Fidelity Ethereum Fund (FETH) SEC Filings

Fidelity Ethereum Fund (FETH) is a Delaware statutory grantor trust and exchange‑traded product whose Shares trade on Cboe BZX. It seeks to track the U.S. dollar price performance of ether via the Fidelity Ethereum Reference Rate, adjusted for expenses and liabilities, plus staking rewards, so it is expected to outperform the Index before fees.

The Trust holds ether directly, does not use derivatives or leverage, and under normal circumstances may stake up to 100% of its ether through custodians and node operators, subject to liquidity reserves. Staking rewards are shared, with the Trust retaining 85% after a flat 15% Staking Fee and paying a 0.25% annual Sponsor Fee on Ether Holdings. Quarterly cash distributions of accumulated staking rewards are contemplated but are not guaranteed and may be modified or suspended. Shares are created and redeemed only in 25,000‑Share Baskets for ether or cash by Authorized Participants, while secondary investors trade at market prices that may differ from NAV. The Trust is not registered under the 1940 Act, is not a commodity pool, and investors do not receive FDIC or SIPC protection and could lose their entire investment.

Fidelity Ethereum Fund (FETH) is a Delaware grantor trust and exchange‑traded product that continuously offers Shares of beneficial interest designed to track the U.S. dollar value of ether using the Fidelity Ethereum Reference Rate, adjusted for expenses and liabilities, plus an amount based on ether staking rewards. Shares trade on Cboe BZX under ticker “FETH” and are issued and redeemed only in Baskets of 25,000 Shares, for ether or cash, through Authorized Participants.

The Trust intends under normal circumstances to stake up to 100% of its ether with node operators via institutional custodians (Anchorage Digital, BitGo, and Fidelity Digital Assets), retaining 85% of staking rewards after a flat 15% Staking Fee and paying a unified Sponsor Fee of 0.25% of Ether Holdings. Staking introduces liquidity constraints and potential “slashing” losses, and the Sponsor may extend redemption settlement or use cash redemptions and other tools to manage liquidity. The Trust is not registered under the Investment Company Act, is not a commodity pool, and its assets and staking positions are not protected by FDIC or SIPC insurance. Investors bear ether price volatility, operational, regulatory, and staking risks and could lose their entire investment.

Fidelity Ethereum Fund is a Delaware statutory trust that issues exchange-traded Shares designed to track the performance of ether using the Fidelity Ethereum Reference Rate, adjusted for expenses and liabilities, plus an amount based on ether staking rewards. The Shares trade on Cboe BZX under the symbol FETH in a continuous offering, with creations and redemptions occurring only in Baskets of 25,000 Shares for ether or cash via Authorized Participants.

The Sponsor, FD Funds Management LLC, stakes, or causes to be staked, substantially all of the Trust’s ether with selected Node Operators through institutional Custodians, potentially up to 100% of holdings in normal conditions, to earn staking rewards. The Trust distributes staking rewards in cash, generally on a quarterly basis, after converting ether to U.S. dollars and deducting expenses and a 15% Staking Fee (the Trust retains 85%). Investors pay a unified Sponsor Fee of 0.25% per year on Ether Holdings; the Sponsor covers ordinary operating costs, while Extraordinary Expenses are borne by the Trust.

The Trust is not registered under the Investment Company Act of 1940, is not a commodity pool, and Shareholders do not receive protections from the 1940 Act, the Advisers Act, the CEA, FDIC or SIPC. The prospectus highlights significant risks tied to ether price volatility, staking (including slashing and liquidity constraints when unstaking), custody and private-key security, potential deviations between NAV and market price, and regulatory and technological uncertainties affecting ether and the Ethereum network.

Fidelity Ethereum Fund entered new custodial services agreements with Anchorage Digital Bank NA and BitGo Bank & Trust, N.A. to provide custody and safekeeping of the Trust’s ether and to support a staking program. An amended and restated sponsor agreement now allocates 15% of staking rewards as compensation for arranging staking, to be shared among the sponsor, custodians, node operators, and other service providers, while the Trust retains the remaining 85% of rewards.

The Trust Agreement was also amended to explicitly permit staking of the Trust’s ether. The Sponsor expects to commence staking activities as soon as practicable after the related registration statement becomes effective. Under the new program, trusted node operators will run validator nodes on the Ethereum network, with custodians maintaining exclusive control of private keys. The Trust intends to make quarterly cash distributions of net staking income to shareholders, funded by sales of staking rewards and/or a portion of its ether, which may affect ether exposure and the market price or net asset value of the shares.

