Fidelity Investments is launching two crypto-focused exchange-traded funds to try to grab flows from rivals in the nascent space.
The Fidelity Metaverse ETF (FMET) and the Fidelity Crypto Industry and Digital Payments ETF (FDIG) began trading on Thursday. FMET will primarily invest in companies involved in building out the “future state of the Internet.” FDIG will track blockchain and digital payment processing companies, according to a statement.
Fidelity steps into an increasingly crowded market with more than a dozen crypto-themed equity ETFs already trading. The firm had hoped to launch a spot Bitcoin ETF, but the Securities and Exchange Commission rejected its application this year and has not approved proposals by other firms for similar products.
Fidelity is constantly innovating as we re-imagine what it looks like to engage with customers as a trusted financial services company in the future,” said Kathryn Condon, head of marketing channels and emerging platforms at Fidelity. “As Web 3.0 takes shape, Fidelity is excited to bring our expertise in financial education to this new virtual space.”
In addition to providing a primer on different types of investment products, including ETFs, the experience celebrates the launch of Fidelity Metaverse ETF (FMET), a new thematic ETF that provides access to companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the metaverse.
This ETF, along with others announced last week, is a self-indexed ETF using Fidelity’s proprietary indices, constructed by Fidelity’s quantitative investing team, to identify equity securities that offer exposure to these rapidly growing industries.
“The way we engage with each other and with our money is rapidly changing, whether that’s through the rise of blockchain technology or development of a new digital universe,” added Condon. “Our foray into the metaverse is designed with this in mind.”
The experience joins the Fidelity Reddit page and Fidelity’s TikTok account as some of the many resources for younger investors to improve their financial knowledge through informative content and actionable insights. To help investors better understand the metaverse and its associated investment opportunities, this Viewpoints article provides background: Enter the Metaverse.
“We’re part of a dynamic shift as young people take control of their finances in new ways,” said David Dintenfass, chief marketing officer and head of emerging customers at Fidelity. “The next generation seeks out financial education in all the places they spend time, whether physical or virtual. We’re committed to serve customers in these decentralized communities as they transform and grow.”