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Global X Ethereum Trust Private Fund

Reasons to Consider

Ethereum Exposure

The Shares are designed as a convenient and cost-effective method for investors to gain investment exposure to Ethereum without making a direct investment in ether.

Long-Term Growth Potential

The Trust seeks to provide investment exposure to Ethereum. Ethereum is a decentralized, open-source blockchain with smart contract functionality.

Fund Summary

The investment objective of the Trust is for the Shares to realize long-term capital appreciation by tracking the price of ether using the Coin Metric Bletchley Index (CMBI) Ethereum Real-Time Reference Rate price index rate on each business day, less liabilities and expenses of the Trust. The Shares are designed as a convenient and investor friendly method for investors to gain investment exposure to Ethereum without making a direct investment in ether. Please contact your broker to learn more about applying for private placement in the Global X Ethereum Trust.

Key Information As of 10/02/23

Inception Date 11/17/22
Management Fee 0.65%
Net Assets $1.38 million
NAV $27.67
Minimum Subscription $10,000
Investor Qualifications new windowAccredited Investors
Subscription Frequency 1 Daily
Duration of Offering 2 Daily
Trust Taxation Grantor Trust; No K1

Service Providers As of 10/02/23

Auditors PwC
Custodian Coinbase Custody
Fund Administrator & Transfer Agent Bank of New York Mellon
Legal & Tax Counsel Morgan, Lewis & Bockius LLP
Index Provider Coin Metrics
Sponsor Global X Digital Assets, LLC

1 Investors may subscribe or redeem on a daily basis during the Offering Period or Redemption Period, respectively, which is scheduled to occur on an alternating monthly basis.

2 The Shares sold in the offering will be restricted securities under U.S. federal securities laws, and therefore such Shares will not be freely tradeable for a minimum of one year from the date of purchase. The Sponsor shall establish Offering Periods in its sole discretion. The Shares will be offered from time to time, currently contemplated to be commenced on a bi-monthly basis, with each Offering Period extending for a period less than one month, provided however, no Offering Period may commence less than five (5) Business Days after the completion of a Redemption Period. The Sponsor retains the right to discontinue an offering at its discretion.

Performance History As of month-end 09/30/23

Year-to-Date 1 Month 3 Months 6 Months Since Inception (1)
Fund 38.47% -4.10% -10.51% -8.27% 37.57%
CMBI Ethereum Index 38.54% 0.58% -10.25% -7.92% 38.71%

(1) As of 11/17/22

Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated.

Ethereum is a highly speculative asset that may encounter future regulatory changes that may adversely affect its value. Ethereum has experienced periods of extreme volatility. While its acceptance has grown significantly, the adoption of ethereum for the purpose of payment for goods and services has been limited.

High short-term performance is unusual, and investors should not expect similar performance in the future.

Investments in this Product is speculative and involves a high degree of risk, including a partial or total loss of principal and may not be suitable for every investor. The shares of the Fund are intended to reflect the price of the digital asset(s) held (based on digital asset(s) per share), less the Fund’s expenses and other liabilities. The Shares sold in the offering will be restricted securities under U.S. federal securities laws, and therefore such Shares will not be freely tradeable for a minimum of one year from the date of purchase.

The shares of this investment program are not registered under the Securities Act of 1933 (the “Securities Act”), the Securities Exchange Act of 1934 (except for Products that are SEC reporting companies), the Investment Company Act of 1940, or any state securities laws. The Products are offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act and are only available to accredited investors. As a result, the shares are restricted and subject to significant limitations on resales and transfers. Potential investors in this investment program should carefully consider the long-term and illiquid nature of an investment in that Product prior to making an investment decision.

Digital Asset Research

Ethereum: The Basics

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Theme Lab: Behind the Scenes of Bitcoin Mining

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Fund Documents

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.