Asset management giant Fidelity is known for making early moves in the world of blockchain and crypto. As per the latest report, Fidelity Investments has filed with the U.S. SEC to create a bunch of ETF products tracking companies that are working in the Metaverse and crypto space.
This specifically includes companies generating at least 50% of their revenue by working in sectors like digital infrastructure, computing hardware, and components, gaming technology, wearable, technology, etc. as per the filing. The Fidelity Metaverse ETF will aim at providing returns at par with any other proprietary index comprising of equities.
Along with it, the asset management has also filed for Fidelity Crypto Industry and Digital Payments ETF. It will seek to track the performance of companies engaged in businesses such as crypto support services, crypto mining, blockchain technology, and digital payments processing.
The ETF won’t directly invest in digital assets. As reported by Bloomberg, both ETFs will be sub-advised by Boston-based Geode Capital Management.
SEC Rejects Fidelity’s Spot Bitcoin ETF Application
In other news, the U.S. Securities and Exchange Commission (SEC) has rejected a spot Bitcoin ETF application submitted by the SEC early last year in March 2021.
The Fidelity Bitcoin ETF application proposed to list and trade shares of the Wise Origin Bitcoin (BTC) Trust. The proposed rule change was about allowing investors to gain access to these funds via a traditional brokerage account while alleviating risks associated with the direct use of Bitcoin.
However, the SEC has cited concerns of fraud, manipulation, and investor protection. The U.S. SEC wrote:
“This order disapproves of the proposed rule change. The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest”.
The post Fidelity Eyes for ETFs Tied to Metaverse After the SEC Rejects Its Spot Bitcoin ETF appeared first on CoinGape.
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