See More

Fidelity Expands ETF Offerings With Metaverse and Crypto Payments Funds

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Fidelity FMET fund will invest in Web3 companies.
  • It joins a dozen other crypto-based ETFs.
  • Frustration over SEC procrastination on a spot-BTC fund continues.
  • promo

International investment giant Fidelity plans to expand its exchange-traded fund (ETF) offerings with two new products that tap into the hottest markets in crypto.

This week, Fidelity Investments launched the Fidelity Metaverse ETF (FMET) and the Fidelity Crypto Industry and Digital Payments ETF (FDIG) which began trading on April 21.

The Metaverse fund will track and invest in Web3 firms that are “building out the future state of the Internet,” according to Bloomberg.

The FDIG fund will not offer direct exposure to cryptocurrency. However, it will invest in companies that “support the broader digital assets ecosystem,” including those involved in crypto mining and trading, blockchain, and digital payments processing.

Greg Friedman, Fidelity’s Head of ETF Management and Strategy, said that there has been increasing demand from younger 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.”

Crowded ETF Market

Fidelity is entering a crowded market, added Bloomberg, 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:  

He added that First Trust also just launched a Metaverse ETF for 70 basis points adding “it will probably have a billion dollars within a year.”

Fidelity also launched a Decentraland-based Metaverse experience called “The Fidelity Stack,” this week which aims to educate retail traders on the basics of investing.

No joy from the SEC

There has still been no response from the Securities and Exchange Commission on a long-awaited Bitcoin spot ETF. The U.S. financial regulator continues to procrastinate as the country gets left behind with other funds launching elsewhere with ease. Fidelity grew tired of waiting so launched its Bitcoin ETF in Canada instead.

This week, two Bitcoin spot funds were approved for launch in Australia. Cosmos Asset Management is preparing to launch the Cosmos Purpose Bitcoin Access ETF which will invest in the Canadian Purpose Bitcoin ETF. 21Shares and ETF Securities are also looking to launch their own Bitcoin ETFs down under.

ETF Store founder, Nate Geraci, saw the humor in the situation.

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored