Fidelity Launches Two ETFs Tracking Metaverse and Crypto Sectors
Nicholas Otieno Apr 13, 2022 02:35
The new ETF offerings enable Fidelity investors to participate in the emerging digital assets ecosystem through exposure to related equity securities.
Fidelity Investments Inc., a multinational financial services corporation based in Boston, announced Tuesday the launch of two new thematic exchange-traded funds (ETFs) - Fidelity Crypto Industry and Digital Payments ETF (FDIG) and Fidelity Metaverse ETF (FMET).
The two ETFs will track and reflect the performance of companies exposed to the metaverse and cryptocurrency sectors.
Fidelity Crypto Industry and Digital Payments ETF will not provide direct exposure to cryptocurrency. Still, they will allow investors to invest in companies that support the broader digital assets ecosystem, including those involved in crypto trading, mining and digital payments processing, and blockchain technology.
On the other hand, Fidelity Metaverse ETF will allow investors to invest in the evolution and future of the internet by providing them with access to invest in companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the metaverse, like computing hardware and components, digital infrastructure, design and engineering software, gaming technology and software, web development and content services, and smartphone and wearable technology.
Greg Friedman, Fidelity’s Head of ETF Management and Strategy, talked about the development and said: “Leveraging Fidelity’s decades of investment expertise, we are focused on growing our broad product lineup with innovative strategies that offer choice, value and new opportunities to investors. 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.” Fidelity stated that the new funds will be available on or around April 21.
Providing Investors Access to Investing in Digital Assets
Fidelity Investments launched its crypto-dedicated subsidiary, Fidelity Digital Assets, in October 2018 with the aim of offering crypto services to its institutional and sophisticated investors. Since then, Fidelity has continued to dive deeper into the crypto space than previously imagined.
Last July, Fidelity expanded the headcounts of its digital assets team as cryptocurrencies were witnessing a series of financial advisers, family offices and other investors get on board. Fidelity, which provides institutional services like digital coin custody to trade execution, wanted to expand its digital asset employees by 70% by the end of that year. The hiring spree came after the firm filed paperwork to the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin investment fund in March.
Established in 1946, Fidelity Investments Inc is a U.S. multinational financial services corporation based in Boston. The firm is the world’s fourth-largest asset management company with $4.5 trillion in assets under management and assets under administration of $11.8 trillion, as of December 2021.
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