Carefully consider the Product’s investment objectives, risk factors, fees and expenses before investing. This and other information can be found in the product’s private placement memorandum, which may be obtained from Global X Digital Assets, LLC. Read this and all related documents carefully before investing.
An application may be made for the Shares to be quoted on the OTCQX Best Market, an over-the-counter market operated by OTC Markets Group Inc. (the “OTCQX”). Nevertheless, there can be no assurance as to when, if ever, the Shares will be quoted on any market. Moreover, there can be no assurance that, if quoted, the Shares will trade with sufficient liquidity for the quotation to be of practical use to investors. Therefore, investors should be aware that they may be required to bear the financial risks of an investment in the Shares for an indefinite period of time.
Ethereum, like other digital assets, is an extremely new and nontraditional asset. Digital assets, represented on a decentralized public transaction ledger that is maintained by an open source protocol, are substantively different from traditional assets and investments. Digital assets have a relatively short history, which limits a potential Shareholder’s ability to evaluate the performance of Ethereum. The venues through which Ethereum trades are relatively new and may be more exposed to operational problems or failure than trading venues for other assets, which could adversely affect the value of Ethereum and therefore adversely affect an investment in the Shares. Ethereum trading venues may impose daily, weekly, monthly or customer-specific transaction or distribution limits or suspend withdrawals entirely, rendering the exchange of Ethereum for fiat currency difficult or impossible.
Flaws in the source code of the Ethereum network, or flaws in the underlying cryptography could leave the Ethereum network vulnerable to a multitude of attack vectors. If the source code or cryptography underlying Ethereum proves to be flawed or ineffective, malicious actors may be able to steal Ethereum held by others, which could negatively impact the demand for Ethereum and therefore adversely impact the price of Ethereum. Separate from the cybersecurity risks of the Ethereum protocol, entities that custody or facilitate the transfers or trading of Ethereum have been frequent and successful targets of cybersecurity attacks, leading to significant theft of Ethereum.
Ethereum transactions are irrevocable and stolen or incorrectly transferred Ethereum may be irretrievable. As a result, any incorrectly executed Ethereum transactions could adversely affect an investment in the Trust.
A disruption of the internet may affect the use of Ethereum and subsequently the value of the Shares. Ethereum is dependent upon the internet.
As Ethereum and the broader digital assets ecosystem has grown, it has begun to attract more regulatory attention around the globe. The future regulatory environment is uncertain and varies by country or even within countries. Failure to appropriately regulate the digital assets ecosystem could stifle innovation which could adversely impact the shares.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
The shares the Global X Ethereum Trust are not registered under the Securities Act of 1933 (the “Securities Act”), the Securities Exchange Act of 1934, the Investment Company Act of 1940, or any state securities laws. Pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act and is only available to accredited investors. As a result, the shares are restricted and subject to significant limitations on resales and transfers. Potential investors should carefully consider the long-term and illiquid nature of the investment prior to making an investment decision.
Marketing review services provided by Foreside Fund Services. Foreside is not affiliated with the other entities named in this communication.
THE Global X Ethereum Trust IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY COIN METRICS OR ANY OF ITS SUBSIDIARIES, AFFILIATES OR SERVICES PROVIDERS (COLLECTIVELY THE “INDEX PARTIES”). THE INDEX PARTIES MAKE NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE OWNERS OF THE Global X Ethereum Trust OR ANY MEMBER OF THE PUBLIC REGARDING THE ADVISABILITY OF INVESTING IN SECURITIES OR COMMODITIES GENERALLY OR IN THE Global X Ethereum Trust PARTICULARLY. THE INDEX PARTIES’ ONLY RELATIONSHIP TO THE Global X Ethereum Trust AND GLOBAL X DIGITAL ASSETS, LLC (THE “LICENSEE”) IS THE LICENSING OF THE INDEX AND INDEX RELATED DATA TO WHICH THE Global X Ethereum Trust REFERS. THE INDEX IS DETERMINED AND COMPOSED WITHOUT REGARD TO THE LICENSEE OR THE Global X Ethereum Trust. THE INDEX PARTIES HAVE NO OBLIGATION TO TAKE THE NEEDS OF THE LICENSEE OR THE OWNERS OF THE Global X Ethereum Trust INTO CONSIDERATION IN CONNECTION WITH THE FOREGOING. THE INDEX PARTIES ARE NOT RESPONSIBLE FOR AND HAVE NOT PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THE Global X Ethereum Trust TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY WHICH THE Global X Ethereum Trust IS TO BE CONVERTED INTO ANY CURRENCY. THE INDEX PARTIES HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR TRADING OF THE Global X Ethereum Trust.