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Fidelity Investments expands its offerings by focusing on the metaverse and ETFs

The international investment firm Fidelity Investments has decided to invest in companies from the metaverse. Fidelity Investments has now launched four new exchange-traded funds (ETFs) that would focus on two new products to take advantage of the nascent Web3 space.

ETFs will focus on three broad criteria, namely cryptocurrencies, metaverse and environment, society and governance (ESG).

The Fidelity Metaverse ETF (Ticker FMET) and the Fidelity Crypto Industry and Digital Payments (FDIG) ETF went live on Thursday, April 21.

The Fidelity Crypto Industry and Digital Payments ETF does not provide direct access to cryptocurrencies, but will invest in the companies that support the digital asset industry.

Fidelity Investments will be responsible for building and contributing to the “future state of the Internet”.

Competition in the already crowded metaverse?

Fidelity is entering an already saturated market, where a dozen ETFs are already trading on the market. In addition, there are many companies that have decided to launch “themed” funds for younger generations.

We continue to see demand, particularly from young investors, to access fast-growing industries in the digital ecosystem, and these two themed ETFs offer investors exposure in a family-friendly investment vehicle, said Greg Friedman, Managing Director and Chief ETF Strategy Officer at Fidelity. .

As mentioned above, younger generations have become increasingly familiar with the metaverse.

Along with that, a lot of awareness of where the metaverse could be headed has led the younger generation to explore further.

BlackRock Inc. is one of those companies that has focused on “themed” funds that cater to the younger population.

Fidelity may face stiff competition when it comes to the themed environment, with many companies already operating in the space. However, the size and scale of the company will likely give it an edge over its immediate competitors.

Bloomberg Senior ETF Analyst Eric Balchunas also mentions in his tweet that the investment firm reportedly entered the market at the lowest rate among the other four ETFs tracking the Metaverse.

Fidelity also recently released a Decentraland-based metaverse called the “Fidelity Stack”. This is intended to educate retail investors on the basics of investing.

Related Reading | How Crypto Company Circle Announces $400 Million Backed by Giants BlackRock and Fidelity

Fidelity also intended to launch a Bitcoin Spot ETF

Fidelity continued to push this revolutionary idea to democratize the investments that are ETFs. However, the Securities and Exchange Commission failed to comply.

The US financial regulator has yet to make a decision on this, which is now making the funds launch in other countries with much less difficulty.

For example, Fidelity has just successfully launched the ETF in Canada.

Australia would also receive two Bitcoin Spot ETFs that have been approved for launch in the country.

The asset manager continues to prepare to launch the Cosmos Purpose Bitcoin Access ETF, which refers to investing in the Canadian Purpose Bitcoin ETF.

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Fidelity Investments Launched a Physical Bitcoin ETP in Europe

Fidelity Investments has launched a physical bitcoin exchange-traded (ETP) product in what it says is the growing demand for digital assets among European investors. The fund is listed on Xetra in Frankfurt and will begin trading on Six in Zurich in a few weeks.

The Fidelity ETP comes three months after Invesco launched its bitcoin ETP following increased interest in cryptocurrency investments among asset managers.

The ETP comes after the UK Financial Conduct Authority granted Fidelity Digital Assets an official registration for its digital trading and asset custody business in late 2021.

Previously, Fidelity Digital Assets was listed as a temporary member on the FCA registry, but has now been moved to the FCA permanent registry.

In December 2021, Fidelity Investments launched a Canadian-based physical bitcoin ETF, which currently has around $30 million in assets.

Bitcoin ETP physical loyalty

Fidelity’s physical Bitcoin ETP will be available to institutional and professional investors in Europe and will be domiciled in Germany. However, Fidelity Digital Assets, which is the US-based digital assets arm of Fidelity Investments, will be the custodian of the ETP.

Fidelity Investments head Nick King said the ETP launch was an important step in the company’s ETP offering and the first to offer digital asset products.

The ETP launched with approximately $6 million in assets and will have an ongoing charge of 0.75%.

Fidelity’s managing director for Europe, Christian Staub, said:

“The underlying distributed ledger technology has the potential to revolutionize the financial system over time and disrupt many parts of the financial world with profound implications for investors.”

Fidelity Digital Assets recently conducted a survey that showed that 70% of institutional investors expected to invest in digital assets soon. Additionally, over 90% of those surveyed said they want digital assets that have an allocation within the next five years.