Grayscale Investments® Declares Distribution of Rights to

STAMFORD, Conn., Sept. 16, 2022 (GLOBE NEWSWIRE) — Grayscale Inversions®the world’s largest digital currency asset manager and the sponsor (the “Sponsor”) of the Grayscale Ethereum Trust (OTCQX: ETHE) (the “Trust”), and administrator (the “Administrator”) of Grayscale Digital Large Cap Fund (OTCQX: GDLC) (the “Fund” and, together with the Trust, the “Products”), announced today that each of the Products has declared a distribution and set a record date for the distribution of the rights to the test tokens of ETH work (“ETHPoW”), which were received by each of the Products as a result of a hard fork in the Ethereum blockchain on September 15, 2022 following the so-called “Merge” update, to the registrants of each Product (“Record Date Shareholders”), as of the close of business on September 26, 2022 (the “Record Date”).

On the Record Date, in accordance with the terms of the Trust Agreement or LLC Agreement, as applicable, governing each Product, each Product will appoint Grayscale Investments, LLC as agent (the “Agent”) on behalf of the Shareholders of the Record Date of such Product and transfer the rights to the ETHPoW tokens held by such Product to the Agent on behalf of such Record Date Shareholders. The Agent, on behalf of the Record Date Shareholders of each Product, will seek to acquire the ETHPoW tokens as soon as possible after receiving the rights to the relevant Product and sell them for a period of time that is not currently expected. exceed 180 days.

The Agent may determine, in its sole discretion, whether, when and in what manner to sell the ETHPoW tokens it holds on behalf of the Record Date Shareholders of the applicable Product. In addition, the Agent may choose to relinquish the ETHPoW tokens it holds on behalf of the relevant Product.

If Agent is able to sell the ETHPoW tokens it holds on behalf of Shareholders on the applicable Product Registration Date, Agent will remit the cash proceeds from such sales, net of any reasonable administrative and other expenses incurred by Agent in its ability. as agent for such Record Date Shareholders and not in its capacity as Sponsor or Administrator of the Products, in proportion to such Record Date Shareholders, after the sales are completed. In this case, the Agent would later announce one or more dates for the shipment of said net cash proceeds.

The Agent reserves the right to remit the net cash proceeds from the sale of the corresponding ETHPoW tokens to the Record Date Shareholders of the corresponding Product on more than one occasion. The Agent may use an affiliated dealer, including Genesis Global Trading, Inc., to facilitate the sale of ETHPoW tokens. Any such affiliated distributor would be expected to earn a customary markup or other customary compensation for their services. In the event that the Agent may sell the ETHPoW tokens, there can be no guarantee of the price(s) of the ETHPoW tokens that may be realized, and the value of the ETHPoW tokens may rise or fall following any sale by the Agent. .

The Trust currently has rights to approximately 3,059,976.06309448 ETHPoW tokens, or approximately 0.00986585 ETHPoW tokens per share based on 310,158,500 shares of the Trust outstanding as of the date hereof, and expected to be outstanding as of the Record Date.

The Fund currently has rights to approximately 40,653.24325763 ETHPoW tokens, or approximately 0.00256206 ETHPoW tokens per share, based on 15,867,400 shares of the Fund outstanding as of the date hereof and expected to be outstanding. to the Registration Date.

Trading venues for ETHPoW tokens are not widely established given that the Ethereum Proof of Work Network was publicly launched on September 15, 2022, and there is uncertainty as to whether digital asset custodians will support ETHPoW tokens or whether trading markets will develop with a significant liquidity. . Should digital asset custodians support ETHPoW tokens and trading markets develop, ETHPoW token values ​​are expected to fluctuate widely for some time. As a result of this uncertainty and the potential for significant price volatility, it is not possible to predict the value of ETHPoW token entitlements, if any, that Agent may obtain from ETHPoW token sales after the Registration. Record Date Shareholders of each Product are advised to consult with their advisers regarding the tax consequences of the foregoing.

Shareholders of each Product should note that the Sponsor or Manager may not address future forks or airdrops on the Ethereum Network in the same manner as the ETHPoW fork. Sponsor and Manager intend to evaluate each future fork or airdrop on a case-by-case basis, in consultation with legal advisors, tax advisors and custodians of the Products.

Sponsor and Administrator will communicate important new information to the market and investors in the Products as it becomes available.

About Grayscale Investments®
Grayscale Investments® enables investors to access the digital economy through a family of safe, compatible and forward-thinking investment products. Founded in 2013, Grayscale has a proven track record and deep experience as the world’s largest digital currency asset manager. Investors, advisers and allocators turn to Grayscale’s private placements, public listings and ETFs for diversified, single-asset, thematic exposure. Grayscale products are distributed by Genesis Global Trading, Inc. (Member FINRA/SIPC, Registered MSRB) or Foreside Fund Services, LLC. For more information, follow @Grayscale or visit grayscale.com.

Press Contact

Jennifer Rosenthal
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