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Grayscale Ethereum Classic Trust (ETC) SEC 10-Q Report

2 min czytania

Grayscale Ethereum Classic Trust (ETC), a passive investment vehicle managed by Grayscale Investments, LLC, has released its Form 10-Q report for the first quarter of 2025. The Trust, which holds Ethereum Classic (ETC) and issues shares in exchange for ETC, aims for the value of its shares to reflect the value of the ETC it holds, minus expenses and liabilities. The report provides a detailed overview of the Trust's financial performance and operational highlights for the period ending March 31, 2025.

Financial Highlights

  • Net realized and unrealized (loss) gain on investment in ETC: The Trust reported a net realized and unrealized loss of ($93,030) thousand, primarily driven by the depreciation in the price of ETC from $25.13 per ETC as of December 31, 2024, to $16.84 per ETC as of March 31, 2025.
  • Net (decrease) increase in net assets resulting from operations: The Trust experienced a net decrease of ($94,541) thousand, which includes the net realized and unrealized loss on investment in ETC and the Sponsor’s Fee of $1,511 thousand.
  • Net assets: As of March 31, 2025, the Trust's net assets stood at $188,514 thousand, marking a 33% decrease for the three-month period due to ETC price depreciation and the withdrawal of approximately 69,222 ETC to pay the Sponsor’s Fee.
  • Principal Market NAV per Share: The NAV per share was $13.47 as of March 31, 2025, reflecting the decrease in ETC price.

Business Highlights

  • Trust Overview: The Grayscale Ethereum Classic Trust (ETC) is a passive investment vehicle managed by the Sponsor, holding Ethereum Classic (ETC) and issuing shares in exchange for ETC. The Trust aims for the value of its shares to reflect the value of the ETC it holds, minus expenses and liabilities. However, shares have traded at premiums and discounts to this value.
  • Reorganization Impact: On January 1, 2025, Grayscale Investments, LLC underwent a reorganization, merging with Grayscale Operating, LLC, which then assigned its sponsor contracts to Grayscale Investments Sponsors, LLC. This reorganization is not expected to materially impact the Trust's operations.
  • Investment Transactions: The Trust records investment transactions on a trade date basis, with changes in fair value reflected as net changes in unrealized appreciation or depreciation. Realized gains and losses are recognized in connection with transactions, including settling obligations for the Sponsor’s Fee in ETC.
  • Principal Market Determination: The Trust determines its principal market annually and conducts quarterly analyses to ensure the selected market remains the most advantageous for calculating the Trust's net asset value.
  • ETC Price Movements: The Trust's net realized and unrealized loss on investment in ETC for Q1 2025 was driven by a price depreciation from $25.13 per ETC at the end of 2024 to $16.84 per ETC by March 31, 2025.
  • Cash Resources and Liquidity: The Trust does not hold cash or cash equivalents, as it sells ETC to pay expenses. The Sponsor assumes most expenses, with the Sponsor’s Fee being the only ordinary expense.
  • Future Outlook: The Trust may consider operating a redemption program in the future, subject to regulatory approval and the Sponsor's discretion, although there is currently no intention to seek such approval.

SEC Filing: Grayscale Ethereum Classic Trust (ETC) [ ETCG ] - 10-Q - May. 02, 2025