Grayscale Ethereum Covered Call ETF ETCO (Principal U.S. Listing Exchange: NYSE Arca, Inc.) Annual Shareholder Report | December 31, 2025
This annual shareholder report contains important information about the Grayscale Ethereum Covered Call ETF for the period of September 4, 2025 (commencement of operations), to December 31, 2025. You can find additional information about the Fund at https://etfs.grayscale.com/etco. You can also request this information by contacting us at 1-866-775-0131.
WHAT WERE THE FUND COSTS FOR THE PAST YEAR? (based on a hypothetical $10,000 investment)*
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment**
Fund Name
Grayscale Ethereum Covered Call ETF
$19
0.65%
* Costs included are for the period September 4, 2025 through December 31, 2025. Costs would be higher if the full twelve month period was included. ** Annualized
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE? For the period September 4, 2025 to December 31, 2025 (the“reporting period”), the Fund’s NAV total return was -25.14% compared to the return of -33.62% of the CoinDesk Ethereum Index (ETX), an ether spot index, outperforming the Index by 8.48% for the reporting period. The Fund’s relative outperformance during the reporting period was primarily attributable to option premium income, which partially offset declines in the price of ether. Selling a call option caps upside participation because the Fund is short a call at a defined strike, either at-the-money (ATM, where the strike is approximately equal to the current price) or out-of-the-money (OTM, where the strike is above the current price). The option premium collected contributes positively to overall returns in flat or declining markets. However, if the underlying price rises above the strike plus the premium received,the Fund’s short call position may limit upside participation relative to the underlying reference asset. HOW DID THE FUND PERFORM SINCE INCEPTION?* The $10,000 chart reflects a hypothetical $10,000 investment in the Fund. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted. CUMULATIVE PERFORMANCE (Initial Investment of $10,000)
ANNUAL AVERAGE TOTAL RETURN (%)
Since Inception (09/04/2025)
Grayscale Ethereum Covered Call ETF NAV
-25.14
S&P 500 TR Index
6.58
CoinDesk Ethereum Index
-33.62
Grayscale Ethereum Covered Call ETF
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Visit https://etfs.grayscale.com/etco for more recent performance information. * The Fund’s past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (as of December 31, 2025) Net Assets
$6,273,646
Number of Holdings Net Advisory Fee Portfolio Turnover
3
$11,983
—%
WHAT DID THE FUND INVEST IN? (% of net assets as of December 31, 2025) Security Type (%) Money Market Funds 81.9% Purchased Options 19.0% Written Options -0.9% Cash & Other 0.0% Top 10 Issuers
(%) First American Government Obligations Fund 81.9% Grayscale Ethereum Mini Trust ETF, Expiration: 01/16/2026; Exercise Price: $21.00 19.0% Grayscale Ethereum Mini Trust ETF, Expiration: 01/09/2026; Exercise Price $29.00 -0.9%
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://etfs.grayscale.com/etco.
HOUSEHOLDING To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Grayscale Funds documents not be householded, please contact Grayscale Funds at 1-866-775-0131, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Grayscale Funds or your financial intermediary.
Grayscale Ethereum Covered Call ETF
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