Fidelity’s new Ethereum Index Fund will expose investors to ether (ETH), the second-largest cryptocurrency by market capitalisation.
Since sales began on September 26, the fund has raised around $5 million, according to a filing with the U.S. Securities and Exchange Commission. The minimum investment is $50,000.
Fidelity introduced its institutional custody and trading platform for cryptocurrencies, Fidelity Digital Assets, in 2018. The company offers two exchange-traded crypto funds devoted to the metaverse and digital payments.
Fidelity Investments. Image: Depositphotos
A person familiar with the fund told CoinDesk that the Fidelity Ethereum Index Fund is restricted to authorised investors and would track the performance of the Fidelity Ethereum Index PR benchmark through passive, direct ownership of ether. The new Ethereum fund is the second to be developed by the digital asset management company of Fidelity Digital Assets after introducing the Wise Origin Bitcoin Index Fund I in 2020.
“As the marketplace for digital assets grows, Fidelity recognises the need for a diverse set of products and solutions that help customers gain exposure in a manner that aligns with their distinct financial objectives and risk tolerance. We have continued to see client demand exposure to digital assets beyond bitcoin,” a Fidelity spokesperson told CoinDesk in an email.
Last month, it was reported that Fidelity might provide cryptocurrency trading to its retail brokerage clients.