Fund Slashes Ether ETF Position by $16 Million as World's Second-Largest Cryptocurrency Piles On Losses

Core Insights - Pilgrim Partners Asia Pte Ltd sold 620,000 shares of the iShares Ethereum Trust ETF (NASDAQ:ETHA) for an estimated value of $16.21 million, reflecting a reduction in their position during the fourth quarter [1][2] - The value of the ETHA position decreased by $19.63 million at quarter-end, influenced by both the share sales and price changes [2] - Following the sale, Pilgrim Partners Asia's stake in ETHA dropped to 0.11% of their 13F reportable AUM [3] ETF Overview - The iShares Ethereum Trust ETF has an AUM of $10.3 billion and was priced at $17.50 as of February 2, representing a one-year price change of -14.76% [4] - The ETF has significantly underperformed compared to the S&P 500, which gained approximately 15% over the same period [3] Investment Strategy - The ETF aims to provide exposure to the price performance of ether (ETH) by holding ether directly, allowing investors to track the value of the underlying digital asset without direct ownership [7] - The fund's portfolio primarily consists of ether, designed to closely mirror the spot price of ETH with minimal diversification [7] - The ETF operates as a grantor trust, typical of digital asset funds, although detailed expense ratio information is not provided [7]