Grayscale Ethereum Trust ETF (NYSE Arca:ETHE) has announced a corporate reorganization effective January 1, 2025, which involved an internal merger and the assignment of certain sponsor contracts. This reorganization is not expected to have a material impact on the Trust's operations.
On January 1, 2025, Grayscale Investments, LLC (GSI), the prior sponsor of the Grayscale Ethereum Trust ETF, merged with and into Grayscale Operating, LLC (GSO), with GSO as the surviving entity. As a result, GSO inherited all of GSI's rights and obligations, including those related to the Sponsor Contracts.
Concurrent with the merger, GSO assigned the Sponsor Contracts to Grayscale Investments Sponsors, LLC (GSIS), a subsidiary of GSO. This assignment includes agreements with Coinbase (NASDAQ:COIN), Inc., and Foreside Fund Services, LLC, ensuring that GSIS assumes all rights and obligations under these contracts.
Additionally, GSIS was admitted as an additional sponsor of the Trust under the Trust Agreement. On January 3, 2025, GSO voluntarily initiated its withdrawal as a sponsor of the Trust, which will become effective after a 120-day notice period. Following this period, GSIS will serve as the sole sponsor of the Trust.
This reorganization and the associated contractual assignments are detailed in the exhibits of the 8-K filing and are based on a press release statement. The Trust emphasizes that the reorganization will not alter the rights or obligations under any of the Sponsor Contracts, ensuring continuity for investors and stakeholders.
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