Fidelity, the world's fourth-largest asset manager, has announced plans to seed its forthcoming Ethereum ETF with $4.7 million, according to a recent regulatory filing. The funds were used to purchase 1,250 ETH on June 4, securing Fidelity 125,000 shares for $38 each. The move demonstrates the firm's confidence in the fund and provides initial liquidity for buyers.

Comparatively, when Fidelity launched its Bitcoin ETF in January, it seeded the fund with $20 million. Other competitors, such as BlackRock and Bitwise, have provided seed funds worth $10 million and $200 million respectively.

Despite the reveal of seed numbers, few applicants have disclosed their management fees for their Ethereum funds. Franklin Templeton is one of the few, indicating a fee of 0.19%, making it the cheapest Bitcoin or Ethereum ETF so far.

Analysts predict Ethereum ETFs will not surpass Bitcoin's, but will significantly outperform the average new ETF product. Some are more optimistic, with K33 Research predicting the ETFs will achieve 28% of Bitcoin products' performance, equating to $4 billion in five months.