Shalini Nagarajan

Boston finance giant Fidelity Investments has filed trademark applications hinting at a concerted effort to service customers in a crypto-powered metaverse.



Fidelity filed three patent applications last week related to marketing, placements, recruiting and referral services for investment and financial planning across the metaverse “and other virtual worlds.”



Provisions for a non-fungible token (NFT) marketplace were also included in one of the patents, although not much detail was provided. Fidelity is one of the largest asset managers in the world, <a href="https://www.fidelity.com/about-fidelity/our-company/asset-management" target="_blank" rel="noreferrer noopener">handling</a> $3.6 trillion in discretionary assets as of Sept. 30.



Fidelity didn’t mention which metaverse it’s eyeing, nor did it specify whether it intends to create its own virtual world. Mike Kondoudis, a USPTO licensed trademark attorney, first shared Fidelity’s plans in a Monday <a href="https://twitter.com/KondoudisLaw/status/1607455956765659136" target="_blank" rel="noreferrer noopener">tweet</a>.



And while patent applications don’t automatically translate to new product offerings, Fidelity’s recent filings describe metaverse services for:



<ul class="wp-block-list">
<li>crypto trading,&nbsp;</li>



<li>mutual fund and retirement investment,&nbsp;</li>



<li>money management,&nbsp;</li>



<li>charitable fund-raising services,&nbsp;</li>



<li>life insurance and annuity underwriting,&nbsp;</li>



<li>employer stock purchase plans,&nbsp;</li>



<li>employee pension plans and&nbsp;</li>



<li>frequent flyer award accounts.</li>
</ul>



There would also be investment-related classes, workshops, seminars and conferences in the metaverse. Fidelity didn’t return Blockworks’ request for comment by press time.



By filing a design patent, corporations in the US who plan to offer services in the metaverse are protected when it comes to their virtual product design.&nbsp;



USPTO has previously <a href="https://www.jdsupra.com/legalnews/trademarks-in-the-metaverse-1465520/" target="_blank" rel="noreferrer noopener">refused trademark applications</a> with a metaverse focus as they may have been too similar to ones that were previously registered.



<h3 class="wp-block-heading">Fidelity has competition in the metaverse</h3>



Fidelity hasn’t been shy about crypto of late. Its launch of an <a href="https://blockworks.co/news/fidelity-expands-crypto-suite-with-ethereum-index-fund" target="_blank" rel="noreferrer noopener">Ethereum index fund</a> in October showed intent to broaden its digital asset scope despite a bearish market, so too did <a href="https://www.theblock.co/post/190286/ready-to-trade-fidelity-finally-opens-retail-crypto-accounts" target="_blank" rel="noreferrer noopener">opening</a> retail crypto trading accounts for bitcoin and ether in November.



Fidelity also <a href="https://www.fidelity.com/social-media/metaverse" target="_blank" rel="noreferrer noopener">deployed</a> an &#8220;immersive educational metaverse experience&#8221; in Ethereum-centric virtual world Decentraland in April, a building complete with a dancefloor and rooftop garden. 



But the firm will face stiff competition from major banks. JPMorgan in February <a href="https://blockworks.co/news/jpmorgan-enters-the-metaverse-with-virtual-decentraland-lounge" target="_blank" rel="noreferrer noopener">launched a lounge</a> promoting its permissioned blockchain network Onyx, also in Decentraland.



Union Bank of India <a href="https://www.unionbankofindia.co.in/english/uni-verse.aspx" target="_blank" rel="noreferrer noopener">debuted</a> its own metaverse hangout in July, opting instead for rival platform The Sandbox. Singapore-based DBS then <a href="https://forkast.news/asia-banking-giant-dbs-enters-sandbox-metaverse/" target="_blank" rel="noreferrer noopener">announced</a> it would build out services from within The Sandbox in September.



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Decentraland

Fidelity Trademarks Hint at Big Banks Vying for Metaverse Customers

Sebastian Sinclair

Three US Senators have urged Fidelity to stop its 401(k) sponsor partners from offering bitcoin exposure — likening crypto investing to “catching lightning in a bottle.”



In a Monday <a href="https://www.durbin.senate.gov/imo/media/doc/letter_to_fidelity_investments_ceo.pdf" target="_blank" rel="noreferrer noopener">letter penned</a> to Fidelity CEO Abigail Johnson, Democrat Senators Elizabeth Warren, Dick Durbin and Tina Smith argue that crypto markets have become riskier following <a href="https://blockworks.co/news/ftx-bankrupt-hacked-investigated-a-timeline-of-events" target="_blank" rel="noreferrer noopener">FTX’s sudden collapse</a>, making bitcoin unsuitable for retirement plans.



The Senators described the crypto industry as “full of charismatic wunderkinds, opportunistic fraudsters and self-proclaimed investment advisors promoting financial products with little to no transparency.”



“As a result, the ill-advised, deceptive, and potentially illegal actions of a few have a direct impact on the valuation of bitcoin and other digital assets,” they said.&nbsp;Durbin <a href="https://blockworks.co/news/us-politicians-donate-bankman-fried-cash-to-charity" target="_blank" rel="noreferrer noopener">received</a> $2,900 in campaign contributions from disgraced FTX CEO Sam Bankman-Fried, money he reportedly says will be donated to charity.



The letter follows similar pleas in <a href="https://www.warren.senate.gov/newsroom/press-releases/warren-questions-fidelity-on-plans-to-allow-bitcoin-investments-for-401k-plans" target="_blank" rel="noreferrer noopener">May</a> and <a href="https://www.durbin.senate.gov/imo/media/doc/durbin_bitcoin_72622.pdf" target="_blank" rel="noreferrer noopener">July</a>. Senators Warren and Smith have previously cited the cryptocurrency sector’s murky valuations as reason for caution, labeling investing in digital assets a “speculative gamble.”



Boston-based Fidelity began allowing employees to put as much as 20% of their retirement savings into bitcoin exposure this fall.



The crypto industry considered the move a strong sign of shifting institutional sentiment toward the 12 year old asset class, although bitcoin has shed some 60% of its value since Fidelity flagged the 401(k) move in late April.



Fidelity, which overall <a href="https://fidelityinvestments2020news.q4web.com/press-releases/news-details/2022/Fidelity-Q3-2022-Retirement-Analysis-Despite-Continued-Volatility-Retirement-Fundamentals-Remain-Sound/default.aspx" target="_blank" rel="noreferrer noopener">boasts</a> some $9.6 trillion in assets under administration, is the largest individual retirement plan (IRA) provider in the US — supporting more than 35 million IRA, 401(k) and 403(b) retirement accounts. As of 2020, FIdelity <a href="https://www.nytimes.com/2022/04/26/business/crypto-401k-fidelity.html" target="_blank" rel="noreferrer noopener">controlled</a> more than a third of the retirement fund market in the US, maintaining $2.4 trillion in 401(k) assets.



“Any investment strategy based on catching lightning in a bottle, or motivated by the fear of missing out, is doomed to fail,” the Senators said. 



“By many measures, we are already in a retirement security crisis, and it should not be made worse by exposing retirement savings to unnecessary risk.”



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401(k)

Senators Once Again Ask Fidelity to Stop Offering Bitcoin in 401(k)s

Ben Strack

<div id="highlights-block_629638d78464e" class="highlights">
 <ul>
 <li>Hiring spree to help the business expand its support for assets other than bitcoin, such as ether</li>
 <li>Planned growth follows Fidelity revealing that it would allow individuals to allocate a portion of their retirement savings to bitcoin</li>
 </ul>
 
</div>



Fidelity Investments’ digital asset arm is seeking to double its headcount by the end of the year amid its push to expand its support for assets other than bitcoin.



The company, which currently employs more than 200 people, is seeking to add 210 workers to its force, a Fidelity spokesperson told Blockworks. This includes about 100 client service roles, 50 custody operations jobs and about 30 roles each in execution services and technology building.



