0002011535 2025-04-01 2026-03-31 0002011535 2025-09-30 0002011535 2026-06-09 0002011535 2026-03-31 0002011535 2025-03-31 0002011535 2024-04-01 2025-03-31 0002011535 ezet:FranklinEthereumETFMember 2026-03-31 0002011535 ezet:FranklinEthereumETFMember 2025-03-31 0002011535 ezet:FranklinEthereumETFMember 2025-04-01 2026-03-31 0002011535 ezet:FranklinEthereumETFMember 2024-04-01 2025-03-31 0002011535 ezet:EthereumMember 2026-03-31 0002011535 ezet:EthereumMember 2025-03-31 0002011535 ezet:EthereumMember ezet:FranklinEthereumETFMember 2026-03-31 0002011535 ezet:EthereumMember ezet:FranklinEthereumETFMember 2025-03-31 0002011535 2024-07-23 2025-03-31 0002011535 ezet:FranklinEthereumETFMember 2024-07-23 2025-03-31 0002011535 2024-07-22 0002011535 ezet:FranklinEthereumETFMember 2024-07-22 0002011535 ezet:InitialSeedSharesMember 2024-05-21 2024-05-21 0002011535 ezet:InitialSeedSharesMember 2024-05-21 0002011535 ezet:InitialSeedSharesMember 2024-06-27 2024-06-27 0002011535 ezet:SeedCreationUnitsMember 2024-06-27 0002011535 ezet:SeedCreationUnitsMember 2024-06-27 2024-06-27 0002011535 2024-06-27 2024-06-27 0002011535 2024-06-27 0002011535 ezet:InitialSeedSharesMember ezet:FranklinEthereumETFMember 2024-05-21 2024-05-21 0002011535 ezet:InitialSeedSharesMember ezet:FranklinEthereumETFMember 2024-05-21 0002011535 ezet:InitialSeedSharesMember ezet:FranklinEthereumETFMember 2024-06-27 2024-06-27 0002011535 ezet:SeedCreationUnitsMember ezet:FranklinEthereumETFMember 2024-06-27 0002011535 ezet:SeedCreationUnitsMember ezet:FranklinEthereumETFMember 2024-06-27 2024-06-27 0002011535 ezet:FranklinEthereumETFMember 2024-06-27 2024-06-27 0002011535 ezet:FranklinEthereumETFMember 2024-06-27 0002011535 2026-01-01 2026-03-31 0002011535 2024-02-08 2024-02-08 0002011535 srt:MaximumMember 2025-04-01 2026-03-31 0002011535 ezet:FrankinResourcesIncMember ezet:SponsorMember 2026-03-31 0002011535 ezet:FranklinEthereumETFMember 2024-02-08 2024-02-08 0002011535 srt:MaximumMember ezet:FranklinEthereumETFMember 2025-04-01 2026-03-31 0002011535 ezet:FrankinResourcesIncMember ezet:SponsorMember ezet:FranklinEthereumETFMember 2026-03-31 iso4217:USD shares iso4217:USD shares ezet:Ethereum pure ezet:CreationUnits iso4217:USD compsci:item ezet:Shares ezet:Segment 10-K true 2026-03-31 --03-31 2026 false 001-042169 Franklin Ethereum Trust DE 99-6268769 One Franklin Parkway San Mateo CA 94403 650 312-2000 Franklin Ethereum ETF Shares EZET CboeBZX No No Yes Yes Non-accelerated Filer true true false false false false 91611000 2700000 <div style="font-size: 10pt; font-weight: bold;"> Cybersecurity Risk Management Strategy and Governance Overview </div><div style="font-size: 10pt;"> The Trust and the Fund do not have any officers, directors or employees. The Sponsor is responsible for the oversight and overall management of the Trust and the Fund. The Sponsor is a wholly owned subsidiary of Franklin Resources, Inc. (“FRI”). FRI maintains global, firm-wide policies and procedures governing matters relating to crisis management, corporate continuity, business continuity planning and disaster recovery, enterprise business resilience, and corresponding risk mitigation processes and systems in these areas (collectively referred to as the “Global Corporate Continuity Program”). </div><div style="margin-left : 0pt; font-size : 10pt; ">The Global Corporate Continuity Program is generally overseen by the Business Recovery Governance Committee (“BRGC”). BRGC has developed certain policies and principles in implementing the program. The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. In line with the Global Corporate Continuity Program, the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. As appropriate, the Sponsor or its delegate will coordinate with FRI’s relevant risk management and disaster recovery-related committees to review risk monitoring and mitigation strategies as contemplated under the Global Corporate Continuity Program at least annually, and more often if there are significant internal or external changes affecting these risks as pertains to the Sponsor’s business and its Business Continuity Plan. </div><div style="margin-left : 0pt; font-size : 10pt; "> FRI has adopted the National Institute of Standards and Technology’s (“NIST”) cybersecurity framework as its security outline. The program is reviewed annually. Using the NIST framework as a guide, FRI’s cybersecurity program is organized around the following program domains: </div><div style="text-indent: -15pt; padding-left: 60.4pt;"> <div style="float: left; width: 15.0pt; white-space: nowrap;"> <span style="font-size: 10.0pt;">•</span> </div> <div> <span style="font-size: 10.0pt;">Identify critical assets, data, systems and capabilities, cybersecurity strategy and governing elements, threats and cybersecurity risks</span> </div> </div><div style="text-indent: -15pt; padding-left: 60.4pt;"> <div style="float: left; width: 15.0pt; white-space: nowrap;"> <span style="font-size: 10.0pt;">•</span> </div> <div> <span style="font-size: 10.0pt;">Protect assets (data, systems, networks, personnel, etc.) from external or internal malicious actors and failed practices</span> </div> </div><div style="text-indent: -15pt; padding-left: 60.4pt;"> <div style="float: left; width: 15.0pt; white-space: nowrap;"> <span style="font-size: 10.0pt;">•</span> </div> <div> <span style="font-size: 10.0pt;">Detect anomalies and security events through environments monitoring, analysis, remediation, and reporting. Engage outside vendors to periodically test the network infrastructure and software applications against known vulnerabilities and to ensure the use of a best practice security program</span> </div> </div><div style="text-indent: -15pt; padding-left: 60.4pt;"> <div style="float: left; width: 15.0pt; white-space: nowrap;"> <span style="font-size: 10.0pt;">•</span> </div> <div> <span style="font-size: 10.0pt;">Respond to incidents regardless of source or causality</span> </div> </div><div style="text-indent: -15pt; padding-left: 60.4pt;"> <div style="float: left; width: 15.0pt; white-space: nowrap;"> <span style="font-size: 10.0pt;">•</span> </div> <div> <span style="font-size: 10.0pt;">Recover through planning, improvements and communications (external and internal)</span> </div> </div><div style="text-indent: -15pt; padding-left: 60.4pt;"> <div style="float: left; width: 15.0pt; white-space: nowrap;"> <span style="font-size: 10.0pt;">•</span> </div> <div> <span style="font-size: 10.0pt;">Conduct after-action evaluation to identify what went well, what did not go well and improve FRI’s systems after an issue</span> </div> </div> true FRI maintains global, firm-wide policies and procedures governing matters relating to crisis management, corporate continuity, business continuity planning and disaster recovery, enterprise business resilience, and corresponding risk mitigation processes and systems in these areas (collectively referred to as the “Global Corporate Continuity Program”). <div style="margin-left : 0pt; font-size : 10pt; ">The Global Corporate Continuity Program is generally overseen by the Business Recovery Governance Committee (“BRGC”). BRGC has developed certain policies and principles in implementing the program. The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. In line with the Global Corporate Continuity Program, the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. As appropriate, the Sponsor or its delegate will coordinate with FRI’s relevant risk management and disaster recovery-related committees to review risk monitoring and mitigation strategies as contemplated under the Global Corporate Continuity Program at least annually, and more often if there are significant internal or external changes affecting these risks as pertains to the Sponsor’s business and its Business Continuity Plan. </div> The Global Corporate Continuity Program is generally overseen by the Business Recovery Governance Committee (“BRGC”). The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. In line with the Global Corporate Continuity Program, the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. true true true true false false false false false 238 PricewaterhouseCoopers LLP San Francisco, California 42237443 21614322 42237443 21614322 6778 8924 6778 8924 42230665 21605398 2650000 2650000 1550000 1550000 15.94 13.94 69199790 69199790 37851948 37851948 0 0 0 0 20095.4606 69199790 42237443 1.0002 69199790 42237443 1.0002 -6778 -0.0002 42230665 1 11780.2062 37851948 21614322 1.0004 11780.2062 37851948 21614322 1.0004 -8924 -0.0004 21605398 1 108260 44677 0 35753 108260 8924 -108260 -8924 2746623 -995550 -10724721 -16238402 -7978098 -17233952 -8086358 -17242876 -3.33 -10.85 -8086358 -17242876 75689578 42553442 47088359 6326233 2746623 -995550 -10724721 -16238402 -2146 8924 -28711625 -36227209 75689578 42553442 46977953 6326233 28711625 36227209 0 0 0 0 0 0 21605398 2621065 -108260 -8924 2746623 -995550 -10724721 -16238402 -8086358 -17242876 75689578 42553442 46977953 6326233 28711625 36227209 42230665 21605398 4000 4000 25 25 100000 100000 100000 100000 2 2 100000 100000 380 380 0.0076 0.0076 760 760 760 760 3446.37 3446.37 2619241.2 2619241.2 760 760 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 1. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">ORGANIZATION</span> </div> </div><div style="clear: both;">  </div><div> The Franklin Ethereum Trust (the “Trust”) was formed as a Delaware statutory trust on February 8, 2024, and is governed by the provisions of an Amended and Restated Agreement and Declaration of Trust dated as of May 30, 2024 (the “Declaration of Trust”). The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not a commodity pool for purposes of the Commodity Exchange Act (“CEA”). The accompanying combined financial statements relate to the Trust, as registrant, and the one series that it currently offers, the Franklin Ethereum ETF (the “Fund”) presented on a combined basis. Separate, series-level financial statements are provided for the Fund in another section of this report. The Trust had no operations prior to the Fund’s launch, other than matters relating to its organization and the registration of the Fund under the Securities Act of 1933, as amended (the “Securities Act”). The Sponsor of the Trust and the Fund (the “Sponsor”) is Franklin Holdings, LLC. The Sponsor is a Delaware limited liability company formed on July 21, 2021. The Sponsor is not subject to regulation by the U.S. Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator with respect to the Fund, or a commodity trading advisor with respect to the Fund. The Fund issues shares (the “Shares”), which represent units of fractional undivided beneficial interest and ownership of in the Fund. The Shares of the Fund are listed on the Cboe BZX Exchange, Inc. (“Cboe BZX Exchange” or the “Exchange”). </div><div>  </div><div> The Fund seeks to reflect generally the performance of the price of ether before payment of the Fund's expenses and liabilities. The Shares are intended to offer a convenient means of making an investment similar to an investment in ether relative to acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove obstacles associated with the complexities and operational burdens involved in a direct investment in ether by providing an investment with a value that reflects the price of the ether owned by the Fund at such time, less the Fund's expenses. The Fund is not a proxy for a direct investment in ether. Rather, the Shares are intended to provide a cost-effective alternative means of obtaining investment exposure through the securities markets that is similar to an investment in ether. The Fund is a passive investment vehicle and is not a leveraged product. The Sponsor does not actively manage the ether held by the Fund. This means that the Sponsor does not sell ether at times when its price is in the expectation of future price increases. The Fund will not utilize leverage, derivatives or similar instruments or transactions in seeking to meet its investment objective. </div><div>  </div><div> BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, or “BNYM,” is the Fund’s Administrator (the “Administrator”) and Transfer Agent (the “Transfer Agent”). BNYM also serves as the custodian of the Fund’s cash (the “Cash Custodian”). The Administrator is generally responsible for the day-to-day administration of the Fund, including the calculation of the Fund’s net asset value (“NAV”) per Share. The Ether Custodian is responsible for safekeeping the ether owned by the Fund. The Ether Custodian is Coinbase Custody Trust Company, LLC (“Coinbase Custody”). Coinbase Inc., an affiliate of the Ether Custodian, is the Fund’s Prime Broker. CSC Delaware Trust Company, a subsidiary of the Corporation Service Company (the “Trustee”), is the sole trustee of the Trust. Franklin Distributors, LLC is the marketing agent of the Fund (the “Marketing Agent”). </div><div>  </div><div> The Fund issues and redeems Shares only to certain eligible financial institutions called Authorized Participants and only in one or more blocks of 50,000 Shares (“Creation Units”). Creation Units are directly redeemable only by Authorized Participants. Creation Units are issued and redeemed in exchange for cash. The Shares are listed and traded on the Exchange under the ticker symbol “EZET.” The market price of the Shares may be different than the Fund’s NAV per Share. The Fund issues and redeems Shares in Creation Units on a continuous basis at the applicable NAV per Share on the transaction order date. Except when aggregated in Creation Units, the Shares are not redeemable securities. </div><div>  </div><div> The Trust is an “emerging growth company” as that term is used in the Jumpstart Our Business Startups Act (the “JOBS Act”), subject to reduced public company reporting requirements under U.S. federal securities laws. </div><div>  </div><div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). As noted above, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. </div><div>  </div><div> The fiscal year end of the Trust and the Fund is March 31st. </div> 50000 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 2. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">SIGNIFICANT ACCOUNTING POLICIES</span> </div> </div><div style="clear: both;">  </div><div> In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management of the Sponsor makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates.