21Shares Ethereum ETF 8-K

What Happened

• 21Shares Ethereum ETF (TETH) announced on Feb 4, 2026 that it entered into staking services agreements with Figment Inc. and Twinstake Ltd. Under these agreements, Figment and Twinstake will provide staking infrastructure and services to enable the Trust to stake ether and earn blockchain staking rewards. Compensation to each provider will be a portion of staking rewards, generally expected to be a low single‑digit percentage.

Key Details

• Effective date: February 4, 2026 for both the Figment Agreement and the Twinstake Agreement.
• Staking control: The Trust may stake or unstake ether at its discretion but is subject to Ethereum bonding/unbonding periods during which tokens and rewards may be unavailable.
• Liability limits:
  • Figment: overall (Global) liability capped at service fees collected by Figment during the six months before the initial loss-causing event; slashing penalties cap tied to six months’ fees; missed-rewards cap tied to three months’ fees. Caps do not apply to slashing penalties caused by Figment’s gross negligence, fraud or willful misconduct. Caps are cumulative for the term, not per event.
  • Twinstake: liability generally capped at service fees paid by the Trust to Twinstake in the 12 months preceding the first event giving rise to liability; similar exceptions for gross negligence, fraud or willful misconduct with respect to slashing.
• Termination and other rights: Figment may stop operating validator nodes with reasonable prior notice; both agreements can be terminated by either party (Twinstake requires at least 90 days’ notice to terminate for any reason; the Trust can immediately terminate Twinstake if it has no assets delegated). Mutual indemnities apply, with specific carve-outs for slashing and missed rewards.

Why It Matters

• For investors, these agreements establish how TETH will participate in Ethereum staking and share staking rewards with service providers, which can affect net staking yield and the timing/availability of staked ether. Liability caps and indemnities define the Trust’s and providers’ financial exposure to events like missed rewards or slashing penalties. The arrangements do not guarantee rewards and reflect typical operational and counterparty risks associated with staking on the Ethereum network.