Fidelity Ethereum Fund reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The Trust's total net assets decreased to approximately $1.24 billion, down from $1.57 billion at the end of the previous fiscal period. This decline was primarily attributed to a decrease in the price of ether, which fell by 25.43% from $3,333.60 to $2,485.81 during the six-month period. The net asset value (NAV) per share also reflected this downturn, decreasing from $33.34 to $24.83, marking a 25.03% decline.
In terms of operational metrics, the Trust saw an increase in outstanding shares, which rose from 47,175,000 to 49,925,000. This increase was driven by the issuance of 36,550,000 shares and the redemption of 33,800,000 shares. The quantity of ether held by the Trust also increased, from 471,750 ether to 498,722 ether, as the Trust utilized net cash proceeds from capital transactions to purchase additional ether. The Trust's investment in ether, valued at $1.24 billion, accounted for 100% of its net assets.
The Trust's financial performance for the quarter included a net increase in net assets resulting from operations of approximately $247.2 million, primarily due to a net unrealized appreciation on investments in ether. However, the Trust also reported a net realized loss of $146.7 million from the sale of ether for redemptions. The Trust's expenses for the quarter included a sponsor fee of $603,000, which was the first fee recorded since the Trust's inception.
Looking ahead, the Trust's management remains focused on tracking the performance of ether as measured by the Fidelity Ethereum Reference Rate. The Trust is passively managed and does not engage in active trading strategies. The Sponsor, FD Funds Management LLC, has agreed to assume most expenses incurred by the Trust, which may help mitigate some financial pressures. However, the Trust's future performance remains contingent on market conditions and the price movements of ether, which are subject to various risks and uncertainties.
About Fidelity Ethereum Fund
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