CETH builds on the Company’s mission to make crypto assets more accessible, straightforward for investors, and serves as a testament to the asset class’s global momentum
NEW YORK, July 23, 2024 – 21Shares US LLC ("21Shares"), an affiliate of 21Shares AG, one of the world’s largest issuers of crypto exchange traded funds (ETFs), today announced the launch of the 21Shares Core Ethereum ETF (CETH). CETH is not a fund registered under the Investment Company Act of 1940, as amended (“1940 Act”), and is not subject to regulation under the 1940 Act, unlike most exchange traded products or ETFs. CETH is subject to significant risk and heightened volatility. The fund is not suitable for all investors.
With a total expense ratio (TER) of 0.21%, CETH’s investment objective is to seek to track the performance of Ether (ETH), the second-largest crypto asset by market capitalization. In addition, CETH represents 21Shares’ latest addition to its growing lineup of US products and underscores the firm’s growth and commitment to the US market.
Ethereum is a decentralized smart-contract platform that revolutionized the world of blockchain. ETH, the native crypto asset of the network, is the fuel that allows Ethereum to operate in the same way that we use oil to propel vehicles, heat buildings, and produce electricity in the physical world. Much like Bitcoin, Ethereum is a peer-to-peer network where transactions are recorded in a publicly available, decentralized ledger. What’s different about Ethereum is that it launched out of Bitcoin’s initial limitation as a simple settlement layer where people send and receive coins. From the start, Ethereum positioned itself as the infrastructure for building applications similar to websites or mobile applications on top of a fully decentralized internet. In other words, Ethereum provides a globally permissionless app store and a platform for Web3 – a new iteration of the world wide web – innovation.
Since 2018, 21Shares has pioneered the innovation of crypto asset exchange traded products (ETPs) globally, with listings on some of the biggest, most-liquid securities exchanges around the world, including London Stock Exchange, Nasdaq OMX, Euronext Paris and Amsterdam, Deutsche Börse Xetra, and SIX Swiss Exchange. This allows investors to gain exposure to crypto through their existing bank or brokerage, removes complexity around tax reporting, and offers investors better custody and operational risk management than holding physical crypto.
"21Shares is at the forefront of a financial revolution, as investor demand for crypto asset ETF continues to ramp up in lock-step with evolving regulatory frameworks around the world. Our mission – to make crypto assets more accessible to investors, and to bridge the gap between traditional finance and decentralized finance – is now more attainable than ever. There is a growing acceptance that crypto is here to stay and will play a role in the evolution of the financial system,” said Ophelia Snyder, Co-founder and President of 21Shares.
Snyder continued, “While Bitcoin is often classified closely with commodities, Ethereum presents a unique investment case. As a platform that fuels innovation and powers the next generation of the internet, Ethereum aligns more closely with technology investments, marking an exciting potential opportunity for investors. CETH, as the latest addition to 21Shares’ growing US product lineup, represents an important step for crypto asset accessibility to US investors and we’re thrilled to bring this product to the US market.”
CETH is 21Shares’ seventh product in the US and underscores 21Shares’ continued growth in the US market, which now includes over $3.2bn in assets under management and nearly 50 full-time employees.
Since its inception, 21Shares has a track record of advancing innovative crypto asset products, creating a bridge for investors between traditional finance and decentralized finance, and has demonstrated operational and client service excellence with a focus on transparency, risk management, and sustainability.
Press Contact:
21Shares: Audrey Belloff, audrey.belloff@21.co
About 21Shares US LLC
21Shares US LLC serves as the sponsor to the the 21Shares Core Ethereum ETF. 21Shares US LLC is an affiliate of 21Shares AG, one of the world’s leaders in providing access to crypto through TradFi and DeFi. 21Shares AG issues cryptocurrency-backed exchange traded products (ETPs) outside the United States in a number of global markets. 21Shares AG’s ETPs are built on its proprietary operating system, Onyx, which is also available to third parties. For more information, please visit www.21Shares.com/en-US.
Important Information
Investing involves risk, including the possible loss of principal. There is no assurance that the Trust will generate a profit for investors. The Trust may not be suitable for all investors.
The Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Trusts focusing on a single asset generally experience greater volatility. There are special risks associated with short selling and margin investing. Please ask your financial advisor for more information about these risks.
Ether is a relatively new asset class, and the market for ether is subject to rapid changes and uncertainty. Ether is largely unregulated and ethereum investments may be more susceptible to fraud and manipulation than more regulated investments. Ether is subject to unique and substantial risks, including significant price volatility and lack of liquidity, and theft. The value of an investment in the Trust could decline significantly and without warning, including to zero.
Ether is subject to rapid price swings, including as a result of actions and statements by influencers and the media, changes in the supply of and demand for ether, and other factors. There is no assurance that ether will maintain its value over the long-term.
Failure by the Trust’s Ether Custodian to exercise due care in the safekeeping of the Trust’s ether could result in a loss to the Trust. Shareholders cannot be assured that the Ether Custodian will maintain adequate insurance with respect to the ether held by the custodian on behalf of the Trust.
The Trust is not actively managed and will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of ethereum.
An investment in the Trust is not a direct investment in ethereum. Investors will also forgo certain rights conferred by owning ethereum directly.
Shares of the Trust are generally bought and sold at market price (not NAV) and are not individually redeemed from the Trust. Only Authorized Participants may trade directly with the Trust and only large blocks of Shares called “creation units.” Your brokerage commissions will reduce returns.
Shares in the Trust are not FDIC insured and may lose value and have no bank guarantee.
This material must be accompanied or preceded by a prospectus (link to the prospectus once live). Carefully consider the Trust’s investment objectives, risk factors, and fees and expenses before investing. For further discussion of the risks associated with an investment in the Trust please read the Trust’s prospectus.
The Marketing Agent is Foreside Global Services, LLC.
21Shares US LLC is the Sponsor to the Trust.
21Shares is not affiliated with Foreside Global Services, LLC.
© 2024. 21Shares US LLC. No part of this material may be reproduced in any form, or referred to in any other publication, without written permission.
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