Fidelity not seem to give up after ETF rejection

United States Securities and Exchange Commissions Or US SEC have rejected an ETF application from a financial services company Fidelity Investments on Thursday. ETF for which the firm had requested was Wise Origin Trust which did not get approval. But it seems that Fidelity did not give after rejection and following that it had filed another two applications of ETFs related to crypto metaverse for regulatory approval.

Financial service firms applied for new ventures including Fidelity Crypto Industry and Digital Payments ETF and another one is Fidelity Metaverse ETF. Ironically both new ETF applications will not have any contact to cryptocurrencies, despite that they would be focusing the stocks and companies working in the field of crypto and metaverse. Apart from that, those new companies’ revenue generated from their shares will be added to the fund.

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For the rejection of an earlier application for an ETF filed by Fidelity, the reason stated by SEC was that the Wise Origin Bitcoin ETF by the Cboe BZX had not had a proper agreement of surveillance sharing with market trading that is to prevent fraud and for protection of investor’s interests.

Fidelity Investments Inc. is an America based financial services company headquartered at Boston, Massachusetts. It is one of the largest funds and assets manager firms with approx $4.9 trillion worth of assets under its management according to the data on 2020. 

The ETF for Fidelity Metaverse will be under considerations like components and hardware units for computing, design, engineering software, digital infrastructure, web and content developers,gaming technology and wearable technology instruments and smartphones too.

And for Fidelity Crypto industry and Digital Payments ETF it will include investment cryptocurrency mining operating companies, trading of cryptocurrencies, crypto exchanges, digital payments processors and blockchain tech firms.   

There are more than 40 digital currency ETFs there from various financial institutions that are in the waiting list for the decision from the SEC. In December,Fidelity got regulatory  approval officially in Canada of launching a Bitcoin ETF and also a Bitcoin Mutual Fund.