The pending hiring spree will help the business expand its support for assets other than bitcoin, such as ether, as well as 24/7 trading, customer service and cloud migration, a representative said. It will also allow the company to better provide services to clients, such as new compliance and tax reporting tools, as the business grows.&nbsp;



Founded in 2018, Fidelity Digital Assets is a subsidiary of Fidelity Investments, which had assets under administration of $11.3 trillion, as of March 31. It has a digital asset custody and trading platform designed for institutions and an asset management business offering crypto investment products.



Some of the upcoming hires will fall under the leadership of Peter Jubber and Chris Tyrer, who have recently transitioned to new roles.



The company revealed internally last week that Jubber, formerly the head of its distinct digital asset management business, now leads enterprise engagement for Fidelity Digital Assets. He will focus on boosting education for associates as the firm seeks to develop a “holistic” digital assets offering.



Tyrer, who has led Fidelity’s international business, now also oversees the digital asset management offering within Fidelity Digital Assets.



“These shifts won’t have any impact on Fidelity Digital Assets’ clients but were made to align with the needs of the business as it continues to grow,” a Fidelity spokesperson said.



Fidelity has made headlines for its crypto initiatives in recent months. In addition to <a href="https://cms.blockworks.co/fidelity-launches-metaverse-experience-in-tandem-with-new-etfs/" target="_blank" rel="noreferrer noopener">debuting</a> a metaverse experience and two crypto-related ETFs, the company <a href="https://cms.blockworks.co/fidelity-delves-deeper-into-crypto-by-allowing-bitcoin-in-401ks/" target="_blank" rel="noreferrer noopener">announced last month</a> that it would allow individuals to allocate a portion of their retirement savings to bitcoin through its 401(k) platform.



Sen. Elizabeth Warren, D-Mass., and Sen. Tina Smith, D-Minn., wrote a letter to Fidelity CEO Abigail Johnson, calling crypt investments “a risky and speculative gamble.”&nbsp;



Fidelity privately responded to the senators by their recommended deadline of May 18 to address some of their concerns, a spokesperson told Blockworks.



“The [Digital Asset Account] offering features several institutional consumer safeguards including but not limited to, excessive trading oversight, investing limits, transparency, market-leading education, and cyber-security features,” the representative said. “Fidelity looks forward to continuing the dialogue on this exciting offering with federal regulators and policymakers consistent with our approach to many new services we offer our customers.”



Fidelity Digital Assets’ efforts to double the company’s headcount come after Tom Jessop, president of Fidelity Digital Assets, said in an interview with Bloomberg last July that the company <a href="https://cms.blockworks.co/fidelitys-digital-assets-division-reportedly-plans-to-boost-staff/" target="_blank" rel="noreferrer noopener">was hoping to add 100 people</a> specializing in technology and operations. 



Jessop noted at the time that the company wants to “be ahead of [ether] demand,” and allow crypto trades throughout more of the week.



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Abigail Johnson

Fidelity Digital Assets To Double Headcount by End of Year

<div id="highlights-block_6261b3ef731a1" class="highlights">
 <ul>
 <li>Users learn the basics of ETF investing while exploring Fidelity’s building in Decentraland</li>
 <li>The announcement coincided with the launch of Fidelity’s crypto industry and metaverse ETFs</li>
 </ul>
 
</div>



Brokerage firm Fidelity Investments launched its financial education experience in the metaverse in the hopes of attracting a new generation of customers.



Decentraland users are encouraged to learn the basics of ETF investing while exploring the <a href="https://play.decentraland.org/?position=-27,28" target="_blank" rel="noreferrer noopener">Fidelity Stack</a>, a multi-story building that features a lobby, dance floor and rooftop sky garden.



“We’re part of a dynamic shift as young people take control of their finances in new ways,” David Dintenfass, Fidelity’s chief marketing officer and head of emerging customers, said in a statement. “The next generation seeks out financial education in all the places they spend time, whether physical or virtual.”



Bank analysts at Citi <a href="https://cms.blockworks.co/citi-projects-metaverse-to-capture-five-billion-users-and-up-to-13b/" target="_blank" rel="noreferrer noopener">recently projected</a> the Web3 economy to reach between $8 trillion and $13 trillion by 2030.