</div><div>The accompanying audited financial statements were prepared in accordance with GAAP for financial information and with the instructions for Form 10-K and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). </div><div>  </div><div> The following is a summary of significant accounting policies followed by the Trust and the Fund. </div><div>  </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.1.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Basis of Presentation</span> </div> </div><div style="clear: both;">  </div><div> The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div>  </div><div> The financial statements are presented for the Trust, as the registrant, combined with the Fund. Financial statements for the Fund presented at the series level are provided separately in this report. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the Trust, as the registrant, combined with the Fund. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. </div><div>  </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.2.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Calculation of NAV and NAV per Share</span> </div> </div><div style="clear: both;">  </div><div> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the ether held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CME CF Ether-Dollar Reference Rate – New York Variant for the Ether – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div>  </div><div> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the ether held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. The Trust’s periodic financial statements may not utilize this net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP. </div><div>  </div><div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.3.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Valuation of Ether</span> </div> </div><div style="clear: both;">  </div><div> The Trust’s financial statements are prepared in accordance with GAAP for annual financial information. Ether is priced at 11:59:59PM ET. With respect to the Fund’s ether holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for ether as of the Fund’s financial statement measurement date. </div><div>  </div><div> ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: </div><div>  </div><div> Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; </div><div>  </div><div> 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 </div><div>  </div><div> Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. </div><div>  </div><div>As of March 31, 2026 and March 31, 2025, the value of the ether held by the Fund was categorized as Level 1. </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <p> </p><div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.4.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Fees, Expenses, and Realized Gains (Losses</span><span style="color: rgb(32, 37, 41);">)</span> </div> </div><div style="clear: both;">  </div><div> The Trust’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and Ether Custodian, collectively) and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs. Ether transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of ether are determined on a specific identification basis and recognized in the Combined Statements of Operations in the period in which the sale or disposition occurs, respectively. </div><div>  </div><div> The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Fund will sell ether as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any Ethereum network fees or other similar transaction fees, in connection with any sales of ether necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any Ethereum network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period from July 23, 2024 (the day the Shares were initially listed on the Exchange) to January 31, 2025, the Sponsor agreed to waive the entire Sponsor’s Fee on the first $10.0 billion of the Fund’s assets. For the year ended March 31, 2026, the Fund recognized the Sponsor’s Fee of $108,260. </div><div>  </div><div> The Sponsor is not required to pay any extraordinary or non-routine expenses. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, Ethereum network fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the Ethereum blockchain, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, Ether Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor may not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell ether to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of ether held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell ether to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of ether represented by each Share. </div><div>  </div><div> There have been no extraordinary or non-routine expenses during the periods presented. </div><div>  </div><div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 2.5. </div> <div> <span style="text-decoration: underline;">Ether Receivable and Payable</span> </div> </div><div style="margin-left: 15.4pt; clear: both;">  </div><div> Ether receivable or payable represents the quantity of Ether covered by contractually binding orders for the creation or redemption of Shares respectively, where the Ether has not yet been transferred to or from the Fund's account. Generally, ownership of the Ether is transferred within one business day of the trade date. </div><div>  </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.6.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Income Taxes</span> </div> </div><div style="clear: both;">  </div><div> The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gain, losses, and expenses will “flow through” to the Shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. </div><div>  </div><div> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026 and 2025, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. March 31, 2026 and 2025 tax years remain open for examination. There were no examinations in progress at period end.</div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <p> </p><div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.7.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Creation and Redemption of Shares</span> </div> </div><div style="clear: both;">  </div><div> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. </div><div>  </div><div> For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of ether represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the ether represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of ether has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Ether Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div>  </div><div> The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive ether as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving ether as part of the creation or redemption process. The Fund will create Shares by receiving ether from a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to deliver the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the ether to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the ether to the Fund. The Fund will redeem shares by delivering ether to a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to receive the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the ether from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the ether from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. </div><div>  </div><div> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of ether and the trading price of the Shares on the Cboe BZX Exchange at the time of the offer. Shares offered at different times may have different offering prices. </div><div>  </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the year from April 1, 2025 to March 31, 2026 are as follows: </div><div style="text-align: justify;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td><td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Shares</span> </td><td style="vertical-align: bottom; text-align: center;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td><td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount<sup>#</sup></span> </td><td style="vertical-align: bottom; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">1,550,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,850,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(1,750,000</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2,650,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">67,559,123</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div style="text-align: justify;">  </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025 are as follows: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="vertical-align: middle; text-align: center; width: 1%;"> </td><td colspan="2" style="vertical-align: middle; text-align: center; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Shares</span> </td><td style="vertical-align: middle; text-align: center; width: 1%;"> </td> <td style="vertical-align: middle; text-align: center; width: 1%;"> </td><td colspan="2" style="vertical-align: middle; text-align: center; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount<sup>#</sup></span> </td><td style="vertical-align: middle; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">100,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,620,289</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">1,750,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,550,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div>  </div><div style="text-indent: -36pt; padding-left: 36pt; font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> # </div> <div> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> <div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.1.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Basis of Presentation</span> </div> </div><div> The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div> The financial statements are presented for the Trust, as the registrant, combined with the Fund. Financial statements for the Fund presented at the series level are provided separately in this report. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the Trust, as the registrant, combined with the Fund. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. </div> <div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.2.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Calculation of NAV and NAV per Share</span> </div> </div><div> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the ether held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CME CF Ether-Dollar Reference Rate – New York Variant for the Ether – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the ether held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. The Trust’s periodic financial statements may not utilize this net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP. </div> <div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.3.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Valuation of Ether</span> </div> </div><div> The Trust’s financial statements are prepared in accordance with GAAP for annual financial information. Ether is priced at 11:59:59PM ET. With respect to the Fund’s ether holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for ether as of the Fund’s financial statement measurement date. </div><div> ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: </div><div> Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; </div><div> 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 </div><div> Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. </div><div>As of March 31, 2026 and March 31, 2025, the value of the ether held by the Fund was categorized as Level 1. </div> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.4.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Fees, Expenses, and Realized Gains (Losses</span><span style="color: rgb(32, 37, 41);">)</span> </div><div> The Trust’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and Ether Custodian, collectively) and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs. Ether transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of ether are determined on a specific identification basis and recognized in the Combined Statements of Operations in the period in which the sale or disposition occurs, respectively. </div><div> The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Fund will sell ether as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any Ethereum network fees or other similar transaction fees, in connection with any sales of ether necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any Ethereum network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period from July 23, 2024 (the day the Shares were initially listed on the Exchange) to January 31, 2025, the Sponsor agreed to waive the entire Sponsor’s Fee on the first $10.0 billion of the Fund’s assets. For the year ended March 31, 2026, the Fund recognized the Sponsor’s Fee of $108,260. </div><div> The Sponsor is not required to pay any extraordinary or non-routine expenses. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, Ethereum network fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the Ethereum blockchain, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, Ether Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor may not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell ether to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of ether held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell ether to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of ether represented by each Share. </div><div> There have been no extraordinary or non-routine expenses during the periods presented. </div> 500000 0.0019 0.0019 10000000000 108260 500000 500000 0 <div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 2.5. </div> <div> <span style="text-decoration: underline;">Ether Receivable and Payable</span> </div> </div><div> Ether receivable or payable represents the quantity of Ether covered by contractually binding orders for the creation or redemption of Shares respectively, where the Ether has not yet been transferred to or from the Fund's account. Generally, ownership of the Ether is transferred within one business day of the trade date. </div> P1D <div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.6.