4. Distributions to Shareholders

The Trust makes periodic cash distributions to shareholders from the net proceeds of staking rewards (the “Distribution Rewards Amount”), which represent gross staking rewards generated under the Staking Arrangements, net of the Sponsor’s Staking Portion, the Custodian’s fee, the Staking Provider’s share and the Sponsor’s Fee. The Sponsor engages a Liquidity Provider to convert such amounts into U.S. dollars by reference to the Index Price at such time, with the net proceeds distributed to shareholders. Distributions are made pursuant to the Sponsor’s staking policy, and the timing and amount of any such distributions are subject to the Sponsor’s discretion and applicable requirements under the Trust Agreement.

During the six months ended June 30, 2026, the Trust made cash distributions to shareholders derived from a portion of the Ether received as staking rewards from the Trust’s staking activities, including $9,397,326, or $0.083178 per Share, on January 6, 2026, $2,750,310, or $0.025709 per Share, on February 4, 2026, $2,242,052, or $0.021011 per Share, on March 4, 2026, $2,390,145, or $0.022794 per Share, on April 8, 2026, $2,470,197, or $0.024577 per Share, on May 6, 2026, and $1,900,050, or $0.019508 per Share, on June 4, 2026 for aggregate distributions of $21,150,080, or $0.196777 per Share. The distributions reduced the Trust’s Ether holdings through the sale of Ether to generate cash.