JPMorgan <a href="https://cms.blockworks.co/jpmorgan-enters-the-metaverse-with-virtual-decentraland-lounge/" target="_blank" rel="noreferrer noopener">unveiled</a> a virtual lounge in Decentraland in February, and financial services provider HSBC <a href="https://cms.blockworks.co/hsbc-buys-virtual-real-estate-in-sandbox-metaverse/" target="_blank" rel="noreferrer noopener">revealed last month</a> it would acquire virtual real estate in The Sandbox metaverse.



Fidelity seeking to offer educational resources to younger investors comes after a <a href="https://cms.blockworks.co/t-rowe-price-survey-40-of-kids-think-crypto-is-future-of-investing/" target="_blank" rel="noreferrer noopener">survey published earlier this month</a> found that kids are more familiar with crypto than their parents. The study, conducted by T. Rowe Price, found that 40% of the children surveyed believe crypto is the future of investing.



Investopedia’s <a href="https://www.investopedia.com/financial-literacy-survey-5223919" target="_blank" rel="noreferrer noopener">2022 Financial Literacy Survey</a> found that while crypto investments are popular among Gen Z, millennial, and Gen X investors, 49% of Americans have only a rudimentary understanding of digital currency.



Fidelity’s metaverse experience launch came the same day that the company listed its Crypto Industry and Digital Payments ETF (FDIG) and its Metaverse ETF (FMET) after <a href="https://cms.blockworks.co/fidelity-plots-crypto-etfs/" target="_blank" rel="noreferrer noopener">filing for the funds</a> in January.



FDIG and FMET, which track Fidelity indices, have expense ratios of 39 basis points.



“These are obviously two topics that are hot and of interest to our clients, and we want to be able to solve their needs,” Greg Friedman, Fidelity’s head of ETF management and strategy, told Blockworks during last week’s <a href="https://cms.blockworks.co/crypto-and-tradfi-collide-at-miami-etf-conference/" target="_blank" rel="noreferrer noopener">Exchange ETF conference</a> in Miami. “Crypto is just another asset class.”



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Fidelity Launches Metaverse Experience in Tandem With New ETFs

<div id="highlights-block_621fe7d1b1390" class="highlights">
 <ul>
 <li>The filing by Charles Schwab’s asset management arm follows similar proposals by competitors BlackRock and Fidelity Investments</li>
 <li>Charles Schwab CEO Walt Bettinger called cryptocurrencies “hard to ignore” in January</li>
 </ul>
 
</div>



Charles Schwab’s asset management arm is looking to join the crypto ETF fray, following industry heavyweights like BlackRock and Fidelity Investments.



The fund group filed to launch an index-tracking ETF offering exposure to companies involved with digital assets, as well as business activities connected to blockchain technology, according to <a href="https://www.sec.gov/Archives/edgar/data/1454889/000110465922029220/tm226059d1_485apos.htm" target="_blank" rel="noreferrer noopener">a Wednesday regulatory disclosure</a>.



The proposed Schwab Crypto Economy ETF plans to invest at least 80% of net assets in stocks included in the Schwab Crypto Economy Index. The filing did not list a ticker or expense ratio.



The fund would not invest in digital assets directly.



A spokesperson for the company did not immediately return a request for comment.



Charles Schwab CEO Walt Bettinger told Bloomberg in January <a href="https://cms.blockworks.co/ceo-of-financial-services-giant-charles-schwab-calls-cryptocurrencies-hard-to-ignore/" target="_blank" rel="noreferrer noopener">cryptocurrencies are “hard to ignore”</a> and “fairly significant.”



A Schwab spokesperson <a href="https://cms.blockworks.co/blockchain-etfs-gaining-steam/" target="_blank" rel="noreferrer noopener">told Blockworks that month</a> the company offers third-party mutual funds and ETFs with crypto ties through its brokerage platform and was “evaluating how and when we could offer our clients additional opportunities for exposure to cryptocurrencies.”



