ALTERNATIVES

Introducing the Fidelity® Ethereum Fund (FETH)

Interested in ether cryptocurrency? Incorporating digital assets into your clients' portfolios is now easier than ever with Fidelity Ethereum Fund (FETH).

View pricing & performance View prospectus

This product is for investors with a high risk tolerance. It invests in a single asset, ether, which is highly volatile and can become illiquid at any time. Please see the additional digital assets disclosure below.

An easier path to crypto

Your clients can now invest indirectly in ether cryptocurrency with Fidelity® Ethereum Fund (FETH), giving you another way to consider integrating digital assets into your practice.

Simplicity

With a familiar investment structure, standard reporting, and transparent pricing, FETH can easily be incorporated into your client portfolios.

Experience

Fidelity has been researching bitcoin and developing blockchain solutions since 2014.

Value

Competitive pricing, intraday liquidity, and no lockups all help FETH add value for your clients and your practice.

What is ether cryptocurrency?

Use these Q&As about Ethereum to become your clients’ go-to resource on these topics.

What is Ethereum?
What is Ethereum?

Ethereum is a programmable blockchain. It refers to the blockchain network and distributed platform.
What is ether?
What is ether?

Ether (and sometimes ETH) is the network’s native token. Ether can be used as a method to pay for transactions on the Ethereum network (“on-chain transactions”); as an investment; as an aspiring payment method; or for trading on crypto exchanges.
Fidelity Ethereum Fund (FETH) is a spot Ethereum ETP. Is that different than an ETF?
Fidelity Ethereum Fund (FETH) is a spot Ethereum ETP. Is that different than an ETF?

Spot ether ETPs, or exchange-traded products, track the price of ether. They hold 100% ether as the underlying asset, and can be bought and sold on traditional brokerage platforms just as you would stocks and commodities. All exchange-traded funds (ETFs) are part of a broader category called exchange-traded products (ETPs), which are listed on an exchange and can be bought and sold during market hours like a stock. ETFs, the most common type of ETP, are governed by the Investment Company Act of 1940 and are pooled investment opportunities that typically include baskets of stocks, bonds, and other asset groups based on fund objectives. FETH is similar to an ETF since FETH trades on an exchange, however, FETH is an ETP that holds 100% ether and does not invest in securities; therefore, it is not governed by or subject to the Investment Company Act of 1940.
What does Ethereum have to do with decentralized finance (DeFi)?
What does Ethereum have to do with decentralized finance (DeFi)?

The enhanced functionality of Ethereum provides the ability to create decentralized applications—ones that can run without relying on one computer, service provider, or cloud server. Since the Ethereum network is decentralized, all applications built on top of it are also decentralized and permissionless.
Is Ethereum "better" than Bitcoin?
Is Ethereum "better" than Bitcoin?

We don’t believe one is preferable to the other. Ethereum can be seen as an alternative protocol for building decentralized applications, which necessarily produces different tradeoffs, while the Bitcoin network remains the most popular monetary network among the digital asset ecosystem.
What are some ether investing examples or use cases?
What are some ether investing examples or use cases?

Your clients may be wondering why they would want to buy and hold ether (the token), rather than just use it to interact with the Ethereum network. Check out our Ethereum Investment Thesis white paper to find out more about ether and how its utility may potentially translate into value.

A vision for digital assets. The experience to make it happen.

At our core, Fidelity Investments is committed to innovation, which has helped drive growth during shifting market conditions and consumer preferences. With a firm-wide focus on digital assets, Fidelity is developing a blockchain ecosystem with the goal of becoming a holistic solutions provider.

2014
Fidelity began researching digital assets and blockchain technology.
2015
Fidelity Charitable® began accepting bitcoin contributions from donors.
2018
Fidelity became the first traditional firm to onboard and custody an institutional manager’s bitcoin—through Fidelity Digital Assets℠.
2020
Fidelity Digital Assets℠ added an asset management arm and collateral agent capabilities.
2023
Launched Fidelity Crypto® for Wealth Managers for advisors in Wealthscape℠.*
2024
Launched Fidelity® Wise Origin® Bitcoin Fund (FBTC) and Fidelity® Ethereum Fund (FETH).**

  • **Spot crypto ETPs, such as FBTC and FETH, are not investment companies registered under the Investment Company Act of 1940 (the “1940 Act”) and are not subject to regulation under the Commodity Exchange Act of 1933 (the “CEA”). As a result, shareholders of spot crypto ETPs do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.

A solid foundation

With over 70 years of securities market experience, Fidelity is building on a growing market presence in digital assets. Fidelity Digital AssetsSM provides custody of the cryptocurrency in Fidelity's spot crypto ETPs with extensive operational, cyber, and physical controls to secure the assets.

Fidelity® Ethereum Fund (FETH)

Learn more about FETH and how you can give clients easier exposure to the digital assets market.

View pricing & performance View prospectus

Explore our latest research & insights

RESEARCH
Ethereum investment thesis
In this piece, we consider how utility translates into value for ether the token.
RESEARCH
What to consider when buying crypto
Explore key considerations for your portfolio.
RESEARCH
The omnibus model for custody
In this piece we describe the origins of the omnibus custody model in traditional finance and its application to digital assets.
PRODUCTS & SOLUTIONS
Alternatives

Explore how our alternative investment solutions can offer a wider range of investment opportunities for your clients beyond traditional stocks and bonds.

Learn more

The Fund's assets will be held in one or more accounts maintained for the Fund by Fidelity Digital Asset Services, LLC (as Custodian) or at local custodian banks which may be located in other jurisdictions. The insolvency of the Custodian or of any local broker, custodian bank, or clearing corporation may result in the loss of all or a substantial portion of the Fund's assets. Additionally, custody of digital assets presents inherent and unique risks relating to access loss, theft, and means of recourse in such scenarios. Recourse of the Fund and the investors to the Custodian is limited.

Digital assets are highly volatile, and their market movements are very difficult to predict. Various market forces may impact their value including, but not limited to, supply and demand, investors’ faith and their willingness to purchase it using traditional currencies, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates, an evolving legislative and regulatory environment in the U.S. and abroad, and other economic trends. Investors also face other risks, including significant and negative price swings, flash crashes, and fraud and cybersecurity risks. Digital assets may also be more susceptible to market manipulation than securities.

The performance of each fund or funds will not reflect the specific return an investor would realize if the investor actually purchased cryptocurrency. Investors in either fund will not have any rights that cryptocurrency holders have and will not have the right to receive any redemption proceeds in the underlying cryptocurrency.

FBTC and FETH must be preceded or accompanied by its prospectus (FBTC Prospectus | FETH Prospectus). Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses.

Third-party trademarks and service marks appearing herein are property of their respective owners. Giving Account is a registered service mark of the Trustees of the Fidelity Investments Charitable Gift Fund. Fidelity and Fidelity Investments are registered service marks of FMR LLC used by the Gift Fund under license.

“Fidelity Investments” and/or “Fidelity” refers collectively to FMR LLC, a U.S. company, and its subsidiaries, including but not limited to Fidelity Management & Research Company LLC (FMR).

© 2024 FMR LLC. All rights reserved.

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