INVESTOR
RELATIONS

We believe that Ethereum is the leading smart contract platform that will one day support trillions-of-dollars' worth of activity. The majority of our portfolio is made up of Ethereum's native token, Ether, the asset that incentivizes network participants and underpins all activity that takes place on the protocol.

Ethereum transitioned from a Proof-of-Work mining consensus to a new form of validation called Proof of Stake on September 15, 2022. This put an end to energy-intensive mining and allows token holders to become validators by locking up their ether as collateral. As a result, validators are rewarded in newly-minted ether for helping secure the network and approving transactions that take place on the blockchain.

Staking rewards are awarded to validators for participating in the Ethereum Proof-of-Stake consensus protocol. Some of these rewards (consensus layer rewards) are paid out in the form of Ether and are illiquid until the Shanghai upgrade, which is designed to enable staked ETH withdrawals and consensus layer payouts. Consensus layer rewards are given to validators that successfully propose or attest to blocks filled with transactions.

Ether is Ethereum’s native crypto asset and the commodity-like fuel used to access the network and secure transactions. Ethereum is the leading smart contract platform and backbone to fascinating innovations like non-fungible tokens (NFTs), decentralized finance (DeFi) and the metaverse. The "Ether" we refer to in our portfolio is freely tradeable and also takes into account our execution layer rewards. These rewards are a combination of transaction fees and priority tips that have been paid out to validators ever since the Merge on September 15, 2022.

Our cash and cash equivalents includes fiat currency and units in the Purpose Ether ETF (ETHH).