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Income Taxes</span> </div> </div><div> The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gain, losses, and expenses will “flow through” to the Shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. </div><div> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026 and 2025, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. March 31, 2026 and 2025 tax years remain open for examination. There were no examinations in progress at period end.</div> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.7.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Creation and Redemption of Shares</span> </div><div> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. </div><div> For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of ether represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the ether represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of ether has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Ether Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div> The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive ether as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving ether as part of the creation or redemption process. The Fund will create Shares by receiving ether from a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to deliver the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the ether to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the ether to the Fund. The Fund will redeem shares by delivering ether to a third-party that is not the Authorized Participant and the Fund—not the Authorized Participant—is responsible for selecting the third-party to receive the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the ether from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the ether from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. </div><div> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of ether and the trading price of the Shares on the Cboe BZX Exchange at the time of the offer. Shares offered at different times may have different offering prices. </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the year from April 1, 2025 to March 31, 2026 are as follows: </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td><td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Shares</span> </td><td style="vertical-align: bottom; text-align: center;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td><td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount<sup>#</sup></span> </td><td style="vertical-align: bottom; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">1,550,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,850,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(1,750,000</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2,650,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">67,559,123</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025 are as follows: </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="vertical-align: middle; text-align: center; width: 1%;"> </td><td colspan="2" style="vertical-align: middle; text-align: center; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Shares</span> </td><td style="vertical-align: middle; text-align: center; width: 1%;"> </td> <td style="vertical-align: middle; text-align: center; width: 1%;"> </td><td colspan="2" style="vertical-align: middle; text-align: center; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount<sup>#</sup></span> </td><td style="vertical-align: middle; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">100,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,620,289</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">1,750,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,550,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div style="text-indent: -36pt; padding-left: 36pt; font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> # </div> <div> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> <div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the year from April 1, 2025 to March 31, 2026 are as follows: </div><div style="text-align: justify;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td><td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Shares</span> </td><td style="vertical-align: bottom; text-align: center;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td><td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount<sup>#</sup></span> </td><td style="vertical-align: bottom; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">1,550,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,850,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(1,750,000</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="text-align: justify;"> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2,650,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">67,559,123</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div style="text-align: justify;">  </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025 are as follows: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="vertical-align: middle; text-align: center; width: 1%;"> </td><td colspan="2" style="vertical-align: middle; text-align: center; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Shares</span> </td><td style="vertical-align: middle; text-align: center; width: 1%;"> </td> <td style="vertical-align: middle; text-align: center; width: 1%;"> </td><td colspan="2" style="vertical-align: middle; text-align: center; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount<sup>#</sup></span> </td><td style="vertical-align: middle; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">100,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,620,289</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">1,750,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,550,000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div>  </div><div style="text-indent: -36pt; padding-left: 36pt; font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> # </div> <div> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> 1550000 38847498 2850000 75689578 1750000 46977953 2650000 67559123 100000 2620289 1750000 42553442 300000 6326233 1550000 38847498 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -7.3pt; padding-left: 22.7pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 3. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">INVESTMENT IN ETHER</span> </div> </div><div style="clear: both;">  </div><div> The following represents the changes in quantity of ether held and the respective fair value during the year from April 1, 2025 to March 31, 2026: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Quantity of ether</span> </td><td style="text-align: center;"> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount in US$</span> </td><td style="text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">11,780.2062</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">21,636.6183</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(13,282.9028</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(38.4611</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(110,406</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,746,623</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(10,724,721</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">20,095.4606</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">42,237,443</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div>The following represents the changes in quantity of ether held and the respective fair value during the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Quantity of ether</span> </td><td style="text-align: center;"> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount in US$</span> </td><td style="text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">760.0000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,621,065</td><td style="vertical-align: bottom; text-align: left; width: 1%;">^</td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">13,300.0000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(2,279.7938</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(995,550</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(16,238,402</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">11,780.2062</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> <div> The following represents the changes in quantity of ether held and the respective fair value during the year from April 1, 2025 to March 31, 2026: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Quantity of ether</span> </td><td style="text-align: center;"> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount in US$</span> </td><td style="text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">11,780.2062</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">21,636.6183</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(13,282.9028</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(38.4611</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(110,406</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,746,623</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(10,724,721</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">20,095.4606</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">42,237,443</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div>The following represents the changes in quantity of ether held and the respective fair value during the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Quantity of ether</span> </td><td style="text-align: center;"> </td> <td style="text-align: center;"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: bold;">Amount in US$</span> </td><td style="text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">760.0000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; width: 1%;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;">$</td><td style="vertical-align: bottom; text-align: right; width: 9%;">2,621,065</td><td style="vertical-align: bottom; text-align: left; width: 1%;">^</td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">13,300.0000</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(2,279.7938</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td style="vertical-align: bottom; text-align: right; width: 9%;">(995,550</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(16,238,402</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div style="text-indent: -7.2pt; padding-left: 7.2pt;"> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">11,780.2062</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td><td style="vertical-align: bottom; text-align: left; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td><td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> </table><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> 11780.2062 21614322 21636.6183 75689578 13282.9028 46977953 -38.4611 110406 2746623 -10724721 20095.4606 42237443 760 2621065 13300 42553442 2279.7938 6326233 0 0 -995550 -16238402 11780.2062 21614322 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 4. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">RELATED PARTIES</span> </div> </div><div style="clear: both;">  </div><div> The Sponsor of the Trust is Franklin Holdings, LLC. The Sponsor is responsible for establishing the Trust and for the registration of the Shares. The Sponsor generally oversees the performance of the Fund’s principal service providers but does not exercise day-to-day oversight over such service providers. The Sponsor, with assistance and support from the Administrator, is responsible for preparing and filing periodic reports on behalf of the Trust and the Fund with the SEC and will provide any required certification for such reports. The Sponsor has designated the independent registered public accounting firm of the Trust on behalf of the Fund and may from time to time employ legal counsel for the Fund. </div><div>  </div><div> Franklin Distributors, LLC serves as the Marketing Agent of the Fund. The Sponsor and the Marketing Agent are affiliates, and each is considered to be a related party to the Trust and the Fund. Franklin Resources, Inc. (“FRI”) is the ultimate parent company of the Sponsor and the Marketing Agent. FRI is the holding company for various subsidiaries that together are referred to as Franklin Templeton. </div><div>  </div><div> The Sponsor is a related party of the Trust and the Fund. The Fund pays the Sponsor a unitary fee for services performed pursuant to the Sponsor Agreement. The Marketing Agent is an affiliate of the Sponsor. Expenses payable to the Marketing Agent, if any, are paid through the Sponsor’s fee. </div><div>  </div><div> The Trust also considers Franklin Resources, Inc., the ultimate parent company of the Sponsor, to be a related party of the Trust and the Fund. As of March 31, 2026, no shares of the Fund were held by a related party. </div> 0 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 5. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">CONCENTRATION OF RISK</span> </div> </div><div style="margin-left: 23.65pt; clear: both;">  </div><div> The Fund holds only ether and cash, 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 Fund. 