The CoinDesk Ether Benchmark Rate is designed to offer a real-time, volume-weighted fair value of Ether, taking into account various digital asset trading platforms. As of the announcement date, the platforms included in this benchmark are Binance, Bitstamp by Robinhood, Bullish, Bybit, Crypto.com, Gate, Gemini, HashKey, Kraken, LMAX Digital, and OKX. Grayscale believes that these platforms maintain compliance with applicable licensing requirements and adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations.
Prior to this change, the Trust's NAV was calculated using the CoinDesk Ether Price Index (ETX), which may not have adequately reflected the true market conditions. The new methodology aims to provide a more robust framework for valuation, thereby potentially increasing investor confidence and improving the Trust's market performance.
Grayscale's decision to adopt the CoinDesk Ether Benchmark Rate aligns with its commitment to transparency and operational excellence. The Trust's filings with the Securities and Exchange Commission (SEC) will reflect this change, with references to the "Index" now indicating the CoinDesk Ether Benchmark Rate for periods starting April 1, 2026, while prior periods will continue to reference the ETX.
This adjustment in valuation methodology is expected to have a positive impact on the Trust's performance, as it aims to provide a more accurate representation of Ether's market value. Investors and stakeholders are encouraged to review the Trust's upcoming reports for further details on this transition and its implications for the Trust's operations and performance.
