Fidelity Introduces $5M Ethereum Index Fund

Leading asset management company Fidelity has revealed that its Ethereum Index Fund has raised $5 million in the week and a half since its launch. 

$5M Raised Since Sept 26

The first sale for the Fidelity Ethereum Index Fund took place on September 26, 2022. Since then, it has raised nearly $5 million by just trading at fixed prices once the markets close. The information was disclosed when the company filed certain registration documents with the U.S. Securities and Exchanges Commission (SEC) on Tuesday. Outside investors can also participate in the initiative with a minimum investment of $50,000. Fidelity has also stated that it will be offering the fund for over a year and is not going to participate in any business combination transaction, such as a merger, acquisition, or exchange. This sends a message to the investors that the fund is reliable, at least for the near future. 

SEC Approved Eth Index Fund

The registration proves that Fidelity was able to secure the approval of the SEC, which has notoriously been stingy about allowing crypto trading funds. However, it is to be noted that the Ethereum Index fund is quite different from an Exhange-Traded Fund (ETF). The former trades only once per day, and that too after market closing hours and at fixed prices, whereas ETFs can be traded throughout the day like stocks. Additionally, Index funds tend to have higher minimums, and the Fidelity Ethereum Index Fund has a minimum investment requirement of $50,000. Experts believe that it puts this fund out of the reach of retail investors since it is specifically more focused on accredited investors. 

Fidelity’s Crypto Play

Fidelity is one of the leading asset management and investment firms and has already been an established player in traditional finance for years. Recently it has been focusing more efforts on shifting gears to crypto. Even Galaxy Digital CEO Mike Novogratz spoke about Fidelity’s crypto shift at the SALT Forum in New York, 

“A bird told me, a little bird in my ear, told me Fidelity is going to shift its retail customers into crypto soon enough. I hope that bird is right.”

In April 2022, the company revealed that it would be giving its customers the option to invest their 401(K) funds in crypto by including BTC offering in its portfolio. There has also been word around the block that the investment management firm will be offering bitcoin trading for retail customers on its brokerage platform from November 2022.  

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.