ETH Zero

Official Notice – Impact of the Ethereum Merge

September 8th, 2022

The upcoming Ethereum merge from its current Proof-of-Work (PoW) mining consensus to Proof-of-Stake (PoS) is expected for the third week of September 2022. In recent weeks, the merge has sparked discussions on potential hard forks within the Ethereum miner community, with some Ethereum miners announcing their intention to maintain Ethereum PoW (currently called ETHW). Please note that, at this time, there is no clear estimate of the actual occurrence nor the timing of the ETH hard fork.
Terms and conditions as stated in the Base Prospectus are applicable. See further “Fork policy risk and risk associated with newly-forked assets.
If a fork will take place, Helveteq will instruct its Custodian Bitcoin Suisse to sell the forked assets (currently called ETHW) and reinvest the proceeds into the mainstream PoS ETH. This will happen according to the procedure that has been defined by Bitcoin Suisse and will only be exercised if the related costs allow for a positive net result.

Helveteq AG

Product Description

Ether Zero ETP (Exchange Traded Product with Ticker ETH2O) replicates the performance of its underlying asset – Ether (ETH). Ether Zero ETP has virtually zero carbon impact on the environment.  The negative effect of the energy-consuming cryptocurrencies backing our products is compensated by Helveteq.

This means that Ether Zero ETP is designed to give investors one of the cleanest, simplest and safest way to gain exposure to ETH, among the largest cryptocurrencies by market capitalization.

Historical Performance

*Chart shows the development of an initial investment amount of $1000.

Product Statistics

NA NA2
Valuation Date 9/29/2022
NAV per Unit (USD) 12.95
Daily Change -1.29%

Product Details

NA NA2
Issuer Helveteq AG
Investor Fee 1.69% p.a.
Base Currency USD
Initial Quantity per Security 0.01
VALOR 116757444
ISIN CH1167574446
SIX Ticker ETH2O
WKN A3GY93
Bloomberg ETH2O SW
Reuters ETH2O.S

Service Providers

NA NA2
Custodian                Bitcoin Suisse AG
Market Maker GHCO
Authorized Participant GHCO
Administrator            Intertrust Group
Security Agent           Adexas Rechtsanwälte AG
Carbon Research             University of Zurich

Clean

The entire «Zero» suite of products is carbon neutral, therefore designed for investors with an ESG focus. In accordance with SFDR, a new regulation requiring financial service providers and owners of financial products to assess and disclose ESG considerations publicly, the SFDR Classification as well as the relevant pre-contractual disclosures for the product are available under https://helveteq.com/sfdr.

Regulated

Listed on the SIX Swiss Exchange ETPs segment. Crucially, this is a fully regulated exchange segment – unlike other trading platforms in Europe. Under national securities exchange legislation, SIX  is empowered with self-regulatory authority and therefore has optimal flexibility to combine a high level of investor protection and transparency with attractive regulatory conditions for issuers.

Secure

An independent Security Agent assumes responsibility for the pledged assets in favour of the investors using the underlying assets as collateral. It is therefore always guaranteed that investments are fully secured against default of the issuer. Furthermore, the collateral is securely held with a third-party custodial services provider and the value (NAV) of your investment is independently verified daily by a regulated administrator.

Simple

ETPs are financial instruments listed and exchanged in the same manner as shares across exchanges and platforms. The regulatory, administrative and operational complexity associated with retail products is fully covered by Helveteq. ETPs have all necessary features solved. You can focus on the strategy and invest in the product easily through your broker or bank, just as you would buy shares.

How we compensate

SFDR (Article 8) disclosures

Summary

The Helveteq Ether Zero ETP promotes environmental and social characteristics by investing into crypto assets backed by carbon compensation certificates. The decision-making process incorporated into this product integrates sustainability criteria that are being met by means of strict methodological rules.

No sustainable investment objective

This financial product promotes environmental or social characteristics but does not have as its objective a sustainable investment.

Environmental or social characteristics of the financial product

The product promotes environmental and social characteristics by carefully assessing the carbon footprint of the underlying that is being tracked. The carbon compensation certificates held by Helveteq must fulfil a minimum ESG standard based on a proprietary model that takes into account the certification process as well as multi-level project impact.

Investment strategy

Helveteq Ether Zero ETP is designed to enable investors to gain a carbon neutral, simple and cost-efficient way to access the crypto market by providing a return equivalent to the movements in the Ether spot price less the applicable management fee. The ETP provides for easy investor access, tradability, transparency and institutional custody solutions within a robust physically backed structure.

Proportion of investments

The sustainability criteria are applied to 100% of the securities held by the Helveteq Ether Zero ETP.

Monitoring of environmental or social characteristics

Compliance with environmental, social and governance characteristics as described in the “Methodologies” section is monitored via strict implementation of four eyes principle, including plausibility checks of the results.

Methodologies

Information in relation to data and methodologies can be found in our Sustainability Statement (https://helveteq.com/helveteq_sustainability_statement/).

Data sources and processing

Information in relation to data and methodologies can be found in our Sustainability Statement (https://helveteq.com/helveteq_sustainability_statement/).

Limitations to methodologies and data

The data obtained from third-party data providers or issuers may be incomplete, inaccurate, or unavailable and the assumptions or models on which internal analysis rests may have flaws that render the internal assessment incomplete or inaccurate. As a result, there exists a risk of incorrectly assessing a security, resulting in the incorrect inclusion or exclusion of a security. There is also a risk we may not apply the relevant criteria of the ESG research correctly or that the underlying investment could have indirect exposure to entities who do not meet the relevant criteria.

Due Diligence

As an intrinsic part of the investment strategy, no other underlyings apart from Ether (ETH) are allowed. Therefore, no other potentially harmful securities can enter the portfolio.

The relevant carbon footprint of the underlying is calculated in accordance with the research provided by the University of Zurich. The amount of carbon compensation certificates bought is monitored and compared to the calculated amount monthly. The projects are reviewed by multiple team members for their compatibility with our criteria.

Engagement policies

Helveteq actively engages with companies that are within our market coverage range in a constructive manner. The outcomes of our engagement efforts are communicated to every employee of the company, enabling them to improve our offering to help companies meet ESG goals. Engagement consists of a constructive dialogue between Helveteq and target companies to discuss how they manage ESG risks and seize business opportunities associated with sustainability challenges. Helveteq mainly carries out value engagement.

Value engagement is a proactive approach focusing on long-term, financially material ESG opportunities and risks that can affect companies’ valuation and ability to create value. The primary objective is to create value for investors by improving sustainability conduct and corporate governance.

Designated reference benchmark

The reference price index is the CME CF Ether-Dollar Reference Rate (ETHUSD_RR). It is used to price the underlying of the ETP and calculate the NAV. The index for CO2 emission is provided by the Swiss FinTech Innovation Lab of the Institute for Banking and Finance at the University of Zurich (UZH).