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 digital assets and blockchain technology industry; trading activity on digital asset platforms, which, in many cases, may be unregulated or subject to regulation by a relevant jurisdiction but potentially non-compliant with such regulations 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 digital asset platforms, which in many cases are largely unregulated and substantially less regulated relative to securities markets; and forks in the Ethereum network, among other things. </div> <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <p> </p><div style="float: left; width: 36.0pt; white-space: nowrap;"> 6. </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">COMBINED FINANCIAL HIGHLIGHTS</span> </div> </div><div style="margin-left: 23.65pt; clear: both;">  </div><table cellpadding="0" style="margin-left: auto; margin-right: 0px; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 2%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 2%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top;"> <td> </td> <td style="text-align: center; vertical-align: bottom; white-space: nowrap;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <div> <span style="font-weight: bold;">For the Year<br/>Ended<br/>March 31, 2026</span> </div> </td><td style="text-align: center; vertical-align: bottom; border-color: black; white-space: nowrap;"> </td> <td style="text-align: center; vertical-align: bottom; white-space: nowrap;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <div> <span style="font-weight: bold;">For the period July 23, 2024<br/> (Date of<br/></span> </div> <div> <span style="font-weight: bold;">commencement of<br/> operations) through March<br/> 31, 2025</span> </div> </td><td style="text-align: center; vertical-align: bottom; border-color: black; white-space: nowrap;"> </td> </tr> <tr style="vertical-align: top; height: 11.25pt;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, beginning of year</span> </div> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">26.21</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net investment loss<sup>(b)</sup> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.04</td><td style="text-align: left; width: 2%;">) </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.01</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Net realized and unrealized gain (loss) on investment in ether<sup>(c)</sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.04</td><td style="text-align: left; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.26</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top;"> <td> <div> Net change in net assets from operations </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.00</td><td style="text-align: left; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.27</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, end of year</span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">15.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Total return, at net asset value<sup>(e)</sup></span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">14.35</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(46.81</td><td style="text-align: left; width: 2%;">)%<span style="font-size: .83em; vertical-align: super;">(d)</span></td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Ratio to average net assets</span> </div> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top;"> <td> <div> Net investment loss </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">(0.19</td><td style="text-align: left; vertical-align: middle; width: 2%;">)%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; vertical-align: bottom; white-space: nowrap; width: 9%; padding-left: 10px;">(0.04</td><td style="text-align: left; width: 2%; white-space: nowrap; vertical-align: top;">)%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Gross expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: middle; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: bottom; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: top; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">0.04</td><td style="text-align: left; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> </table><div>  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (a) </div> <div> The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial ether seed creation transaction conducted on June 27, 2024. Prior to June 27, 2024, 4,000 shares were acquired on May 21, 2024 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (b) </div> <div> Calculated using average Shares outstanding </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (c) </div> <div> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investment for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (d) </div> <div> Percentage is not annualized. </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (e) </div> <div> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.6pt; padding-left: 33pt;"> <div style="float: left; width: 17.6pt; white-space: nowrap;"> (f) </div> <div> Annualized. </div> </div> <table cellpadding="0" style="margin-left: auto; margin-right: 0px; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 2%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 2%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top;"> <td> </td> <td style="text-align: center; vertical-align: bottom; white-space: nowrap;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <div> <span style="font-weight: bold;">For the Year<br/>Ended<br/>March 31, 2026</span> </div> </td><td style="text-align: center; vertical-align: bottom; border-color: black; white-space: nowrap;"> </td> <td style="text-align: center; vertical-align: bottom; white-space: nowrap;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> </td><td style="text-align: center; vertical-align: bottom; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <div> <span style="font-weight: bold;">For the period July 23, 2024<br/> (Date of<br/></span> </div> <div> <span style="font-weight: bold;">commencement of<br/> operations) through March<br/> 31, 2025</span> </div> </td><td style="text-align: center; vertical-align: bottom; border-color: black; white-space: nowrap;"> </td> </tr> <tr style="vertical-align: top; height: 11.25pt;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, beginning of year</span> </div> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">26.21</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net investment loss<sup>(b)</sup> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.04</td><td style="text-align: left; width: 2%;">) </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.01</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Net realized and unrealized gain (loss) on investment in ether<sup>(c)</sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.04</td><td style="text-align: left; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.26</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top;"> <td> <div> Net change in net assets from operations </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.00</td><td style="text-align: left; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.27</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, end of year</span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">15.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Total return, at net asset value<sup>(e)</sup></span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">14.35</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(46.81</td><td style="text-align: left; width: 2%;">)%<span style="font-size: .83em; vertical-align: super;">(d)</span></td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Ratio to average net assets</span> </div> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top;"> <td> <div> Net investment loss </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">(0.19</td><td style="text-align: left; vertical-align: middle; width: 2%;">)%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; vertical-align: bottom; white-space: nowrap; width: 9%; padding-left: 10px;">(0.04</td><td style="text-align: left; width: 2%; white-space: nowrap; vertical-align: top;">)%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Gross expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: middle; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: bottom; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: top; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">0.04</td><td style="text-align: left; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> </table><div>  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (a) </div> <div> The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial ether seed creation transaction conducted on June 27, 2024. Prior to June 27, 2024, 4,000 shares were acquired on May 21, 2024 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (b) </div> <div> Calculated using average Shares outstanding </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (c) </div> <div> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investment for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (d) </div> <div> Percentage is not annualized. </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.7pt; padding-left: 33.05pt;"> <div style="float: left; width: 17.7pt; white-space: nowrap;"> (e) </div> <div> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div><div style="margin-left: 33.05pt; clear: both;">  </div><div style="text-indent: -17.6pt; padding-left: 33pt;"> <div style="float: left; width: 17.6pt; white-space: nowrap;"> (f) </div> <div> Annualized. </div> </div> 13.94 26.21 -0.04 -0.01 2.04 -12.26 2 -12.27 15.94 13.94 0.1435 -0.4681 -0.0019 -0.0004 0.0019 0.0019 0.0019 0.0004 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 7. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">COMMITMENTS AND CONTINGENCIES</span> </div> </div><div style="clear: both;">  </div><div> In the normal course of business, the Trust, on behalf of the Fund, may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. </div> <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 8. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">INDEMNIFICATION</span> </div> </div><div style="clear: both;">  </div><div> Under the Trust’s organizational documents, the Sponsor and its shareholders, members, directors, affiliates, officers, employees and subsidiaries are indemnified by the Trust against certain liabilities. The Fund has also agreed to indemnify certain of its other service providers, including the Administrator, the Marketing Agent, the Custodians and the Trustee (including its officers, affiliates, directors, employees, and agents), for certain liabilities incurred by such parties in connection with their respective agreements to provide services for the Fund. </div><div>  </div><div> The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any ether or other assets of the Fund or the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. </div><div>  </div><div> The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. </div><div>The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. </div> <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 9. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">OPERATING SEGMENTS</span> </div> </div><div style="clear: both;">  </div><div> The Fund, which is the sole series of the Trust, and the Trust operate as a <span style="-sec-ix-hidden: hidden-fact-8">single</span> operating segment, which is an investment portfolio. Executive officers of the Fund’s Sponsor perform the functions of the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements. </div><div>  </div><div> For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Combined Statements of Assets and Liabilities and the Combined Statements of Operations, along with the related Notes to the Combined Financial Statements. The Combined Schedules of Investments provide details of the Fund’s investments that generate returns such as realized and unrealized gains or losses. Performance metrics and expense ratios are disclosed in the Combined Financial Highlights. </div> <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 10. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">SUBSEQUENT EVENTS</span> </div> </div><div style="clear: both;">  </div><div> The Trust and the Fund have evaluated subsequent events through the issuance of the financial statements and determined that no such events have occurred that require disclosure. </div> 42237443 21614322 42237443 21614322 6778 8924 6778 8924 42230665 21605398 2650000 2650000 1550000 1550000 15.94 13.94 20095.4606 69199790 42237443 1.0002 69199790 42237443 1.0002 -6778 -0.0002 42230665 1 11780.2062 37851948 21614322 1.0004 11780.2062 37851948 21614322 1.0004 -8924 -0.0004 21605398 1 108260 44677 0 35753 108260 8924 -108260 -8924 2746623 -995550 -10724721 -16238402 -7978098 -17233952 -8086358 -17242876 -3.33 -10.85 -8086358 -17242876 75689578 42553442 47088359 6326233 2746623 -995550 -10724721 -16238402 -2146 8924 -28711625 -36227209 75689578 42553442 46977953 6326233 28711625 36227209 0 0 0 0 0 0 21605398 2621065 -108260 -8924 2746623 -995550 -10724721 -16238402 -8086358 -17242876 75689578 42553442 46977953 6326233 28711625 36227209 42230665 21605398 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 1. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">ORGANIZATION</span> </div> </div><div style="clear: both;">  </div><div> The Franklin Ethereum Trust (the “Trust”) was formed as a Delaware statutory trust on February 8, 2024, and is governed by the provisions of an Amended and Restated Agreement and Declaration of Trust dated as of May 30, 2024 (the “Declaration of Trust”). The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not a commodity pool for purposes of the Commodity Exchange Act (“CEA”). The accompanying financial statements relate to the one series that the Trust currently offers, the Franklin Ethereum ETF (the “Fund”). The Trust had no operations prior to the Fund’s launch, other than matters relating to its organization and the registration of the Fund under the Securities Act of 1933, as amended (the “Securities Act”). The Sponsor of the Trust and the Fund (the “Sponsor”) is Franklin Holdings, LLC. The Sponsor is a Delaware limited liability company formed on July 21, 2021. The Sponsor is not subject to regulation by the U.S. Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator with respect to the Fund, or a commodity trading advisor with respect to the Fund. The Fund issues shares (the “Shares”), which represent units of fractional undivided beneficial interest in the Fund. The Shares of the Fund are listed on the Cboe BZX Exchange, Inc. (“Cboe BZX Exchange” or the “Exchange”). </div><div>  </div><div> The Fund seeks to reflect generally the performance of the price of ether before payment of the Fund's expenses and liabilities. The Shares are intended to offer a convenient means of making an investment similar to an investment in ether relative to acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove obstacles associated with the complexities and operational burdens involved in a direct investment in ether by providing an investment with a value that reflects the price of the ether owned by the Fund at such time, less the Fund's expenses. The Fund is not a proxy for a direct investment in ether. Rather, the Shares are intended to provide a cost-effective alternative means of obtaining investment exposure through the securities markets that is similar to an investment in ether. The Fund is a passive investment vehicle and is not a leveraged product. The Sponsor does not actively manage the ether held by the Fund. This means that the Sponsor does not sell ether at times when its price is in the expectation of future price increases. The Fund will not utilize leverage, derivatives or similar instruments or transactions in seeking to meet its investment objective. </div><div>  </div><div> BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, or “BNYM,” is the Fund’s Administrator (the “Administrator”) and Transfer Agent (the “Transfer Agent”). BNYM also serves as the custodian of the Fund’s cash (the “Cash Custodian”). The Administrator is generally responsible for the day-to-day administration of the Fund, including the calculation of the Fund’s net asset value (“NAV”) per Share. The Ether Custodian is responsible for safekeeping the ether owned by the Fund. The Ether Custodian is Coinbase Custody Trust Company, LLC (“Coinbase Custody”). Coinbase Inc., an affiliate of the Ether Custodian, is the Fund’s Prime Broker. CSC Delaware Trust Company, a subsidiary of the Corporation Service Company (the “Trustee”), is the sole trustee of the Trust. Franklin Distributors, LLC is the marketing agent of the Fund (the “Marketing Agent”). </div><div>  </div><div> The Fund issues and redeems Shares only to certain eligible financial institutions called Authorized Participants and only in one or more blocks of 50,000 Shares (“Creation Units”). Creation Units are directly redeemable only by Authorized Participants. Creation Units are issued and redeemed in exchange for cash. The Shares are listed and traded on the Exchange under the ticker symbol “EZET.” The market price of the Shares may be different than the Fund’s NAV per Share. The Fund issues and redeems Shares in Creation Units on a continuous basis at the applicable NAV per Share on the transaction order date. Except when aggregated in Creation Units, the Shares are not redeemable securities. </div><div>  </div><div> The Fund is an “emerging growth company” as that term is used in the the Jumpstart Our Business Startups Act (the “JOBS Act”), subject to reduced public company reporting requirements under U.S. federal securities laws. </div><div>  </div><div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). As noted above, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. </div><div>  </div><div> The fiscal year end of the Trust and the Fund is March 31st. </div> 50000 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -8.3pt; padding-left: 23.65pt;"> <p> </p><div style="float: left; width: 36.0pt; white-space: nowrap;"> 2. </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">SIGNIFICANT ACCOUNTING POLICIES</span> </div> </div><div style="clear: both;">  </div><div> In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management of the Sponsor makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates. </div><div>  </div><div> The accompanying audited financial statements were prepared in accordance with GAAP for financial information and with the instructions for Form 10-K and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). </div><div>  </div><div> The following is a summary of significant accounting policies followed by the Trust and the Fund. </div><div>  </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.1.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Basis of Presentation</span> </div> </div><div style="clear: both;">  </div><div> The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div>  </div><div> The financial statements are presented for the Fund, which is the sole series of the Trust. Financial statements for the Trust, as the registrant, combined with the Fund are provided separately in this report. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the the Fund, which is the sole series of the Trust. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. Combined financial statements for the Trust, as registrant, and the Fund are presented separately within this report. </div><div>  </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.2.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Calculation of NAV and NAV per Share</span> </div> </div><div style="clear: both;">  </div><div> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the ether held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CME CF Ether-Dollar Reference Rate – New York Variant for the Ether – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div>  </div><div> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the ether held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. The Trust’s periodic financial statements may not utilize this net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP. </div><div>  </div><div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.3.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Valuation of Ether</span> </div> </div><div style="clear: both;">  </div><div> The Fund’s financial statements are prepared in accordance with GAAP for annual financial information. Ether is priced at 11:59:59PM ET. With respect to the Fund’s ether holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for ether as of the Fund’s financial statement measurement date. </div><div>  </div><div> ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: </div><div>  </div><div> Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; </div><div>  </div><div> 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 </div><div>  </div><div> Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. </div><div>  </div><div>As of March 31, 2026 and March 31, 2025, the value of the ether held by the Fund was categorized as Level 1. </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <p> </p><div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.4.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Fees, Expenses, and Realized Gains (Losses</span><span style="color: rgb(32, 37, 41);">)</span> </div> </div><div style="clear: both;">  </div><div> The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and Ether Custodian, collectively) and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs. Ether transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of ether are determined on a specific identification basis and recognized in the Statements of Operations in the period in which the sale or disposition occurs, respectively. </div><div>  </div><div> The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Fund will sell ether as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any Ethereum network fees or other similar transaction fees, in connection with any sales of ether necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any Ethereum network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period from July 23, 2024 (the day the Shares were initially listed on the Exchange) to January 31, 2025, the Sponsor agreed to waive the entire Sponsor’s Fee on the first $10.0 billion of the Fund’s assets. For the year ended March 31, 2026, the Fund accrued the Sponsor’s Fee of $108,260. </div><div>  </div><div> The Sponsor is not required to pay any extraordinary or non-routine expenses. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, Ethereum network fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the Ethereum blockchain, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, Ether Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell ether to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of ether held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell ether to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of ether represented by each Share. </div><div>  </div><div> There have been no extraordinary or non-routine expenses during the periods presented. </div><div>  </div><div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 2.5. </div> <div> <span style="text-decoration: underline;">Ether Receivable and Payable</span> </div> </div><div style="margin-left: 15.4pt; clear: both;">  </div><div> Ether receivable or payable represents the quantity of Ether covered by contractually binding orders for the creation or redemption of Shares respectively, where the Ether has not yet been transferred to or from the Fund's account. Generally, ownership of the Ether is transferred within one business day of the trade date. </div><div>  </div><div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.6.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Income Taxes</span> </div> </div><div> </div><div style="margin: 0in;">The<span style="letter-spacing:.55pt"> </span>Fund<span style="letter-spacing:.6pt"> </span>is<span style="letter-spacing:.45pt"> </span>classified<span style="letter-spacing:.7pt"> </span>as<span style="letter-spacing:.45pt"> </span>a<span style="letter-spacing:.45pt"> </span>“grantor<span style="letter-spacing:.65pt"> </span>trust”<span style="letter-spacing:.6pt"> </span>for<span style="letter-spacing:.5pt"> </span>United<span style="letter-spacing:.6pt"> </span>States<span style="letter-spacing:.6pt"> </span>federal<span style="letter-spacing:.6pt"> </span>income<span style="letter-spacing:.65pt"> </span>tax<span style="letter-spacing:.5pt"> </span>purposes. As<span style="letter-spacing:.5pt"> </span>a<span style="letter-spacing:.45pt"> </span>result,<span style="letter-spacing:.6pt"> </span>the Trust<span style="letter-spacing:.6pt"> </span>and<span style="letter-spacing:.6pt"> </span>the<span style="letter-spacing:.6pt"> </span>Fund<span style="letter-spacing:.6pt"> </span>are<span style="letter-spacing:.6pt"> </span>not<span style="letter-spacing:.7pt"> </span>subject<span style="letter-spacing:.6pt"> </span>to<span style="letter-spacing:.45pt"> </span>United<span style="letter-spacing:.6pt"> </span>States federal<span style="letter-spacing: 2.0pt"> </span>income<span style="letter-spacing:1.05pt"> </span>tax.<span style="letter-spacing:.9pt"> </span>Instead,<span style="letter-spacing:1.05pt"> </span>the<span style="letter-spacing:.85pt"> </span>Fund’s<span style="letter-spacing:1.0pt"> </span>income,<span style="letter-spacing:1.05pt"> </span>gain,<span style="letter-spacing:1.0pt"> </span>losses,<span style="letter-spacing:.95pt"> </span>and<span style="letter-spacing:.9pt"> </span>expenses<span style="letter-spacing:1.05pt"> </span>will<span style="letter-spacing:.9pt"> </span>“flow<span style="letter-spacing:1.0pt"> </span>through”<span style="letter-spacing:1.05pt"> </span>to the<span style="letter-spacing:.85pt"> </span>Shareholders,<span style="letter-spacing:1.3pt"> </span>and<span style="letter-spacing:.9pt"> </span>the Administrator<span style="letter-spacing:1.3pt"> </span>reports<span style="letter-spacing:1.0pt"> </span>these<span style="letter-spacing:.95pt"> </span>to the<span style="letter-spacing:.85pt"> </span>Internal<span style="letter-spacing: 2.0pt"> </span>Revenue Service on that basis.</div><div> </div><div> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026 and 2025, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. March 31, 2026 and 2025 tax years remain open for examination. There were no examinations in progress at period end.</div><div style="text-indent: -38.6pt; padding-left: 54pt;"> <p> </p><div style="float: left; width: 38.6pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.7.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Creation and Redemption of Shares</span> </div> </div><div style="clear: both;">  </div><div> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. </div><div>  </div><div> For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of ether represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the ether represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of ether has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Ether Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div>  </div><div> The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive ether as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving ether as part of the creation or redemption process. The Fund will create Shares by receiving ether from a third-party that is not the Authorized Participant and the Fund --not the Authorized Participant --is responsible for selecting the third-party to deliver the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the ether to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the ether to the Fund. The Fund will redeem shares by delivering ether to a third-party that is not the Authorized Participant and the Fund --not the Authorized Participant --is responsible for selecting the third-party to receive the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the ether from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the ether from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. </div><div>  </div><div> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of ether and the trading price of the Shares on the Cboe BZX Exchange at the time of the offer. Shares offered at different times may have different offering prices. </div><div>  </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the year from April 1, 2025 to March 31, 2026 are as follows: </div><div style="text-align: justify; margin-left: 4.5pt;">  </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td> <td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Shares</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td> <td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="text-decoration-thickness: initial; float: none; display: inline !important;">Amount<span style="font-size: .83em; vertical-align: super;">#</span></span></span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">1,550,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,850,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Redemption of Shares</span></td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; text-align: left; border-bottom: 2px solid black; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; border-bottom: 2px solid black; width: 9%;">(1,750,000</td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; text-align: left; border-bottom: 2px solid transparent; width: 1%;">)</td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; text-align: left; border-bottom: 2px solid black; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; border-bottom: 2px solid black; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor; width: 1%; text-align: left;">)</td> </tr> <tr style="vertical-align: top; height: 1pt;"> <td style="vertical-align: bottom;"> <div> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">2,650,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">67,559,123</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div style="text-align: justify;">  </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025 are as follows: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Shares</span></td> <td style="vertical-align: bottom; text-align: left;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse;"> </td><td colspan="2" style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount<sup>#</sup></span></td> <td style="vertical-align: bottom; text-align: center;"> </td> </tr><tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">100,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,620,289</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> <span style="letter-spacing: normal; text-align: start; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">^</span></td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom; text-align: left;"> <div> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">1,750,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,550,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> # </div> <div> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs <span style="letter-spacing: normal; text-align: center; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units.