Fidelity Ethereum Fund has announced new custodial agreements and a staking program, according to a recent SEC filing. The move comes as the fund navigates a sharp contraction in assets and a competitive landscape where rival products have already activated staking distributions.
For the six months ended June 30, 2026, Fidelity Ethereum Fund's net assets fell from $2.21 billion to $758.6 million, a decline driven by both ether price weakness and heavy net redemptions. NAV per share dropped from $29.64 to $15.87, a total return at NAV of -46.46%. Ether in custody declined from 743,795 to 476,311 units as 46,075,000 shares were created and 72,825,000 redeemed. The fund recorded a $917.5 million net decrease in net assets from operations, including $404.0 million of realized losses on ether sold for redemptions and $537.6 million of unrealized depreciation.
The fund's Q2 2026 results showed a net decrease in net assets from operations of $255.1 million, compared with a $247.2 million increase in the year-ago quarter. The unified 0.25% sponsor fee remained unchanged. Shares are created and redeemed only with authorized participants in 25,000-share baskets, exchanged for ether or cash.
Fidelity Digital Assets, the fund's primary custodian since launch, holds a New York Department of Financial Services trust charter granted in 2019. The new agreements formalize custodial services with Anchorage Digital, BitGo, and Fidelity Digital Assets, establishing rights and responsibilities for the custodian, sponsor, and trust regarding ether in custody accounts.