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United States securities and exchange commission logo





                               June 14, 2024

       Ophelia Snyder
       President
       21Shares Core Ethereum ETF
       477 Madison Avenue, 6th Floor
       New York, NY 10022

                                                        Re: 21Shares Core
Ethereum ETF
                                                            Amendment No. 3 to
Registration Statement on Form S-1
                                                            Filed May 31, 2024
                                                            File No. 333-274364

       Dear Ophelia Snyder:

                                                        We have reviewed your
registration statement and have the following comments.

              Please respond to this letter by amending your registration
statement and providing the
       requested information. If you do not believe a comment applies to your
facts and circumstances
       or do not believe an amendment is appropriate, please tell us why in
your response.

              After reviewing any amendment to your registration statement and
the information you
       provide in response to this letter, we may have additional comments.

       Amendment No. 3 to Registration Statement on Form S-1

       Cover page

   1.                                                   When available, please
disclose here the price per Share and aggregate price of the initial
                                                        Seed Creation Baskets.
   2.                                                   Please revise the cover
page to state that the Trust will not participate in the proof-of-stake
                                                        validation mechanism of
the Ethereum network (i.e., the Trust will not    stake    its ether) to
                                                        earn additional ether
or seek other means of generating income from its ether holdings.
       Prospectus Summary, page 1

   3.                                                   Please disclose here
that the Trust is a passive investment vehicle that does not seek to
                                                        generate returns beyond
tracking the price of ether.
   4.                                                   Please revise your
Prospectus Summary disclosure to clarify, if true, that with respect to
                                                        any fork, airdrop or
similar event, the Sponsor will cause the Trust to irrevocably abandon
                                                        the Incidental Rights
or IR Virtual Currency and in the event the Trust seeks to change
 Ophelia Snyder
FirstName  LastNameOphelia
21Shares Core  Ethereum ETFSnyder
Comapany
June       Name21Shares Core Ethereum ETF
     14, 2024
June 14,
Page 2 2024 Page 2
FirstName LastName
         this position, an application would need to be filed with the SEC by
your listing exchange
         seeking approval to amend its listing rules.
5.       Please revise your Prospectus Summary to disclose that shareholders do
not have voting
         rights under the Trust Agreement except in limited circumstances and
briefly describe
         those circumstances here and in the Voting by Shareholders section.
6.       We note your disclosure in your Creation and Redemption of Shares
section beginning on
         page 91 regarding the Ether Counterparties. Please revise your
Prospectus Summary to:
             Identify any Ether Trading Counterparties with whom the Sponsor
has entered into an
             agreement. Clarify whether and to what extent any of the Ether
Trading
             Counterparties are affiliated with or have any material
relationships with any of the
             Authorized Participants. Alternatively, clarify, if true, that you
are not able to identify
             any particular Ether Trading Counterparties at this time.
             Disclose, if known, the material terms of any agreement you have
entered into, or
             will enter into with an Ether Trading Counterparty, including
whether and to what
             extent there will be any contractual obligations on the part of
the Ether Trading
             Counterparty to participate in cash orders for creations or
redemptions.
Risk Factors, page 14

7.       Please add a risk factor describing the risks to Shareholders of the
exclusive jurisdiction
         provision of the Trust Agreement and state whether this provision
applies to causes of
         action arising under the U.S. federal securities laws.
8.       Please add a risk factor addressing that at times, there has been a
single entity that has
         reportedly controlled around or in excess of 33% of the total staked
ether on the Ethereum
         network, which poses centralization concerns and could permit the
entity to attempt to
         interfere with transaction finality or block confirmations. Address
the concern that if such
         an entity, or a bad actor with a similar sized stake, were to attempt
to interfere with
         transaction finality or block confirmations, it could negatively
affect the use and adoption
         of the Ethereum network, the value of ether, and thus the value of
your shares.
         Additionally, please revise your "Ethereum is subject to cybersecurity
risk" discussion on
         page 32 to also address the possibility of a 33% attack and a 66%
attack.
An investment in the Trust is not a deposit, page 23

9.       Please clarify in the second paragraph, as you do on page 81, that the
insurance
         maintained by the Ether Custodian is shared among all the Ether
Custodian   s customers
         and is not specific to the Trust or to customers holding ether with
the Ether Custodian.
         Similarly revise the Summary discussion on pages 6 and 7.
Ether, Ether Markets and Regulation of Ether, page 61

10.      Please add a separately captioned subsection discussing the following
related to ether and
         the Ethereum network:
 Ophelia Snyder
21Shares Core Ethereum ETF
June 14, 2024
Page 3
                Limitations on the supply of ether.
                Quantify the amount of ether outstanding and the amount of
ether issued and burned
              as of a recent date.
                An expanded discussion of modifications to the Ethereum
protocol.
                An updated discussion of recent planned forks, including
Dencun    and EIP 4844.
NAV Determination, page 72

11.      Please disclose what policies or procedures you have in place if the
Index becomes
         unavailable or if the Sponsor determines that the Index does not
reflect an accurate ether
         price.
Potential In-Kind Creation and Redemption of Shares, page 95

12.      Please clarify how you will inform Shareholders if the Exchange
receives regulatory
         approval and the Sponsor chooses to allow creations and redemptions
via in-kind
         transactions.
Suspension or Rejection of Redemption Orders, page 95

13.      You state that the Sponsor may have difficulty liquidating the Trust
s positions because of
            an unanticipated delay in the liquidation of a position in an
over-the-counter contract.
         Please describe the circumstances in which the Trust would have a
position in an over-the
         counter contract. In this regard, we note your disclosure that the
Prime Broker exchanges
         the Trust's ether for cash and the Trust's cash for ether in
connection with creations,
         redemptions and paying the Trust's expenses.
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

       Refer to Rules 460 and 461 regarding requests for acceleration. Please
allow adequate
time for us to review any amendment prior to the requested effective date of
the registration
statement.

       Please contact Michelle Miller at 202-551-3368 or Jason Niethamer at
202-551-3855 if
you have questions regarding comments on the financial statements and related
matters. Please
contact J. Nolan McWilliams at 202-551-3217 or Sandra Hunter Berkheimer at
202-551-3758
with any other questions.



FirstName LastNameOphelia Snyder                               Sincerely,
Comapany Name21Shares Core Ethereum ETF
June 14, 2024 Page 3                                           Division of
Corporation Finance
FirstName LastName                                             Office of Crypto
Assets
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