Purpose Investments announced the successful completion of a tax-deferred merger between Purpose Ether Staking Corp. ETF (ETHC.B) and Purpose Ether ETF (ETHH.B) on February 13, 2026. Shareholders of the terminating fund received units of the continuing fund at an exchange ratio of 0.4003661, resulting in the issuance of 6,422,340 units. The merger consolidates the firm's ether-focused investment offerings under a single fund structure.
In connection with the merger completion, Purpose Investments declared a special notional capital gain distribution of $0.0307 per share for the 2026 tax year, representing 0.82% of the fund's net asset value. This distribution reflects the taxable gains realized through the consolidation process. The tax-deferred structure of the merger allows shareholders to continue their investment exposure to ether without immediate tax consequences from the fund combination itself.
The transaction aligns with Purpose Investments' broader strategy to streamline its cryptocurrency ETF product lineup. By consolidating these two ether-focused funds, the firm reduces redundancy while maintaining investor exposure to ethereum-based digital assets and staking mechanisms.