VanEck's Ethereum ETF (ETHV) is a passive investment vehicle that holds physical Ethereum (ETH) and gives investors exposure to ETH's price through a standard brokerage account. Each share represents a fractional ownership interest in the Trust's ETH holdings. The core value proposition is convenience: rather than managing crypto wallets, private keys, and custody risks directly, investors can buy and sell ETH exposure like a standard ETF on the Cboe BZX Exchange. Only Authorized Participants — registered broker-dealers including Jane Street, Virtu, Macquarie, and ABN AMRO — can create or redeem shares directly with the Trust in blocks of 25,000 shares, which keeps the share price close to net asset value through arbitrage. VanEck Digital Assets, the Sponsor, charges a 0.20% annual fee on average daily net assets, which is the all-in cost to investors and the Sponsor's primary revenue source. The Sponsor waived this fee on the first $1.5B of assets through July 2025 to attract early capital. Revenue scales with the Trust's NAV, which depends on both ETH inflows and ETH's price. ETH is held primarily in cold storage with Gemini Trust as primary custodian and Coinbase Custody as a secondary custodian. The Trust does not participate in ETH staking, meaning it generates no yield on its holdings beyond price appreciation.