Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Leading asset manager Fidelity reveals Ethereum Index Fund with $5 million in sales in less than month, and a $50K minimum requirement.
Asset management powerhouse Fidelity has launched a new Ethereum Index Fund, which offers clients exposure to the prominent altcoin. According to a regulatory filing, the crypto fund has generated around $5 million since sales began in late September. At the moment, the minimum investment required for the new product is $50K.
The Fidelity Ethereum Index Fund will track the performance of the Fidelity Ethereum Index PR benchmark for customers. However, it is only available to accredited investors. According to an inside source, the fund will achieve this through passive direct ownership of Ether (ETH). The new Ethereum fund is the second one by Fidelity Digital Assets’ digital asset management business, after 2020’s Wise Origin Bitcoin Index Fund I.
Speaking on the company’s latest crypto offering, a Fidelity spokesperson explained that “as the marketplace for digital assets grows, Fidelity recognizes 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 for exposure to digital assets beyond bitcoin.”
Fidelity’s new Ethereum Index Fund ventures into an increasingly crowded space alongside a host of other leading Ethereum funds.
Fidelity Ethereum Index Fund Part of Broader Crypto Endeavor by Prominent Asset Manager
Reports first stated that Fidelity would soon offer Bitcoin exposure to retail investors in September. This would build upon the asset management giant’s considerable strides in the crypto space. At the time, the firm’s official statement read:
“While we have nothing new to announce, expanding our offerings to enable broader access to digital assets remains an area of focus.”
Galaxy Digital CEO Mike Novogratz also commented on the news at the time at New York’s SALT forum. He said:
“A bird told me, a little bird in my ear, told me Fidelity is going to shift its retail customers into crypto soon enough. I hope that bird is right.”
Fidelity also recently launched a crypto exchange in collaboration with Charles Schwab, Citadel Securities, and other investors. Referred to as EDX Markets, the novel exchange platform will grant users a secure, swifter, and more efficient crypto trading experience. In addition, Fidelity’s crypto exchange platform will use technology built by stock exchange The Members Exchange (MEMX).
At the time of the announcement, a Fidelity spokesperson said that “the intention of the industry consortium is to build market infrastructure that contributes to increased optionality for liquidity to facilitate a more efficient, secure and cost-effective process for trading digital assets.”
Back in 2018, Fidelity launched its crypto institutional custody and trading platform, Fidelity Digital Assets. This initiative has been instrumental for establishing routes to the crypto markets for interested traditional players.
Founded in 1946, Fidelity Investments is one of the world’s largest asset managers, with $4.5 trillion in assets under management (AUM). In addition, as of December 2021, the Boston-based firm had $11.8 trillion in assets under administration.