The Schwab filing follows BlackRock’s, the world’s largest asset manager, <a href="https://cms.blockworks.co/blackrock-files-for-crypto-etf/" target="_blank" rel="noreferrer noopener">filing to launch</a> an ETF focused on blockchain technology in January. Fidelity Investments <a href="https://cms.blockworks.co/fidelity-plots-crypto-etfs/" target="_blank" rel="noreferrer noopener">revealed plans a week later</a> to bring to market ETFs that would invest in companies involved in the metaverse and crypto more broadly.



The bank’s asset management arm oversaw roughly $380 billion of assets within index mutual funds and ETFs, as of Sept. 30, the most recent data available.



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BlackRock

Charles Schwab Latest ETF Heavyweight To Propose Crypto Fund

Jacquelyn Melinek

<div id="highlights-block_621e76fb8de4a" class="highlights">
 <ul>
 <li>“There is no longer any room for doubt regarding the impact crypto assets are having on our global financial system,&#8221; said Farzam Ehsani, VALR CEO and co-founder</li>
 <li>VALR has processed over $7.5 billion in trading volume since its 2019 launch</li>
 </ul>
 
</div>



South African crypto exchange VALR raised a $50 million venture capital round in one of the largest fundraises for the continent on record.



The exchange raised $50 million — bringing the company’s valuation to $240 million — in a Series B round led by crypto asset manager Pantera Capital, VALR said Tuesday.



The round was oversubscribed with investors including Alameda Research, Cadenza, CMT Digital, Coinbase Ventures, Distributed Global, GSR, Third Prime and Avon Ventures, which is affiliated with Fidelity Investments. Existing investors Bittrex and 4Di Capital also wrote checks.



The funds will be used to expand across Africa and into other emerging markets like India, as well as bringing new products and services onboard and hiring.&nbsp;



In July 2020, VALR raised $3.4 million in a Series A. Its valuation has grown tenfold since.



“There is no longer any room for doubt regarding the impact crypto assets are having on our global financial system,&#8221; Farzam Ehsani, VALR CEO and co-founder, said in a statement.



VALR users can trade and custody more than 60 cryptocurrencies with relatively low fees. Since its 2019 launch, the startup has processed more than $7.5 billion in trades between 250,000 retail customers and 500 institutional clients.



Crypto has grown in Africa as funds have deployed capital to the continent. From July 2020 to June 2021, crypto adoption in Africa increased 1,200%, according to <a href="https://blog.chainalysis.com/reports/africas-grassroots-cryptocurrency-adoption/" target="_blank" rel="noreferrer noopener">Chainalysis</a>. Kenya, Nigeria, South Africa and Tanzania are considered regional crypto hubs.



“In addition to being the third-fastest growing cryptocurrency economy, Africa also has a bigger share of its overall transaction volume made up of retail-sized transfers than any other region at just over 7%, versus the global average of 5.5%,” the report says.&nbsp;



Last year, rapper Jay-Z and Jack Dorsey, current CEO of <a href="https://cms.blockworks.co/jack-dorseys-square-to-change-its-name-to-block/" target="_blank" rel="noreferrer noopener">Block</a>, formerly known as Square, created <a href="https://cms.blockworks.co/?s=africa#:~:text=Jack%20Dorsey%20and%20Jay%2DZ%20Created%20%E2%82%BFtrust%3B%20Here%E2%80%99s%20How%20its%20Board%20Plans%20to%20Deploy%20the%20500%20Bitcoins" target="_blank" rel="noreferrer noopener">₿trust</a>, a new endowment of 500 bitcoins for development across Africa and India. Three of the four ₿trust board members are in Nigeria, with one based in South Africa. 



&#8220;The world is on the precipice of huge financial change,” Ehsani said. “Crypto assets will become more and more pivotal to all our lives.”



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In One of Africa’s Largest Crypto Raises, South African Exchange Takes In $50M

Casey Wagner

<div id="highlights-block_62151df97e59a" class="highlights">
 <ul>
 <li>The company defended its fees, saying they’ll remain unchanged, as assets and revenues ballooned</li>
 <li>“Everyone is doing an ETP today — everyone wants to do one,” a CoinShares executive said</li>
 </ul>
 
</div>



Thanks to explosive demand for digital asset investment products, European cryptocurrency asset manager CoinShares <a href="https://coinshares.com/investor-relations" target="_blank" rel="noreferrer noopener">notched</a> its highest quarterly earnings and assets under management Tuesday.



