Fidelity Submits Two New ETF Applications Focusing on Crypto Sector and Metaverse

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Odaily Translator | Nian Yin Si Tang

Summary:

Summary:

- Following BlackRock's blockchain ETF application last week, Fidelity also submitted an ETF application related to the encryption industry this week;

- Meanwhile, Subversive Capital's Metaverse ETF started trading on Thursday, with other ETFs expected to launch in the coming weeks.

Fidelity Investments is looking to launch a new ETF aimed at investing in companies involved in the Metaverse and the broader crypto industry.

According to a disclosure on Thursday, the financial services giant filed a filing with the U.S. Securities and Exchange Commission (SEC) regarding the Fidelity Crypto Industry and Digital Payments ETF (Fidelity Crypto Industry and Digital Payments ETF) and the Fidelity Metaverse ETF (Fidelity Metaverse ETF). Metaverse ETF)" application.According to the fund'spreliminary prospectus

, the new crypto sector fund will primarily invest in stocks of companies included in the Fidelity index "engaged in activities related to cryptocurrencies, blockchain technology, and digital payment processing."Just last week, documents showed that the global asset management giantBlackRock is planning an ETF focused on blockchain technology

. According to the application documents submitted by BlackRock's iShares to the US SEC, the iShares Blockchain and Tech ETF will track the investment results of the NYSE FactSet Global Blockchain Technology Index. The index is composed of companies involved in the development and deployment of encryption technologies in the United States and abroad.

According to the filing, the proposed fund plans to invest at least 80% of its assets in stocks in the index. It can allocate up to 20% of funds in futures, options, swaps, cash and cash equivalents. But the fund will not invest in cryptocurrencies directly or indirectly through cryptocurrency derivatives. In addition, the disclosed information did not indicate the planned product transaction code or fee ratio.

Industry watchers expect the plan could lead to big rivals following suit. Sure enough, Fidelity was quick to act.

Likewise, Fidelity ETFs will not invest directly in digital assets, nor will they invest indirectly through crypto derivatives.another document says

, a proposed Metaverse ETF that also tracks the Fidelity index, and would have at least 80 percent of its assets assigned to the securities of companies that "develop, manufacture, distribute, or sell products or services related to the establishment and realization of the Metaverse."Thursday, Subversive Capital. According to reports, the ETF invests in the equity securities of global listed companies (not less than 80% of net assets) that provide services and products for metaverse infrastructure and applications. The market capitalization of these companies is between US$250 million and US$1 trillion. also,First TrustandProSharesand

Other similar products are expected to be launched in the coming months.

On the same day that the Fidelity ETF plan was launched, the US SECrejectreject

Applied for Fidelity’s Bitcoin spot ETF (Wise Origin Bitcoin Trust), citing “prevention of fraudulent and manipulative practices and protection of investors and the public interest.” It is reported that the SEC rejected the bitcoin spot ETF applications of First Trust and Skybridge Capital last week for the same reason.

“While we are disappointed by the outcome of the SEC’s deliberations, we reiterate our belief that the market is ready for physical bitcoin exchange-traded products and look forward to continuing constructive dialogue with the SEC,” a Fidelity representative said in a statement. told Blockworks in an email.

The spokesperson added that the company believes that the bitcoin spot and futures markets are mature enough to meet the SEC’s standards, citing gold, silver, platinum, palladium and copper products currently traded.

The firm still hasn’t given up on launching a physical-backed bitcoin ETF in the US. Meanwhile, Fidelity's Canadian subsidiary has recentlyroll outroll outA spot bitcoin ETF was launched.this product