</span></div></div> <div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.1.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Basis of Presentation</span> </div> </div><div> The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div> The financial statements are presented for the Fund, which is the sole series of the Trust. Financial statements for the Trust, as the registrant, combined with the Fund are provided separately in this report. For the periods presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the the Fund, which is the sole series of the Trust. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. Combined financial statements for the Trust, as registrant, and the Fund are presented separately within this report. </div> <div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.2.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Calculation of NAV and NAV per Share</span> </div> </div><div> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the ether held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the index is unreliable. The CME CF Ether-Dollar Reference Rate – New York Variant for the Ether – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the ether held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the Cboe BZX Exchange is closed for regular trading. The Trust’s periodic financial statements may not utilize this net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP. </div> <div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.3.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Valuation of Ether</span> </div> </div><div> The Fund’s financial statements are prepared in accordance with GAAP for annual financial information. Ether is priced at 11:59:59PM ET. With respect to the Fund’s ether holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for ether as of the Fund’s financial statement measurement date. </div><div> ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: </div><div> Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; </div><div> 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 </div><div> Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. </div><div>As of March 31, 2026 and March 31, 2025, the value of the ether held by the Fund was categorized as Level 1. </div> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.4.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Fees, Expenses, and Realized Gains (Losses</span><span style="color: rgb(32, 37, 41);">)</span> </div><div> The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: the fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and Ether Custodian, collectively) and the Trustee, Cboe BZX Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs. Ether transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of ether are determined on a specific identification basis and recognized in the Statements of Operations in the period in which the sale or disposition occurs, respectively. </div><div> The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Fund will sell ether as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any Ethereum network fees or other similar transaction fees, in connection with any sales of ether necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any Ethereum network fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period from July 23, 2024 (the day the Shares were initially listed on the Exchange) to January 31, 2025, the Sponsor agreed to waive the entire Sponsor’s Fee on the first $10.0 billion of the Fund’s assets. For the year ended March 31, 2026, the Fund accrued the Sponsor’s Fee of $108,260. </div><div> The Sponsor is not required to pay any extraordinary or non-routine expenses. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, Ethereum network fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the Ethereum blockchain, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, Ether Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. The Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee, or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. Because the Fund does not have any income, it will need to sell ether to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of ether held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell ether to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of ether represented by each Share. </div><div> There have been no extraordinary or non-routine expenses during the periods presented. </div> 500000 0.0019 0.0019 10000000000 108260 500000 500000 0 <div style="text-indent: -14.25pt; padding-left: 29.65pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> 2.5. </div> <div> <span style="text-decoration: underline;">Ether Receivable and Payable</span> </div> </div><div> Ether receivable or payable represents the quantity of Ether covered by contractually binding orders for the creation or redemption of Shares respectively, where the Ether has not yet been transferred to or from the Fund's account. Generally, ownership of the Ether is transferred within one business day of the trade date. </div> P1D <div style="text-indent: -14.45pt; padding-left: 29.85pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.6.</span> </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Income Taxes</span> </div> </div><div style="margin: 0in;">The<span style="letter-spacing:.55pt"> </span>Fund<span style="letter-spacing:.6pt"> </span>is<span style="letter-spacing:.45pt"> </span>classified<span style="letter-spacing:.7pt"> </span>as<span style="letter-spacing:.45pt"> </span>a<span style="letter-spacing:.45pt"> </span>“grantor<span style="letter-spacing:.65pt"> </span>trust”<span style="letter-spacing:.6pt"> </span>for<span style="letter-spacing:.5pt"> </span>United<span style="letter-spacing:.6pt"> </span>States<span style="letter-spacing:.6pt"> </span>federal<span style="letter-spacing:.6pt"> </span>income<span style="letter-spacing:.65pt"> </span>tax<span style="letter-spacing:.5pt"> </span>purposes. As<span style="letter-spacing:.5pt"> </span>a<span style="letter-spacing:.45pt"> </span>result,<span style="letter-spacing:.6pt"> </span>the Trust<span style="letter-spacing:.6pt"> </span>and<span style="letter-spacing:.6pt"> </span>the<span style="letter-spacing:.6pt"> </span>Fund<span style="letter-spacing:.6pt"> </span>are<span style="letter-spacing:.6pt"> </span>not<span style="letter-spacing:.7pt"> </span>subject<span style="letter-spacing:.6pt"> </span>to<span style="letter-spacing:.45pt"> </span>United<span style="letter-spacing:.6pt"> </span>States federal<span style="letter-spacing: 2.0pt"> </span>income<span style="letter-spacing:1.05pt"> </span>tax.<span style="letter-spacing:.9pt"> </span>Instead,<span style="letter-spacing:1.05pt"> </span>the<span style="letter-spacing:.85pt"> </span>Fund’s<span style="letter-spacing:1.0pt"> </span>income,<span style="letter-spacing:1.05pt"> </span>gain,<span style="letter-spacing:1.0pt"> </span>losses,<span style="letter-spacing:.95pt"> </span>and<span style="letter-spacing:.9pt"> </span>expenses<span style="letter-spacing:1.05pt"> </span>will<span style="letter-spacing:.9pt"> </span>“flow<span style="letter-spacing:1.0pt"> </span>through”<span style="letter-spacing:1.05pt"> </span>to the<span style="letter-spacing:.85pt"> </span>Shareholders,<span style="letter-spacing:1.3pt"> </span>and<span style="letter-spacing:.9pt"> </span>the Administrator<span style="letter-spacing:1.3pt"> </span>reports<span style="letter-spacing:1.0pt"> </span>these<span style="letter-spacing:.95pt"> </span>to the<span style="letter-spacing:.85pt"> </span>Internal<span style="letter-spacing: 2.0pt"> </span>Revenue Service on that basis.</div><div> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026 and 2025, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. March 31, 2026 and 2025 tax years remain open for examination. There were no examinations in progress at period end.</div> <div style="float: left; width: 38.6pt; white-space: nowrap;"> <span style="color: rgb(32, 37, 41);">2.7.</span> </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">Creation and Redemption of Shares</span> </div><div> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of cash as determined by the Administrator on each day that Cboe BZX Exchange is open for regular trading. </div><div> For creation transactions, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of ether represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions, the Sponsor will arrange for the ether represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of ether has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the Ether Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div> The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive ether as part of the creation or redemption process or otherwise direct the Fund or a third-party with respect to purchasing, holding, delivering, or receiving ether as part of the creation or redemption process. The Fund will create Shares by receiving ether from a third-party that is not the Authorized Participant and the Fund --not the Authorized Participant --is responsible for selecting the third-party to deliver the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the ether to the Fund or acting at the direction of the Authorized Participant with respect to the delivery of the ether to the Fund. The Fund will redeem shares by delivering ether to a third-party that is not the Authorized Participant and the Fund --not the Authorized Participant --is responsible for selecting the third-party to receive the ether. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the ether from the Fund or acting at the direction of the Authorized Participant with respect to the receipt of the ether from the Fund. The third-party will be unaffiliated with the Fund and the Sponsor. </div><div> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of ether and the trading price of the Shares on the Cboe BZX Exchange at the time of the offer. Shares offered at different times may have different offering prices. </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the year from April 1, 2025 to March 31, 2026 are as follows: </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td> <td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Shares</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td> <td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="text-decoration-thickness: initial; float: none; display: inline !important;">Amount<span style="font-size: .83em; vertical-align: super;">#</span></span></span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">1,550,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,850,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Redemption of Shares</span></td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; text-align: left; border-bottom: 2px solid black; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; border-bottom: 2px solid black; width: 9%;">(1,750,000</td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; text-align: left; border-bottom: 2px solid transparent; width: 1%;">)</td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; text-align: left; border-bottom: 2px solid black; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; border-bottom: 2px solid black; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor; width: 1%; text-align: left;">)</td> </tr> <tr style="vertical-align: top; height: 1pt;"> <td style="vertical-align: bottom;"> <div> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">2,650,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">67,559,123</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025 are as follows: </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Shares</span></td> <td style="vertical-align: bottom; text-align: left;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse;"> </td><td colspan="2" style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount<sup>#</sup></span></td> <td style="vertical-align: bottom; text-align: center;"> </td> </tr><tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">100,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,620,289</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> <span style="letter-spacing: normal; text-align: start; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">^</span></td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom; text-align: left;"> <div> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">1,750,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,550,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> # </div> <div> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs <span style="letter-spacing: normal; text-align: center; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units.