The Fidelity fund will give clients exposure to the metaverse and digital payment-related companies.
Fidelity Investments has announced plans to launch exchange-traded funds (ETFs) that will enable investors to gain exposure to the broader world of crypto assets. According to a press release, the world’s fourth-largest asset management firm will roll out seven new funds sometime around April 21 for individual investors and financial advisers to purchase commission-free through Fidelity’s online brokerage platforms.
The firm said in its statement that the available would be two thematic ETFs. Fidelity Metaverse ETF (FMET) will typically invest at least 80% of assets in securities included in the Fidelity Metaverse Index, along with depositary receipts representing securities included in the index.
The Fidelity Metaverse ETF
The Fidelity Crypto Industry and Digital Payments ETF (DIG) will have similar exposure to crypto, blockchain technology, and digital payments processing companies. Greg Friedman, Fidelity’s head of ETF management and strategy, said in the statement:
“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.”
The firm’s digital division, Fidelity Digital Assets, launched in 2018 and featured custody and trade execution for institutional investors. The firm, which has about $4.2 trillion in assets under management, filed an application for a metaverse ETF late in January. The same month, the U.S. Securities and Exchange Commission refused to approve a Fidelity spot Bitcoin ETF in the U.S., though the firm’s Canadian arm has one listed in Canada.
The mutual funds will offer both retail and adviser share classes
Fidelity Metaverse ETF allows investors to invest in businesses involved in enabling the metaverse; computing hardware and components, digital infrastructure, design, and engineering software, gaming technology and software, web development, and more.
The five new sustainable fixed income mutual funds and ETFs will use Fidelity’s proprietary ESG ratings frameworks to weigh an issuer’s sustainable business practices. The mutual funds will offer both retail and adviser share classes. Pam Holding, co-head of equity and head of sustainable investing at Fidelity Investments, said:
“Fidelity continues to grow its sustainable investing lineup, with a range of equity, fixed income, and asset allocation strategies, as investors continue to seek opportunities to invest alongside their values and influence positive change in the world.”
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.