Wed, Nov 13, 8:51 PM (23 days ago)
For the quarter ended September 30, 2024, Fidelity Ethereum Fund (FETH) reported a significant increase in net assets, rising from $4.4 million at the end of June to $424.5 million. This growth was primarily attributed to the issuance of 16,375,000 shares, despite a 23.79% decline in ether prices during the same period, which impacted the net asset value (NAV) per share, decreasing it by 25.50% to $25.92. The Trust's total investment in ether, valued at $424.5 million, showed unrealized losses of $56.5 million and realized losses of $2.1 million, resulting in a net decrease in net assets from operations of $58.6 million. The Trust does not maintain cash reserves, relying on ether transactions for liquidity and expenses. The Sponsor waived the fee of 0.25% until the year's end, further emphasizing the Trust's focus on ether as its sole asset. The report highlights the volatility inherent in digital asset investments, with future performance highly contingent on market conditions. Overall, the Trust's operations reflect a concentrated investment strategy in ether, presenting both opportunities and risks for investors.