Valour action on forked assets received following the Ethereum Merge: transition to Proof-of-Stake

Overview
The first phase of the long anticipated Ethereum upgrade successfully completed on Thursday 15th September 2022, changing Ethereum’s consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS).

Valour’s Ethereum Zero products (Valour Ethereum Zero SEK, ISIN: CH1104954362 and Valour Ethereum Zero EUR, ISIN: CH0585378752) enable investors to gain exposure to Ethereum (ETH) with zero management fees. The referenced asset under Valour’s certificate program continues to track the underlying asset (ETH) of the upgraded Proof-of-Stake blockchain, known as the Beacon Chain.

In line with Valour’s commitment to maximize shareholder value, assets received from airdrops and forked versions of the Ethereum protocol will be reinvested into the certificate progam’s underlying asset, and integrated into the product’s NAV (Net Asset Value).
No action will be required of current holders of Valour Ethereum Zero SEK and Valour Ethereum Zero EUR ETPs.

For Valour’s previous communications on the Ethereum upgrade (the Merge), please refer to Valour’s initial statement ([here](https://valour.com/press/valour-action-on-forked-assets-received-following-the-ethereum-merge)) and further clarification ([here](https://valour.com/press/further-clarification-on-the-ethereum-merge-transition-to-proof-of-stake)).

Certificates
As previously specified, the referenced asset of Valour’s existing Ethereum Zero certificates (ISINs below) have remained unchanged and continue to track the native token of the now upgraded Ethereum Beacon Chain blockchain, with no action having been required of certificate holders.

- Valour Ethereum Zero SEK, CH1104954362
- Valour Ethereum Zero EUR, CH0585378752

Forks
Following the successful transition to Proof-of-Stake, a fork event occurred in which a group of miners split the chain and created a separate protocol with duplicated fund balances on the new chain. As outlined in previous communications, Valour has been working diligently with its counterparties and can confirm that it has received some allocation from the EthereumPoW (ETHW) fork. In order to maximise shareholder value, Valour will sell its ETHW allocations and reinvest proceeds into the certificate program’s underlying asset, namely, the native ETH of the upgraded PoS Beacon Chain. In line with this decision, Valour will gradually sell its allocation (subject to the support and availability of its counterparties) to minimize its impact on the market. The proceeds will be reflected in certificates through an adjustment to the certificate multiplier resulting in an adjustment to the Valour Ethereum Zero NAV (Net Asset Value) of both certificates.

Valour will continue its approach of keeping investors updated as and when additional, relevant information is received.

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