Common use of Authorized Participant Status Clause in Contracts

Authorized Participant Status. The Authorized Participant understands and acknowledges that the method by which Baskets of Shares will be created and traded may raise certain issues under applicable securities laws. For example, because new Baskets of Shares may be issued and sold by the Trust on an ongoing basis, at any point a “distribution”, as such term is used in the 1933 Act, may occur. In addition, the Authorized Participant understands and acknowledges that the proposed method by which Baskets will be created and redeemed for Ethereum may raise certain issues under applicable laws or the Authorized Participant’s FINRA member agreement, if applicable, or federal or state money services business laws. The Authorized Participant should consult with its own counsel in connection with entering into this Agreement and submitting a Purchase Order or Redemption Order.

Authorized Participant Status. The Authorized Participant understands and acknowledges that the method by which Baskets of Shares will be created and traded may raise certain issues under applicable securities laws. For example, because new Baskets of Shares may be issued and sold by the Trust on an ongoing basis, at any point a “distribution”, as such term is used in the 1933 Act, may occur. In addition, the Authorized Participant understands and acknowledges that the proposed method by which Baskets will be created and redeemed for Ethereum bitcoin may raise certain issues under applicable laws or the Authorized Participant’s FINRA member agreement, if applicable, or federal or state money services business laws. The Authorized Participant should consult with its own counsel in connection with entering into this Agreement and submitting a Purchase Order or Redemption Order. For the avoidance of doubt, the Authorized Participant does not admit to being an underwriter of the Shares.