</span></div></div> <div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the year from April 1, 2025 to March 31, 2026 are as follows: </div><div style="text-align: justify; margin-left: 4.5pt;">  </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td> <td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Shares</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: center;"> </td> <td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="text-decoration-thickness: initial; float: none; display: inline !important;">Amount<span style="font-size: .83em; vertical-align: super;">#</span></span></span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">1,550,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,850,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Redemption of Shares</span></td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; text-align: left; border-bottom: 2px solid black; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; border-bottom: 2px solid black; width: 9%;">(1,750,000</td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; text-align: left; border-bottom: 2px solid transparent; width: 1%;">)</td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; text-align: left; border-bottom: 2px solid black; width: 1%;"> </td> <td style="vertical-align: bottom; text-align: right; border-bottom: 2px solid black; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor; width: 1%; text-align: left;">)</td> </tr> <tr style="vertical-align: top; height: 1pt;"> <td style="vertical-align: bottom;"> <div> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">2,650,000</td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">67,559,123</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div style="text-align: justify;">  </div><div style="text-align : justify; margin-left : 0pt; "> Changes in the Shares for the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025 are as follows: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Shares</span></td> <td style="vertical-align: bottom; text-align: left;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse;"> </td><td colspan="2" style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount<sup>#</sup></span></td> <td style="vertical-align: bottom; text-align: center;"> </td> </tr><tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">100,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,620,289</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> <span style="letter-spacing: normal; text-align: start; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">^</span></td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom; text-align: left;"> <div> Creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">1,750,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,550,000</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">38,847,498</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> # </div> <div> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs <span style="letter-spacing: normal; text-align: center; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units.</span></div></div> 1550000 38847498 2850000 75689578 1750000 46977953 2650000 67559123 100000 2620289 1750000 42553442 300000 6326233 1550000 38847498 4000 25 100000 100000 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -38.6pt; padding-left: 54pt;"> <div style="float: left; width: 38.6pt; white-space: nowrap;"> 3. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">INVESTMENT IN ETHER</span> </div> </div><div style="clear: both;">  </div><div> The following represents the changes in quantity of ether held and the respective fair value during the year from April 1, 2025 to March 31, 2026: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <span style="font-weight: bold;">Quantity of ether</span> </td> <td style="vertical-align: bottom; width: 1%;"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"><br/></td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount in US$</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">11,780.2062</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">21,636.6183</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(13,282.9028</td> <td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(38.4611</td> <td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(110,406</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,746,623</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;"> </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">(10,724,721</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">20,095.4606</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">42,237,443</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div>The following represents the changes in quantity of ether held and the respective fair value during the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025:</div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <span style="font-weight: bold;">Quantity of ether</span> </td> <td style="vertical-align: bottom; width: 1%;"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"><br/></td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount in US$</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">760.0000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,621,065</td><td style="vertical-align: bottom; text-align: left; width: 1%;">^</td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">13,300.0000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(2,279.7938</td> <td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(995,550</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;"> </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">(16,238,402</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">11,780.2062</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> <div> The following represents the changes in quantity of ether held and the respective fair value during the year from April 1, 2025 to March 31, 2026: </div><div>  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <span style="font-weight: bold;">Quantity of ether</span> </td> <td style="vertical-align: bottom; width: 1%;"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"><br/></td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount in US$</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at April 1, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">11,780.2062</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">21,636.6183</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">75,689,578</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(13,282.9028</td> <td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(46,977,953</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(38.4611</td> <td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(110,406</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,746,623</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;"> </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">(10,724,721</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div> Balance at March 31, 2026 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">20,095.4606</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">42,237,443</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div>The following represents the changes in quantity of ether held and the respective fair value during the period from July 23, 2024 (Date of commencement of operations) to March 31, 2025:</div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td><td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td colspan="2" style="vertical-align: bottom; text-align: center; border-color: currentcolor currentcolor rgb(0, 0, 0); white-space: nowrap; border-width: medium medium 2px; border-style: none none solid;"> <span style="font-weight: bold;">Quantity of ether</span> </td> <td style="vertical-align: bottom; width: 1%;"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"><br/></td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center; width: 1%;"> <span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Amount in US$</span></td><td style="border-width: medium; border-style: none; border-color: currentcolor; vertical-align: bottom; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Balance at July 23, 2024 (Date of commencement of operations) </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">760.0000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%;">2,621,065</td><td style="vertical-align: bottom; text-align: left; width: 1%;">^</td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Ether purchased for the creation of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">13,300.0000</td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">42,553,442</td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Ether sold for the redemption of Shares </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(2,279.7938</td> <td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(6,326,233</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Principal on ether sales to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td><td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div> Net realized gain (loss) from ether sold for the redemption of shares and sold to pay expenses </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%;"> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%;">(995,550</td><td style="vertical-align: bottom; text-align: left; width: 1%;">) </td> </tr> <tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> Net change in unrealized appreciation (depreciation) on investments in ether </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">  - </td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;"> </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">(16,238,402</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 2px solid transparent;">) </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> <div> Balance at March 31, 2025 </div> </td> <td style="vertical-align: bottom; text-align: right;"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">11,780.2062</td> <td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> <td style="vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 4px double transparent;"> </td><td style="vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 4px double black;">21,614,322</td><td style="vertical-align: bottom; text-align: left; width: 1%; border-bottom: 4px double transparent;"> </td> </tr> </table><div>  </div><div style="font-size: 10pt;"> <div style="float: left; width: 36.0pt; white-space: nowrap;"> ^ </div> <div> On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. </div> </div> 11780.2062 21614322 21636.6183 75689578 13282.9028 46977953 -38.4611 110406 2746623 -10724721 20095.4606 42237443 760 2621065 13300 42553442 2279.7938 6326233 0 0 -995550 -16238402 11780.2062 21614322 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 4. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">RELATED PARTIES</span> </div> </div><div style="clear: both;">  </div><div> The Sponsor of the Trust is Franklin Holdings, LLC. The Sponsor is responsible for establishing the Trust and for the registration of the Shares. The Sponsor generally oversees the performance of the Fund’s principal service providers but does not exercise day-to-day oversight over such service providers. The Sponsor, with assistance and support from the Administrator, is responsible for preparing and filing periodic reports on behalf of the Trust and the Fund with the SEC and will provide any required certification for such reports. The Sponsor has designated the independent registered public accounting firm of the Trust on behalf of the Fund and may from time to time employ legal counsel for the Fund. </div><div>  </div><div> Franklin Distributors, LLC serves as the Marketing Agent of the Fund. The Sponsor and the Marketing Agent are affiliates, and each is considered to be a related party to the Trust and the Fund. Franklin Resources, Inc. (“FRI”) is the ultimate parent company of the Sponsor and the Marketing Agent. FRI is the holding company for various subsidiaries that together are referred to as Franklin Templeton. </div><div>  </div><div> The Sponsor is a related party of the Trust and the Fund. The Fund pays the Sponsor a unitary fee for services performed pursuant to the Sponsor Agreement. The Marketing Agent is an affiliate of the Sponsor. Expenses payable to the Marketing Agent, if any, are paid through the Sponsor’s fee. </div><div>  </div><div> The Trust also considers Franklin Resources, Inc., the ultimate parent company of the Sponsor, to be a related party of the Trust and the Fund. As of March 31, 2026, no shares of the Fund were held by a related party. </div> 0 <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 5. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">CONCENTRATION OF RISK</span> </div> </div><div style="margin-left: 23.65pt; clear: both;">  </div><div> The Fund holds only ether and cash, 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 Fund. 