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
Source: Shutterstock
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.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
