Fidelity Expands Crypto Suite With Ethereum Index Fund

The asset manager raised $5 million in its Ethereum Index Fund so far, a filing from Tuesday shows

article-image

Source: Shutterstock

share

key takeaways

  • Wealthy individuals who can invest a minimum of $50,000 each have access to the fund
  • Ethereum’s Merge believed to have changed investment case for ether

Fidelity is offering customers exposure to ether as the brokerage broadens its crypto offerings in the face of a recent slump in the market. The Boston-based finance giant has launched an Ethereum Index fund, a SEC filing from Tuesday showed. 

The fund has already raised $5 million since sales began on Sept. 26. But just one unnamed party appears to have invested in the offering so far. 

Only investors who are able to provide a minimum investment of $50,000 are authorized access to the fund. Crypto index funds are passively managed and track the performance of an asset, like ether in Fidelity’s latest product.

Ethereum’s Merge has drawn the attention of industry participants, with many paying closer attention to the blockchain’s growing potential, Ben Dean, director of digital assets at WisdomTree in Europe, told Blockworks.

Ethereum’s move to proof-of-stake “completely changes the investment case for ether,” Dean said.

WisdomTree has launched index products tracking major cryptoassets in Europe, including ether.

Blockworks recently reported that Fidelity’s digital assets arm was looking to offer its institutional investors the ability to buy, trade and sell custody ether by the end of the year. Jack Neureuter, a research analyst at Fidelity Digital Assets, agreed that the Merge is “likely to increase the overall levels of interest in the asset for many institutional investors, particularly over a long enough timeframe.”

Fidelity, immersed in crypto since 2018, launched the Wise Origin Bitcoin Fund in August 2020, enabling customers the ability to gain exposure to bitcoin. That fund garnered $102 million within just nine months of its launch. The firm also reportedly plans to offer bitcoin trading on its platform to retail clients.

A 2021 report by Fidelity states that 40% of crypto hedge funds and venture capitalists were interested in gaining exposure to digital assets.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit