Mr. Murray Oxby reports

CI GLOBAL ASSET MANAGEMENT CONTINUES TO ENHANCE DIGITAL ASSETS LINEUP WITH PROPOSED STAKING STRATEGY FOR ETHX

CI Global Asset Management has proposed to introduce a staking strategy to CI Galaxy Ethereum ETF, Canada's largest exchange-traded fund investing directly in the ether digital currency.

CI GAM believes that its proposal to stake a portion of the ether tokens (ETH) held within the ETF's portfolio will benefit unitholders by enhancing the total return of the ETF, which trades on the Toronto Stock Exchange under the tickers ETHX.B and ETHX.U.

As part of the proposal, CI GAM is seeking unitholder approval to receive a portion of the net staking rewards in consideration for implementing and administering staking. CI GAM expects to hold a unitholder meeting to vote on the proposed fee on or about Aug. 20, 2025. Full details of the proposal will be available in July, with meeting materials being mailed to unitholders on or about July 21, 2025.

"CI GAM is a leader in providing digital asset investment solutions to Canadians, and we continue to build on that position with this enhancement to ETHX and our recent launch of CI Galaxy Solana ETF," said Jennifer Sinopoli, executive vice-president and head of distribution for CI GAM.

"Our solutions allow investors to benefit from the growth potential of decentralized finance and other blockchain applications while investing with all the advantages of ETFs and mutual funds. These include convenience, transparency, liquidity, professional management, eligibility for registered plans and the ability to integrate digital assets into your overall investment plan."

ETHX provides investors with exposure to ETH, the digital currency underlying the ethereum network, a decentralized software platform using blockchain technology. Ethereum operates on a proof-of-stake system, in which validators verify transactions and ensure the smooth operation of the network in exchange for the opportunity to receive rewards of additional ETH. Validators must lock up or stake ETH to participate in this process.

Deep expertise in digital assets

Galaxy Asset Management, the subadviser to the ETF, has been engaged to facilitate the staking arrangements, given the firm's deep expertise in digital assets and extensive experience as a validator on the ethereum and other blockchain networks.

CI GAM intends to take a measured approach by initially allocating up to 50 per cent of the ETF's ETH holdings to staking. CI GAM is proposing to share in the rewards generated for the ETF by the staking arrangements (net of fees payable to the validator), such that no less than 75 per cent of the net rewards accrue to the ETF and up to 25 per cent accrue to CI GAM as the staking service fee.

CI GAM believes that ETH staking offers the following potential benefits:

• Enhanced returns through earning staking rewards;
• Increased capital efficiency by using ETH holdings that would otherwise remain idle to generate rewards;
• Enhanced competitive positioning by expanding the investment strategies of the ETF;
• A complement to the ETF's core strategy of providing exposure to ETH.

The independent review committee for the ETF has reviewed the proposal for the staking arrangements and staking service fee with respect to potential conflict of interest matters and provided a positive recommendation, having determined that the proposal, if implemented, achieves a fair and reasonable result for the ETF.

A comprehensive lineup

CI GAM partners with Galaxy to provide one of the industry's most comprehensive lineups of digital asset solutions:

• CI Galaxy Bitcoin ETF (BTCX.B and BTCX.U) and CI Bitcoin Fund;
• CI Galaxy Ethereum ETF (ETHX.B and ETHX.U) and CI Ethereum Fund;
• CI Galaxy Solana ETF (SOLX.B and SOLX.U);
• CI Galaxy Multi-Crypto ETF (CMCX.B and CMCX.U);
• CI Galaxy Blockchain Index ETF (CBCX).

We seek Safe Harbor.