Financial Giant Fidelity Launched An Index Fund That Will Track Ethereum

Fidelity recently announced a new fund that would provide investors exposure to ether (ETH), the second-largest cryptocurrency by market value. Since then, the fund has raised around $5 million.

A report with the U.S. Securities and Exchange Commission indicates that the fund has collected almost $5 million in capital since sales began on September 26. Your initial investment must be at least $50,000.

In 2018, Fidelity introduced Fidelity Digital Assets, an institutional custody and trading platform dedicated to cryptocurrencies. The company provides investors with access to two crypto exchange-traded funds that focus on the metaverse and on digital payments, respectively.

The Fidelity Ethereum Index Fund will track the Fidelity Ethereum Index PR benchmark through passive, direct ownership of ether, according to Coindesk’s source. Following the launch of the Wise Origin Bitcoin Index Fund I in 2020, Fidelity Digital Assets has now introduced an Ethereum fund.

“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,” according to a Fidelity spokesperson.

The rumour that retail brokerage firm Fidelity was exploring enabling cryptocurrency trading for its customers spread last month.