Fidelity kickstarts process to list metaverse and crypto company ETFs
January 28, 2022, 11:05AM EST
1 min read
Fidelity Investments has kickstarted the process with the Securities and Exchange Commission (SEC) to launch two exchange-traded funds (ETFs) which will track companies operating in the crypto and metaverse industries.
The Crypto Industry and Digital Payments ETF will look to track the performance of a set of companies offering crypto mining, support services, blockchain technology, and digital payments processing—rather than cryptos themselves.
The Fidelity Metaverse ETF will be set up to deliver returns tracking an index comprised of the stocks of companies generating at least 50% of their total revenue from categories such as computing hardware and components, digital infrastructure, gaming tech and wearable tech.
The move follows Fidelity Investments' filing for a Canadian ETF that would give investors exposure to Bitcoin.
The SEC had rejected the financial services company's application for a spot bitcoin ETF proposal. The regulator raised concerns about fraud, manipulation and investor protection. Such concerns have been floated by the SEC for years, dating back to its rejection of a bitcoin ETF proposal put forward by Cameron and Tyler Winkelvoss, owners of crypto exchange Gemini.
The Bitwise Crypto Industry Innovators ETF and the First Trust SkyBridge Crypto Industry & Digital Economy ETF both launched last year.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
In this episode of The Scoop, StarkWare Co-Founders Uri Kolodny and Eli Ben-Sasson walk through StarkWare's recent fundraise and discuss how their firm is bringing affordable blockchain transactions to the masses.