Fidelity Investments plans to add two new exchange-traded funds (ETFs) to its exchange-traded fund (ETF) lineup that will tap into the hottest crypto markets.
Fidelity Investments started trading the Fidelity Metaverse ETF (FMET) and the Fidelity Crypto Industry and Digital Payments ETF (FDIG) on April 21.
The Metaverse fund will track and invest in Web3 companies that are “building out the future state of the Internet.”
The FDIG fund will not have any direct bitcoin exposure. It would, however, invest in businesses that “serve the broader digital assets ecosystem,” such as crypto mining and trading, blockchain, and digital payment processing.
According to Greg Friedman, Fidelity’s Head of ETF Management and Strategy, younger investors are becoming more interested:
“We continue to see demand, particularly from young investors, for access to the rapidly growing industries in the digital ecosystem, and these two thematic ETFs offer investors exposure in a familiar investment vehicle.”
Crowded ETF Market Fidelity
Fidelity is entering a crowded market, which reported that there are already more than a dozen crypto-themed equity ETFs trading. Firms such as BlackRock are also building teams to develop these “thematic” funds for a younger generation of investors.
Jennica Ross, managing director at WallachBeth Capital, told the outlet:
“People are increasingly becoming familiar with what the metaverse is, and what it could be in the future. Naturally, investors are looking for ways to play this,”
Fidelity’s Metaverse fund is entering the market with the lowest fee among the four other ETFs that track the Metaverse. This was noted by Bloomberg’s senior ETF analyst:
“It will probably have a billion dollars within a year,” he added, referring to First Trust’s recent launch of a Metaverse ETF for 70 basis points.
This week, Fidelity also released “The Fidelity Stack,” a Decentraland-based Metaverse experience aimed at educating regular traders on the fundamentals of investing.
The SEC hasn’t been very helpful
The Securities and Exchange Commission has yet to respond to a request for a long-awaited Bitcoin spot ETF. The United States’ financial regulator continues to delay, allowing other funds to launch with ease in other countries. Fidelity had had enough of waiting and decided to launch its Bitcoin ETF in Canada instead.
Two Bitcoin spot funds have been cleared for start in Australia this week. The Cosmos Purpose Bitcoin Access ETF will invest in the Canadian Purpose Bitcoin ETF, according to Cosmos Asset Management. Down under, 21Shares and ETF Securities are planning to create their own Bitcoin ETFs.
Nate Geraci, the founder of the ETF Store, spotted the irony in the situation.
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