CoinShares <a href="https://coinshares.com/investor-relations/reports-portal/quarterly-reports#q1-2021-earnings" target="_blank" rel="noreferrer noopener">reported</a> a 1.6 billion pound, nearly $2.2 billion, year-over-year increase in ETP (exchange-traded product) assets under management between the fourth quarter of 2020 and the fourth quarter of 2021. The asset manager’s total comprehensive income for 2021 was 114.3 million pounds, or $155.4 million, up from 18.6 million pounds in 2020.



“Due to the correlation with digital asset prices and the all-time highs that we&#8217;ve experienced over the year, our products have benefited significantly,” Richard Nash, CoinShares’ chief financial officer, said on Tuesday’s earnings call.&nbsp;



CoinShares’ ETPs generated 78.5 million pounds, or $106.7 million, in fees during the fourth quarter. The asset manager has already launched new ETPs this quarter, including the first such product with staking rewards built on the Tezos and Polkadot blockchains.



CoinShares is not the only asset manager profiting from the <a href="https://cms.blockworks.co/with-us-bitcoin-etf-in-limbo-crypto-exchange-traded-products-all-the-rage-in-europe/" target="_blank" rel="noreferrer noopener">growing interest</a> in digital asset ETPs.



Fidelity International became <a href="https://cms.blockworks.co/21-shares-expands-crypto-etps/" target="_blank" rel="noreferrer noopener">the latest</a> issuer to offer a European ETP earlier this month with the launch of its Fidelity Physical Bitcoin ETP (FBTC) on Germany’s Deutsche Börse Xetra — the cheapest such European ETP. 21Shares, the world’s largest crypto ETP issuer, launched <a href="https://cms.blockworks.co/21-shares-expands-crypto-etps/" target="_blank" rel="noreferrer noopener">three new decentralized finance (DeFi)</a> products in recent weeks.



Asked about competition, CoinShares executives acknowledged that the space is crowded.&nbsp;



“Everyone is doing an ETP today — everyone wants to do one,” Jean-Marie Mognetti, CoinShares’ CEO, said. “I&#8217;m cognizant of the competition, and I welcome it because it&#8217;s much easier for CoinShares to show how good we are at doing what we&#8217;re doing when there are more people than one.”



Growing competition will not impact CoinShares’ current fee structure, at least for now, Mognetti added.



“I don&#8217;t think we are in a position where we have to drop off fees. You are not buying CoinShares and just CoinShares’ products, you&#8217;re buying CoinShares for the brand name,” Mognetti said. “It’s an all-in price…you’re buying the expertise.”



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CoinShares

CoinShares Latest To Benefit From Booming Interest in European Crypto Products

<div id="highlights-block_620bd47379bfc" class="highlights">
 <ul>
 <li>Since 1980 the firm has operated independently of US-based Fidelity Investments, which still seeks to launch a spot bitcoin ETF</li>
 <li>Fidelity International’s bitcoin ETP began trading in Germany on Tuesday and is expected to launch in Switzerland in the coming weeks</li>
 </ul>
 
</div>



Another bitcoin exchange-traded product carrying the Fidelity name has launched — just not the one some US investors are waiting for.



Bermuda-based Fidelity International, which manages roughly $800 billion in client assets, is launching the Fidelity Physical Bitcoin ETP (FBTC) for its professional and institutional clients in Europe.



Once a subsidiary of US-based Fidelity Investments, Fidelity International has operated independently of the company since 1980.



The offering began trading on the Deutsche Börse Xetra in Germany Tuesday, according to the firm, and is expected to begin trading on the SIX Swiss Exchange in the coming weeks. FBTC will cost investors 75 basis points.



Distributed ledger technology has the potential to revolutionize the financial system and disrupt many parts of the financial world, with profound implications for investors, Fidelity International Managing Director Christian Staub said in a statement.



“We are initially providing investors access to the world’s largest cryptocurrency, bitcoin, but we constantly review our product range and will consider further products and services, subject to client demand,” a Fidelity International spokesperson told Blockworks in an email.



