After the SEC rejected its proposal for a Bitcoin ETF, Fidelity is trying its luck with two products tied to the crypto and metaverse industries.
Fidelity Investmentsone of the world’s largest asset managers, is not planning to give up on cryptocurrency exchange-traded funds (ETFs).
The same week that the United States Securities and Exchange Commission (SEC) rejected the company’s request to launch an ETF of Bitcoin, fidelity has filed two other applications for investment products of the same type linked to the digital asset industry and the metaverse.
Various news outlets publicized plans to fidelityciting SEC public filings presented on Thursday.
Fidelity tries its luck with a metaverse ETF
One of the presentations fidelity it is for an ETF that would track the performance of companies in the crypto industry. The product, called Crypto Industry and Digital Payments ETFwould track the homonymous index of fidelity, which includes companiesdedicated to activities related to cryptocurrency, Blockchain technology and digital payment processing“.
fidelity is also interested in trying her luck with an investment product tied to the growing metaverse trend. Regulatory records showed, the US company filed a request to “Fidelity Metaverse ETF“, which would track companies whose business focus is broadly related to the metaverse.
As such, the product will seek to provide returns comparable to a proprietary index made up of shares of companies that generate at least 50% of their total revenue in categories such as hardware and the computing components, digital infrastructure, gaming technology, and other products related to the metaverse.
Both ETFs will have the signature Geode Capital Managementbased in Boston, as his adviser, while the administrators in charge include Deane Gyllenhaal, Louis Bottari and Peter Matthew, according to reports. Bloomberg.
fidelity It’s not the only fund manager looking to address interest in the metaverse and virtual worlds. Pro Shares, a well-known ETF issuer in the United States, had already filed a similar ETF with the SEC in December. as reviewed DailyBitcointhe product of that firm, called ETF Metaverse Themewould track the performance of tech giants like meta, apple Y Nvidiacompanies that are directing efforts within the metaverse market.
Waiting for a physical Bitcoin ETF
The news comes just one day after the SEC rejected the application for fidelity for an ETF of Bitcoin cash. The federal agency denied the proposal initially submitted by the company in March 2021 because it does not meet the requirements established by the Commission.
It is possible that fidelity have more opportunities with an ETF that tracks indices of companies in the crypto and metaverse industry, rather than a fund that invests directly in digital assets like Bitcoin.
The SEC last year approved a first-ever futures ETF Bitcoin, which at the time generated expectations about a possible change in the regulator’s position. However, to date, the agency has been reluctant to approve any ETF directly backed by a cryptocurrency (also called spot or physical), citing concerns about market manipulation and fraud.
Last week, the SEC had rejected another ETF from Bitcointhe one of First Trust Advisors Y sky bridge. Since November 2021, the agency has rejected about a half-dozen similar requests. Given the reluctance of US regulators to approve this type of fund, fidelity has chosen to launch an ETF of Bitcoin in Canada.
Article by Hannah Estefanía Pérez / DailyBitcoin
Image edited from Unsplash
WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.