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 digital assets and blockchain technology industry; trading activity on digital asset platforms, which, in many cases, may be unregulated or subject to regulation by a relevant jurisdiction but potentially non-compliant with such regulations 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 digital asset platforms; and forks in the Ethereum network, among other things. </div> <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 6. </div><div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">FINANCIAL HIGHLIGHTS</span> </div> </div><div style="font-size: 10pt;"> </div><table cellpadding="0" style="margin-left: 0px; margin-right: 0px; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 2%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 2%;"> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top;"> <td> </td> <td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <div> <span style="font-weight: bold;">For the Year<br/>Ended<br/>March 31, 2026</span> </div> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td> <td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <div> <span style="font-weight: bold;">For the period July 23, 2024<br/> (Date of<br/></span> </div> <div> <span style="font-weight: bold;">commencement of<br/> operations) through March<br/> 31, 2025</span> </div> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td> </tr> <tr style="vertical-align: top; height: 11.25pt;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, beginning of year</span> </div> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">26.21</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net investment loss<sup>(b) </sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.04</td><td style="text-align: left; width: 2%;">) </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.01</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Net realized and unrealized gain (loss) on investment in ether<sup>(c)</sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.04</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.26</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;">) </td> </tr> <tr style="vertical-align: top;"> <td> <div> Net change in net assets from operations<sup> </sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.00</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.27</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, end of year</span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">15.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Total return, at net asset value<sup>(e)</sup></span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">14.35</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(46.81</td><td style="text-align: left; width: 2%; vertical-align: top;">)%<span style="font-size: .83em; vertical-align: super;">(d)</span></td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Ratio to average net assets</span> </div> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr> <td> <div> Net investment loss </div> </td> <td> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%;">(0.19</td><td style="text-align: left; width: 2%;">)%</td> <td> </td><td style="text-align: left; width: 1%;"></td><td style="width: 9%; text-align: right; white-space: nowrap; vertical-align: bottom;">(0.04</td><td style="text-align: left; white-space: nowrap; vertical-align: top; width: 2%;">)%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Gross expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: bottom; width: 9%; padding-left: 10px;">0.04</td><td style="text-align: left; white-space: nowrap; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> </table><div>  </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (a) </div> <div> The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial ether seed creation transaction conducted on June 27, 2024. Prior to June 27, 2024, 4,000 shares were acquired on May 21, 2024 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (b) </div> <div> Calculated using average Shares outstanding </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (c) </div> <div> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investment for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (d) </div> <div> Percentage is not annualized. </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (e) </div> <div> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (f) </div> <div> Annualized. </div> </div> <table cellpadding="0" style="margin-left: 0px; margin-right: 0px; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 2%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 2%;"> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top;"> <td> </td> <td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <div> <span style="font-weight: bold;">For the Year<br/>Ended<br/>March 31, 2026</span> </div> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td> <td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);"> <div> <span style="font-weight: bold;">For the period July 23, 2024<br/> (Date of<br/></span> </div> <div> <span style="font-weight: bold;">commencement of<br/> operations) through March<br/> 31, 2025</span> </div> </td><td style="vertical-align: bottom; text-align: center; white-space: nowrap;"> </td> </tr> <tr style="vertical-align: top; height: 11.25pt;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, beginning of year</span> </div> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right; width: 1%;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">26.21</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net investment loss<sup>(b) </sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.04</td><td style="text-align: left; width: 2%;">) </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(0.01</td><td style="text-align: left; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Net realized and unrealized gain (loss) on investment in ether<sup>(c)</sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.04</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.26</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;">) </td> </tr> <tr style="vertical-align: top;"> <td> <div> Net change in net assets from operations<sup> </sup></div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">2.00</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td><td style="text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">(12.27</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;">) </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Net asset value per Share, end of year</span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">15.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> <td style="text-align: right;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;">$</td><td style="text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; padding-left: 10px;">13.94</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 2%;"> </td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Total return, at net asset value<sup>(e)</sup></span> </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">14.35</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%; padding-left: 10px;">(46.81</td><td style="text-align: left; width: 2%; vertical-align: top;">)%<span style="font-size: .83em; vertical-align: super;">(d)</span></td> </tr> <tr style="vertical-align: top;"> <td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> <span style="font-weight: bold;">Ratio to average net assets</span> </div> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> <td> </td><td> </td><td style="padding-left: 10px;"> </td><td> </td> </tr> <tr> <td> <div> Net investment loss </div> </td> <td> </td><td style="text-align: left; width: 1%;"> </td><td style="text-align: right; width: 9%;">(0.19</td><td style="text-align: left; width: 2%;">)%</td> <td> </td><td style="text-align: left; width: 1%;"></td><td style="width: 9%; text-align: right; white-space: nowrap; vertical-align: bottom;">(0.04</td><td style="text-align: left; white-space: nowrap; vertical-align: top; width: 2%;">)%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td> <div> Gross expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: middle; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> <tr style="vertical-align: top;"> <td> <div> Net expenses </div> </td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; width: 9%; padding-left: 10px;">0.19</td><td style="text-align: left; width: 2%;">%</td> <td style="text-align: right;"> </td><td style="text-align: left; width: 1%;"></td><td style="text-align: right; vertical-align: bottom; width: 9%; padding-left: 10px;">0.04</td><td style="text-align: left; white-space: nowrap; vertical-align: top; width: 2%;">%<span style="font-size: .83em; vertical-align: super;">(f)</span></td> </tr> </table><div>  </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (a) </div> <div> The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial ether seed creation transaction conducted on June 27, 2024. Prior to June 27, 2024, 4,000 shares were acquired on May 21, 2024 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (b) </div> <div> Calculated using average Shares outstanding </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (c) </div> <div> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investment for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (d) </div> <div> Percentage is not annualized. </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (e) </div> <div> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div><div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> (f) </div> <div> Annualized. </div> </div> 13.94 26.21 -0.04 -0.01 2.04 -12.26 2 -12.27 15.94 13.94 0.1435 -0.4681 -0.0019 -0.0004 0.0019 0.0019 0.0019 0.0004 4000 25 100000 100000 2 100000 380 0.0076 760 760 3446.37 2619241.2 760 <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 7. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">COMMITMENTS AND CONTINGENCIES</span> </div> </div><div style="clear: both;">  </div><div> In the normal course of business, the Trust, on behalf of the Fund, may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. </div> <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 8. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">INDEMNIFICATION</span> </div> </div><div style="clear: both;">  </div><div> Under the Trust’s organizational documents, the Sponsor and its shareholders, members, directors, affiliates, officers, employees and subsidiaries are indemnified by the Trust against certain liabilities. The Fund has also agreed to indemnify certain of its other service providers, including the Administrator, the Marketing Agent, the Custodians and the Trustee (including its officers, affiliates, directors, employees, and agents), for certain liabilities incurred by such parties in connection with their respective agreements to provide services for the Fund. </div><div>  </div><div> The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any ether or other assets of the Fund or the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. </div><div>  </div><div> The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. </div><div>The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. </div> <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 9. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">OPERATING SEGMENTS</span> </div> </div><div style="clear: both;">  </div><div> The Fund, which is the sole series of the Trust, and the Trust operate as a <span style="-sec-ix-hidden: hidden-fact-9">single</span> operating segment, which is an investment portfolio. Executive officers of the Fund’s Sponsor perform the functions of the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements. </div><div>  </div><div> For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Statements of Assets and Liabilities and the Statements of Operations, along with the related Notes to Financial Statements. The Schedules of Investments provide details of the Fund’s investments that generate returns such as realized and unrealized gains or losses. Performance metrics and expense ratios are disclosed in the Financial Highlights. </div> <div style="text-indent: -38.65pt; padding-left: 54pt;"> <div style="float: left; width: 38.65pt; white-space: nowrap;"> 10. </div> <div> <span style="color: rgb(32, 37, 41); text-decoration: underline;">SUBSEQUENT EVENTS</span> </div> </div><div style="clear: both;">  </div><div> The Trust and the Fund have evaluated subsequent events through the issuance of the financial statements and determined that no such events have occurred that require disclosure. </div> http://fasb.org/us-gaap/2025#RelatedPartyMember http://fasb.org/us-gaap/2025#RelatedPartyMember http://fasb.org/us-gaap/2025#RelatedPartyMember http://fasb.org/us-gaap/2025#RelatedPartyMember 1 1 0002011535 false FY Unlimited Unlimited Unlimited Unlimited Cost of investments in ether: $69,199,790 at March 31, 2026 and $37,851,948 at March 31, 2025. No par value, unlimited amount authorized. Net increase (decrease) in net Assets per Share based on average shares outstanding during the period. The change in Financial highlights may not agree with Net increase (decrease) in net assets per Share because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial ether seed creation transaction conducted on June 27, 2024. Prior to June 27, 2024, 4,000 shares were acquired on May 21, 2024 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Calculated using average Shares outstanding The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investment for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. Percentage is not annualized. Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. Annualized. Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. On May 21, 2024, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on May 21, 2024. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. The amount shown represents the NAV per share at commencement of the Fund’s investment operations. This amount includes proceeds to the Fund from the initial ether seed creation transaction conducted on June 27, 2024. Prior to June 27, 2024, 4,000 shares were acquired on May 21, 2024 at per share value of $25. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On June 27, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 380 ether per Creation Unit (or 0.0076 ether per Share), for a total of 760 ether (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 760 ether at the price of $3,446.37 per ether on June 27, 2024 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to ether, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,619,241.20 (an amount representing 760 ether). Calculated using average Shares outstanding The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investment for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. Percentage is not annualized. Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. Annualized.