Fidelity Digital Assets, a company that Fidelity Investments launched in 2018, serves as custodian of the Fidelity Physical Bitcoin ETP.



A Fidelity Digital Assets survey published last year found that roughly 90% of institutional investors interested in digital assets expect to have an allocation to the space within the next five years.



Fidelity Investments’ Canadian subsidiary <a href="https://cms.blockworks.co/fidelity-set-to-launch-spot-bitcoin-etf-in-canada/" target="_blank" rel="noreferrer noopener">launched</a> an ETF in December that invests directly in bitcoin.



Despite the slew of spot crypto ETP launches abroad in recent months, the Securities and Exchange Commission has not yet approved a spot crypto ETF in the US. The agency <a href="https://www.sec.gov/rules/sro/cboebzx/2022/34-94080.pdf" target="_blank" rel="noreferrer noopener">denied</a> Fidelity Investments’ Wise Origin Bitcoin Trust last month.



“We reaffirm our belief in market readiness for a physical bitcoin exchange traded product and look forward to continued constructive dialogue with the SEC,” a spokesperson told Blockworks at the time.



As it awaits approval for its US spot bitcoin product, Fidelity Investments — with nearly $4.5 trillion of discretionary assets as of Dec. 31 — <a href="https://cms.blockworks.co/fidelity-plots-crypto-etfs/" target="_blank" rel="noreferrer noopener">filed for a pair of ETFs</a> that would invest in companies involved in the metaverse and the broader crypto industry.



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Fidelity International Enables Direct Investment in Bitcoin

<div id="highlights-block_61fd9e58430af" class="highlights">
 <ul>
 <li>The proposed fund would primarily invest in securities within a Global X-developed index</li>
 <li>Planned ETF joins similar products recently filed by First Trust, ProShares and Fidelity Investments</li>
 </ul>
 
</div>



Exchange traded fund-specialist Global X filed to launch a metaverse fund Friday, becoming the latest fund issuer dabbling in the digital space.



The New York-based firm’s Metaverse ETF will primarily invest in the securities of its own metaverse index, which consists of companies positioned to benefit from the development and commercialization of the metaverse, according to the <a href="https://www.sec.gov/Archives/edgar/data/1432353/000143235322000028/a485a-metaverse.htm" target="_blank" rel="noreferrer noopener">regulatory filing</a>.



Global X defines the metaverse as “a set of virtual, three dimensional, real-time rendered spaces and simulations that can be experienced simultaneously by users regardless of the users’ physical location.”



The document did not indicate a ticker or expense ratio.



A Global X spokesperson did not immediately return a request for comment.



Global X has about 90 ETFs trading in the US, with combined assets of roughly $40 billion. It launched its <a href="https://www.globalxetfs.com/funds/bkch/" target="_blank" rel="noreferrer noopener">Blockchain ETF (BKCH)</a> in July, which has grown to about $85 million in assets.



The firm also <a href="https://cms.blockworks.co/global-x-offers-different-type-of-bitcoin-futures-etf/" target="_blank" rel="noreferrer noopener">brought to market</a> its Blockchain &amp; Bitcoin Strategy (BITS) in November. Unlike other bitcoin futures-based products launched in October by ProShares and Valkyrie Investments, BITS invests in both bitcoin futures contracts and stocks of blockchain companies.



Global X’s proposed fund joins others recently filed by <a href="https://www.sec.gov/Archives/edgar/data/0001364608/000144554621006106/etf2_485a.htm">First Trust</a>, <a href="https://cms.blockworks.co/proshares-files-for-metaverse-etf/">ProShares</a> and <a href="https://cms.blockworks.co/fidelity-plots-crypto-etfs/">Fidelity Investments</a>.



Metaverse ETFs available in the US include Roundhill Investments’ Roundhill Ball Metaverse ETF (META), which leads the segment with $820 million in assets, and Subversive Capital’s Metaverse ETF (PUNK), <a href="https://cms.blockworks.co/new-metaverse-etf-launches/">which launched last week</a>.



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