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Fidelity adds Metaverse and Crypto Payments Funds to its ETF lineup

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.

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

Of course, 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.”

Market for Exchange-Traded Funds (ETFs) is Overcrowded

According to Bloomberg, Fidelity is entering a competitive industry, with more than a dozen crypto-themed equities ETFs currently trading. BlackRock, for example, is putting together teams to construct these “thematic” funds for a younger generation of investors.

So, WallachBeth Capital managing director Jennica Ross 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,”

Among the four other ETFs that track the Metaverse, Fidelity’s Metaverse fund has the lowest expense ratio. Bloomberg’s top ETF analyst highlighted this:

“It will probably have a billion dollars within a year,”

Then, he adds, 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 has issued a cold response.

The Securities and Exchange Commission has yet to respond to a request for a long-awaited Bitcoin spot ETF. Also, 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. So, Down under, 21Shares and ETF Securities are planning to create their own Bitcoin ETFs.

Lastly, Nate Geraci, the founder of the ETF Store, spotted the irony in the situation.

Related Posts – XRP Price Goes Up After Unexpected Reappearance On Coinbase

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