Fidelity Ethereum Fund Liquidation Value

Fidelity Ethereum Fund (FETH) is a Delaware Statutory Trust grantor trust holding ether as its sole investment. The trust is structured as an exchange-traded product; all assets are ether held in custody by Fidelity Digital Assets, N.A. There are no operational liabilities of substance, no leverage, no derivatives, no leases, no inventory, no intangibles, and no PP&E. The liquidation posture is therefore structurally simple and highly favorable relative to a typical operating company: the asset side is entirely liquid digital assets marked at Level 1 fair value, and the liability stack is trivial.

As of March 31, 2026, total net assets (equity) were $1.21 billion, down sharply from $2.21 billion at December 31, 2025. The decline is driven by two factors: (1) net share redemptions of 16.7 million shares during the quarter, representing a net outflow of approximately $335 million in paid-in capital, and (2) a $662 million net loss from operations, comprising $277 million realized loss on ether sold to fund redemptions and $407 million unrealized depreciation as ETH/USD fell 29.3% from $2,971.55 to $2,101.84 over the quarter. The trust held 576,821 ETH at period end versus 743,795 ETH at December 31, 2025, a reduction of 22.4%.

Under the liquidation lens, recovery to equity is essentially equivalent to the fair value of the ether holding minus the trivial liability stack. Ether is classified as a Level 1 asset (exchange-traded price from the principal market); no haircut adjustment for illiquidity is warranted at this scale, though the position is subject to crypto market volatility. Total liabilities are $1.83 million: a $264K accrued sponsor fee payable and a $1.57 million payable for investment purchases. These are de minimis relative to the $1.21 billion asset base. There are no long-term debt obligations, no operating leases, no pension liabilities, no production commitments, and no off-balance-sheet arrangements.

The sponsor fee is paid in ether at 0.25% per annum of Ether Holdings; this is an ongoing obligation but extinguishes at windup and does not create a contingent liability on liquidation beyond the currently accrued $264K. The filing discloses general indemnification provisions in service contracts, but no amounts have been recorded and none are expected to be material.

Compared to the prior filing (10-K, December 31, 2025), the key change is the $1.0 billion reduction in total net assets ($2.21B to $1.21B), driven equally by ether price depreciation and net redemption outflows. No structural changes to the trust, its counterparties, or its fee arrangements occurred during the period. The GAAP NAV per share fell from $29.64 to $20.95. Subsequent events: none identified by management.