Fidelity Ethereum Fund seeks to track the price of ether via the Fidelity Ethereum Reference Rate. For the six months ended June 30, 2026, net assets fell from $2.21 billion to $758.6 million, driven by both ether price declines and net share redemptions.

NAV per share dropped from $29.64 at December 31, 2025 to $15.87, a total return at NAV of (46.46)%, while market price total return was (46.84)%. Ether in custody declined from 743,795 to 476,311 units as 46,075,000 shares were created and 72,825,000 redeemed. Over the period, the principal‑market ether price fell 46.39%, from $2,971.55 to $1,593.01.

The fund recorded a $917.5 million net decrease in net assets from operations, including $404.0 million of realized losses on ether sold for redemptions and $537.6 million of unrealized depreciation. The unified 0.25% Sponsor Fee remained low, and management reported effective disclosure controls with no material changes in internal control or new legal proceedings.

Fidelity Ethereum Fund is a Delaware statutory trust that issues exchange-traded Shares designed to provide exposure to the price of ether (ETH), as measured by the Fidelity Ethereum Reference Rate, plus an amount based on ether staking rewards, reduced by expenses and liabilities. Shares trade on Cboe BZX under the ticker FETH and are created and redeemed in Baskets of 25,000 Shares, in ether or cash, through Authorized Participants.

The Trust intends, under normal circumstances, to stake up to 100% of its ether through custodians and node operators, subject to liquidity reserves, and receives staking rewards of which 85% are retained after a 15% staking fee. The Sponsor earns a unified annual fee of 0.25% of Ether Holdings and pays most ordinary expenses; certain extraordinary costs are borne by the Trust. The Trust is not registered under the Investment Company Act of 1940, is not a commodity pool, and investors do not receive protections of the 1940 Act, CFTC regulation, FDIC insurance, or SIPC coverage. The prospectus highlights substantial risks from ether’s extreme price volatility, staking-related risks including slashing and liquidity constraints, operational and custody risks, and the possibility of a total loss of investment.

Fidelity® Ethereum Fund files a preliminary prospectus to register an indeterminate, continuous offering of its Shares (ticker: FETH) for listing on the Cboe BZX Exchange. The Trust seeks to track ether via the Fidelity Ethereum Reference Rate and to add staking-based amounts to the Trust’s net return.

The Sponsor intends to stake up to 100% of the Trust’s ether (with no minimum), receive staking rewards net of a 15% staking fee, and pay a 0.25% unified Sponsor Fee on Ether Holdings. Shares are created and redeemed in Baskets of 25,000 Shares; distributions of staking proceeds are expected to be made quarterly. The Trust will custody ether with multiple custodians and may use liquidity measures (cash redemptions, temporary settlement extensions, credit facilities, or LSTs if permitted) to manage staking-related illiquidity.

Fidelity Ethereum Fund reported significantly lower net assets and NAV for the quarter ended March 31, 2026, reflecting a sharp decline in ether prices and net redemptions. Net assets fell to $1.21 billion from $2.21 billion at December 31, 2025, as ether holdings decreased from 743,795 to 576,821.

NAV per share declined from $29.64 to $20.95, a total return at NAV of -29.31%. The Trust recorded a net decrease in net assets from operations of about $662 million, driven by approximately $407 million of unrealized depreciation and a $277 million realized loss on ether sold for redemptions. Ether’s principal market price dropped 29.27%, from $2,971.55 to $2,101.84, consistent with the fund’s objective of passively tracking ether.

Fidelity Ethereum Fund is a Delaware statutory trust that offers exchange-traded shares on Cboe BZX under the symbol FETH. The fund’s objective is to track the performance of ether using the Fidelity Ethereum Reference Rate Index, adjusted for expenses and liabilities, by passively holding ether in custody at Fidelity Digital Assets.

The Trust values its shares daily using a volume‑weighted median price of ether from multiple spot markets, with NAV struck after 4:00 p.m. EST. Shares are created and redeemed only in blocks of 25,000 through Authorized Participants for ether or cash. The Trust charges a unified Sponsor Fee of 0.25% of Ether Holdings and does not stake ether or use derivatives. The report highlights extensive risks tied to ether’s price volatility, Ethereum network governance and security, index pricing, and evolving digital asset regulation and taxation.