Fidelity Files Metaverse ETF Application with SEC

UTC by Ibukun Ogundare · 3 min read
Fidelity Files Metaverse ETF Application with SEC
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In addition to the Metaverse ETF, the financial services giant also filed for Fidelity Crypto Industry and Digital Payments ETF.

Financial services provider Fidelity Investments has filed an application with the Securities and Exchange Commission (SEC) for a metaverse ETF. If approved, the ETF will track companies that develop, manufacture, distribute, and sell products for the metaverse. According to the filing, Fidelity said the companies that would be involved include those generating a minimum of 50% of their revenue from their work in computer hardware, digital infrastructure, components, gaming technology, technology, and so on. Many companies have been showing interest in the metaverse, including ProShares. Last December, ProShares filed a metaverse ETF application with the SEC, stating that the “Metaverse Theme ETF” would focus on the performance of the Solactive Metaverse Theme Index. 

Fidelity Joins Other Investments as It Seeks SEC Approval for Metaverse ETF

Roundhill Investments currently has a metaverse ETF launched in June and trades on the New York Stock Exchange (NYSE). As the metaverse ETF trend continues, four major asset management funds in South Korea have listed their metaverse-related ETFs. The asset management firms are KB Asset Management, NH Amundi Asset Management, Mirae Asset Global Investment, and Samsung Asset Management. These firms have made names for themselves as the metaverse NFTs are the first-ever in the country. 

The new application submitted by Fidelity is now the latest among other companies seeking metaverse ETF. In the filing, Fidelity names Geode Capital Management as a sub-adviser for the fund. The firm also stated the investment objective:

“Fidelity Metaverse ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Metaverse Index.”

In addition to the Metaverse ETF, the financial services giant also filed for Fidelity Crypto Industry and Digital Payments ETF. The ETF will track the performance of companies involved in crypto-related services. These services include crypto mining, blockchain technology, and digital payments processing. Boston-based Geode Capital Management will sub-advice the two ETFs by Fidelity. 

SEC Rejects Fidelity Spot Bitcoin ETF Application

In other Fidelity-related news, the SEC has rejected a Fidelity spot Bitcoin ETF application. The Fidelity Bitcoin ETF application has proposed listing and trading shares of the Wise Origin Bitcoin Trust in March 2021. The SEC rejection came about a week after the Commission refused a spot Bitcoin ETF application by Firm Trust and SkyBridge Capital. Speaking on the SEC rejection, a Fidelity spokesperson said:

“While we are disappointed by the outcome of the SEC’s deliberations resulting in today’s disapproval order, we reaffirm our belief in market readiness for a physical bitcoin exchange-traded product and look forward to continued constructive dialogue with the SEC.” 

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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