Financial Service Giant Fidelity Expands Crypto Offerings with Ethereum Index Fund
October 5, 2022 10:38 AM
To give its customers exposure to ether (ETH), the second-largest cryptocurrency by market capitalization, Fidelity has launched the Ethereum Index Fund.
According to a filing with the U.S. Securities and Exchange Commission, the fund has collected around $5 million in capital since sales began on September 26. The starting point for an investment is $50,000.
In 2018, Fidelity introduced Fidelity Digital Assets, a cryptocurrency-specific institutional custody and trading platform. A pair of exchange-traded crypto funds focused on the "metaverse" and "digital payments" are available from the company.
A source familiar with the Fidelity Ethereum Index Fund said that the fund is restricted to accredited investors and will passively, directly own ether to track the performance of the Fidelity Ethereum Index PR benchmark. After the release of the Wise Origin Bitcoin Index Fund I in 2020, the digital asset management company Fidelity Digital Assets has now released an Ethereum fund as well.
As the market for digital assets develops, Fidelity sees the need for a variety of products and solutions to help customers gain exposure in a way that is suitable for their individual financial goals and risk tolerance. A Fidelity representative stated,
"We have continued to see client demand for exposure to digital assets beyond bitcoin."
A month ago, it was reported that retail brokerage firm Fidelity was considering allowing customers to trade cryptocurrencies within their platform.