Fidelity's spot Ethereum Exchange-Traded Fund (ETF) recently acquired 10,100 ETH, valued at approximately $21.7 million as of March 4.
Background on Fidelity's Ethereum ETF:
Launch: Fidelity introduced the Fidelity® Ethereum Fund (FETH) in July 2024, offering investors direct exposure to Ethereum through a spot ETF structure.
Custody: The fund's underlying Ether is securely custodied by Fidelity Digital Assets, ensuring institutional-grade security for investors.
Expense Ratio: FETH is competitively priced with an expense ratio of 0.25%, which was waived until January 1, 2025, to provide added value to investors.
Significance of the Recent Purchase:
This substantial acquisition underscores Fidelity's commitment to expanding its cryptocurrency offerings and reflects the growing institutional interest in Ethereum as a viable asset class. The move aligns with a broader trend of traditional financial institutions integrating digital assets into their investment portfolios.
Investors seeking exposure to Ethereum may consider FETH as a regulated and secure avenue, benefiting from Fidelity's extensive experience in asset management and digital asset custody.