Fidelity Ethereum Fund

The Sponsor expects to commence the Trust’s staking activities as soon as practicable following the effective date of the Registration Statement. Through the staking program, the Sponsor utilizes the services of the Custodians to stake, or cause to be staked, the Trust’s ether with one or more trusted node operators (each, a “Node Operator”). The Node Operators facilitate staking by establishing validator nodes and delegating the Trust’s ether to such nodes on the Ethereum network, which entitles the Trust to receive staking rewards. The Custodians maintain exclusive possession and control of the private keys associated with any staked ether at all times. The Trust retains 85% of all staking rewards received, with the remaining 15% paid as fees shared among the Sponsor, the Custodians, and the Node Operators.

In connection with the commencement of the Trust’s staking program, the Trust intends to make quarterly cash distributions of income generated from its staking activities to holders of the Trust’s shares of beneficial interest. The distributions will consist of net staking income after deduction of any Trust expenses. To fund the cash distributions, the Trust may sell staking rewards and/or a portion of its ether, which may affect the Trust’s exposure to ether and the market price and/or net asset value of the Shares.

For a complete description of the Trust’s staking program, including the risks associated with staking activities, see the Trust’s Registration Statement filed with the Securities and Exchange Commission, the disclosure of which is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.