- You, as an investor, can invest in the Fidelity Advantage Ether ETF™ the same way in which you can invest in other ETFs, by purchasing ETF units on the TSX.
- Fidelity will then use the proceeds to purchase ether from selected liquidity providers. The ether is then stored using our institutional-grade custodial model.
- You, the investor, own units of the ETF, which in turn owns physical ether.
- If you own the ETF Fund, you own shares in a mutual fund that invests in the ETF.
The ETF purchases ether from approved ether sources. The ETF may purchase ether through Fidelity Clearing Canada (“FCC”), the ETF’s custodian; FCC purchases its ether through Fidelity Digital Assets, our U.S. partner. Fidelity Digital Asset Services also stores the ETF’s ether as the ether sub-custodian.
Yes, the ETF and ETF Fund are eligible for registered accounts.
The ETF is offered in CAD with the ticker code FETH (CAD unhedged units), as well as in USD with the ticker code FETH.U (USD unhedged units). Each series of the ETF Fund is offered in both CAD and USD.
No, at the moment the ETF and the ETF Fund are not available in a currency neutral version.
There are several reasons why you may wish to invest in an ether ETF or mutual fund such as Fidelity Advantage Ether ETF™ and Fidelity Advantage Ether ETF Fund™ instead of buying cryptocurrency directly.
- The ETF and ETF Fund may be held in a tax-advantaged registered account.
- The ETF and ETF Fund are easy for you to buy and sell via the same platform where you trade other securities.
- There may be decreased pricing risk of individual marketplaces with the ETF and ETF Fund, as our pricing methodology takes prices from a variety of sources as input.
No, you may only buy or sell ETF units, as you would with a regular ETF on an exchange.
No. Although ether trades around the clock, the ETF will only trade during regular market hours (9:30 a.m.–4:00 p.m. ET).
Fidelity Advantage Ether ETF™ can be bought and sold any time the market is open. Use limit orders and avoid trading at the open (9:30 a.m. ET) and close (4:00 p.m. ET). For more information, please see Trading best practices.
A blockchain network consists of a network of computers running the blockchain protocol software. These computers are known as “nodes.” Nodes process and record transactions on the blockchain network. This record takes the form of a chain of blocks (each block specifies a set of transactions) called a “blockchain.”
Transactions are propagated across the network, and nodes update the blockchain with blocks of transactions over time. Each block contains a cryptographic footprint of the previous block, such that the blocks forming the blockchain are locked into a specific order, and the data in any block cannot be changed without modifying all subsequent blocks. Nodes reach agreement on the series of blocks that constitute the blockchain via a “consensus mechanism.”
There are two main types of consensus mechanisms: proof-of-work (PoW) and proof-of-stake (PoS). In PoW consensus, participants called miners expend computing power for the chance to propose blocks and earn associated rewards. In PoS consensus, participants called validators stake tokens (typically, the network’s native token) for the chance to propose blocks and earn associated rewards.
Ether is the native cryptocurrency of the Ethereum network. The open-source Ethereum software code governs the creation of ether. Ether is used to pay transaction fees on the Ethereum network.
When Ethereum launched in 2015, it was the first blockchain network with a very different vision from Bitcoin, aiming to provide a decentralized infrastructure for a diverse range of applications. Over the past seven years, the network has grown in size and has demonstrated use cases in various sectors, including finance, gaming and the metaverse. Ethereum’s potential value proposition with regard to aspects such as security, transparency, accessibility and self-custody may continue to drive growth and adoption of the network in the long run. Blockchain is an emerging and evolving technology, and the result of its future development and its long-term impact on traditional systems remain to be seen.
A detailed discussion is beyond the scope of this FAQ. Please see the five-part article series, starting with “Introduction to Ethereum,” available on fidelity.ca for an overview of the key potential investment merits and risks of ether.