661 $ – Total liabilities 1,661 – Commitments and contingent liabilities (Note 9) Net assets $ 45,914,704 $ 16,869,879 Net assets consists of Paid-in-capital $ 27,975,373 $ 12,483,772 Accumulated earnings 17,939,331 4,386,107 $ 45,914,704 $ 16,869,879 Shares issued and outstanding, no par value, unlimited amount authorized 2,210,000 1,010,000 Net asset value per share $ 20.78 $ 16.70 The accompanying notes are an integral part of the financial 1 21Shares Ethereum ETF SCHEDULES OF INVESTMENT September 30, 2025 (Unaudited) Quantity of Ether Cost Fair Value % of Net Assets Investment in ether 11,034.4578 $ 40,133,491 $ 45,916,365 100.00 % Total investments 11,034.4578 $ 40,133,491 $ 45,916,365 100.00 % Liabilities in excess of other assets ( 1,661 ) – % Net assets $ 45,914,704 100.00 % 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 Ethereum ETF For the three months ended September 30, 2025 For the three months ended September 30, 2024 For the nine months ended September 30, 2025 For the period from May 1, 2024 (initial seed creation date) to September 30, 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Expenses Sponsor fee $ 22,761 $ 3,777

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 nine months ended September 30, 2025 and the period from May 1, 2024 (initial seed creation date) to September 30, 2024 (Unaudited): Quantity of ether Fair Value Beginning balance as of January 1, 2025 5,050.0000 $ 16,869,879 Ether purchased 20,430.9720 68,863,151 Ether sold ( 14,446.5142 ) ( 53,408,140 ) Net realized gain (loss) on investment in ether sold to pay Sponsor fee – 593 Net realized gain (loss) on investment in ether sold for redemptions – 9,126,375 Change in unrealized appreciation (depreciation) on investment in ether – 4,464,507 Ending balance as of September 30, 2025 11,034.4578 $ 45,916,365 Quantity of ether Fair Value Beginning balance as of May 1, 2024 (initial seed creation date) – $ – Ether purchased 4,850.0000 15,805,033 Ether sold – – Net realized gain (loss) on investment in ether sold to pay Sponsor fee – – Net realized gain (loss) on investment in ether sold for redemptions – – Change in unrealized appreciation (depreciation) on investment in ether – ( 3,222,04

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