Fri, Aug 23, 6:35 PM (144 days ago)
The Fidelity Ethereum Fund's 10-Q report for the quarter ending June 30, 2024, highlights its initial financial performance following its establishment on May 24, 2024. The fund holds 1,250 ethers valued at $4.368 million, reflecting an unrealized loss of $383,000 since its acquisition. Total net assets are reported at $4.368 million, with a net asset value (NAV) per share of $34.94 for 125,000 shares outstanding. The fund's operations incurred no investment income, and expenses were waived by the sponsor, resulting in no net investment income. The fund does not hold cash, relying on ether transactions for liquidity. The report emphasizes the concentration risk associated with its sole investment in ether, which exposes the fund to market volatility. Looking forward, the fund has entered into a Fee Waiver Agreement, suspending the sponsor fee through December 31, 2024. This quarter marks the fund's early operational phase, with trading commencing on July 23, 2024. Future performance will hinge on ether market dynamics, with risks and uncertainties related to market conditions and regulatory changes potentially impacting operations.