2 min readSeptember 14, 2022 | SAINT HELIER, Jersey - CoinShares (“the Company”) (Nasdaq First North Growth Market: CS; US OTCQX: CNSRF), Europe's leading full-service digital asset investment and trading group has today announced how CoinShares Digital Securities Limited (“CSDS” or the “Issuer”) the wholly owned subsidiary and Issuer of the CoinShares Physical range of Exchange-Traded Products (ETPs) is planning to deal with the upcoming merge in the Ethereum network.
The affected security, CoinShares Physical Ethereum, is listed on the SIX Swiss Exchange, Xetra in Germany, and Euronext in France and the Netherlands.
CoinShares Physical Ethereum
Tickers: ETHE / CETH
ISIN: GB00BLD4ZM24
WKN: A3GQ2N
The Issuer has been closely following the developments in the Ethereum protocol, with respect to both the proposed move (the “Merge”) to a Proof of Stake consensus network (the “ETHPoS”) as well as the proposed fork (the “Fork”) of the existing Proof of Work consensus network (the “ETHPoW”). As a result of the Fork, the Issuer understands that a new Digital Currency (“ETHW”) will be created and distributed pro rata to all holders of the existing Ether Digital Currency (ETH).
The Fork will constitute a Fork Event for the purposes of the Conditions. The Issuer expects, to the extent possible, to share the ETHW with Security Holders of CoinShares Physical Ethereum pursuant to Condition 15.4 of the Conditions of the Digital Securities. However, the Issuer notes (i) that the markets for both ETHW and ETH may experience significant price volatility during the Merge, and (ii) that the new protocol for ETHW may experience risks associated with the stability of the technology underpinning the protocol as well as risks to the adoption of ETHW among exchanges and custodians. As a result, the Issuer will continue to monitor the situation for ETHW, with a focus on the timing, adoption and viability of the new protocol and underlying digital currency before finalising any approach to a distribution associated with a Fork Event.
Terms used in this announcement and not otherwise defined bear the same meanings as used in the base prospectus of the Issuer dated April 20, 2022.
About the CoinShares Group
CoinShares is a leading full-service digital asset investment and trading group that delivers a broad range of financial services across investment management, trading, securities and consumer products to a wide array of clients that includes corporations, financial institutions and individuals. The firm is headquartered in Jersey, with offices in France, Stockholm, the UK and the US. CoinShares is regulated by the JFSC, AMF and FINRA. CoinShares is publicly listed on the Nasdaq First North Growth Market under the ticker CS and the OTCQX under the ticker CNSRF.
To learn more about CoinShares, please visit: www.coinshares.com
CoinShares Media Contact
Jay Morakis
+1 646 859 5951
Certified Advisor
Mangold Fondkommission AB
+46 (0)8 503 015 50
