Fidelity Files with The SEC to Launch Metaverse ETFs

The large asset manager – Fidelity Investments – filed with the US Securities and Exchange Commission to establish a pair of exchange-traded funds (ETFs). The financial products will track firms involved in the Metaverse industry.

Aiming at The Metaverse

The American financial services corporation – Fidelity Investments – has already sought the SEC’s approval to launch a Bitcoin ETF in the USA. In September last year, the company urged the Commission to greenlight the product citing the surging appetite for digital asset services from investors and the market’s maturity as reasons.

At the same time, Fidelity tried its luck in Canada, where the local watchdogs were more supportive, and in December 2021, it established a spot Bitcoin ETF there. The product, called Fidelity Advantage Bitcoin ETF (FBTC), obtains physical bitcoins directly.

According to a recent filing with the SEC, the organization wants to try its luck again with exchange-traded funds in the USA. Those will track “the performance of global universe companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.”

The funds, dubbed The Fidelity Crypto Industry and Digital Payments ETF, will aim to replace the performance of an internal index comprised of firms focused on digital asset support services, crypto mining, or digital payment processing. The products will not invest in actual cryptocurrencies or initial coin offerings (ICO).

Boston-based Geode Capital Management will sub-advise both funds, while the managers in charge include Deane Gyllenhaal, Louis Bottari, and Peter Matthew.

ProShares Eyeing The Metaverse, Too

The Maryland-based firm already tried the same move. At the end of 2021, it filed with the SEC to introduce a product that will track the performance of the Solactive Metaverse Theme Index (SOMETAV).

The latter consists of notable companies such as the tech giant – Apple, the GPUs manufacturer – Nvidia, and the leading social platform – Meta (formerly known as Facebook).

Arguably the most significant achievement of ProShares in this field is the launch of the first Bitcoin Strategy futures-backed ETF in the States, ticked BITO. It started trading on the New York Stock Exchange (NYSO) in October last year and generated $500 million of trading volume within its first hour. The figure surged to more than $1 billion upon closing the first trading day.

The starting price of BITO’s shares was hovering around $42, while currently, it trades at approximately $22.