Overview of Fidelity’s New Launch
However, the Fidelity Crypto Industry and Digital Payments ETF (FDIG) is designed not to provide direct exposure to cryptocurrencies listed on crypto platforms. Instead, it will focus on investing in companies that contribute to the broader digital assets ecosystem. These funds will be available to individual investors, with financial advisers also able to access them without commission charges. Investors can trade these funds through Fidelity’s online brokerage platforms.
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The goal of these funds is to generate returns that align with the costs and expenses typically associated with the Fidelity Metaverse Index. Fidelity aims to allocate at least 80% of its assets into securities related to each of the four new ETFs.
The Metaverse Fidelity Index tracks the performance of companies involved in creating, providing, and selling products or services related to the Metaverse. This concept envisions a future Internet characterized by augmented reality and virtual worlds where users can share and interact in real-time within immersive environments.
For the FSLD and FSBD funds, Fidelity is focusing on high current income levels. These funds primarily invest in debt securities that exhibit positive ESG characteristics, including repurchase agreements for such securities.
The FDIG ETF reflects the performance of companies engaged in the cryptocurrency industry and blockchain technology, with an emphasis on digital payment processing services.
Fidelity’s Previous Investment Approaches
Fidelity has also shown an interest in launching a Bitcoin ETF in the United States. However, the decision from U.S. financial regulators on this initiative remains pending, delaying its potential introduction. In the meantime, Fidelity has successfully launched exchange-traded funds in Canada, and two Bitcoin Spot ETFs have also been approved for launch in Australia.
FMET Spread Details
The Fidelity Metaverse ETF (FMET) currently has a relatively high spread between buying and selling, averaging 0.29%. The fund’s gross expense ratio stands at 0.39%. As FMET has only been live for a short period, there is no available data on its performance or holdings. However, Fidelity notes that the market has seen a 4.73% decline over the past month, with the asset class median delivering a 4.82% return over the past year.
What’s Inside Fidelity’s Metaverse Fund?
At present, there is no specific data available on the primary cryptocurrency holdings within Fidelity’s crypto ETFs. However, based on market capitalization, it is highly likely that the Metaverse Index includes tokens such as Apecoin (APE), Decentraland (MANA), The Sandbox (SAND), and Axie Infinity (AXS). CryptoChipy also speculates that Render Token (RNDR), SushiSwap (SUSHI), and Enjin Coin (ENJ) might be part of the Metaverse portfolio.
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Fidelity is entering a highly competitive space, where numerous ETFs already cater to the growing demand for thematic investment funds. In addition, many companies are targeting the younger generation with their own thematic funds.
Greg Friedman, the principal of ETF Operations and Strategy at Fidelity, explained that there is significant demand, especially from younger investors, for access to fast-growing sectors within the digital ecosystem. He added that these new ETFs will provide the right tools for these individuals to reach their investment goals.
Despite the competition, Fidelity’s size and scale may give it a competitive edge in the thematic investment market. ETF expert Eric Balchunas also pointed out that Fidelity has entered the market with the smallest fund among the four Metaverse ETFs currently available.
Fidelity has also launched the Fidelity Stack in Decentraland, a metaverse initiative aimed at educating retail investors on investment basics. According to Reuters, this initiative is primarily focused on attracting younger investors, a group that Fidelity has struggled to engage effectively so far.
