Fidelity Requests Two More ETFs for Cryptocurrencies and Metaverse

According to filings with the Securities and Exchange Commission in the United States, Fidelity Investments has submitted two more ETF applications. They are known as the Fidelity Metaverse ETF and the Fidelity Crypto Industry and Digital Payments ETF.

The Metaverse ETF focuses on firms that create and sell products relevant to the metaverse, as measured by the Fidelity Metaverse Index. Through the Fidelity Crypto Industry and Digital Payments Index, the Crypto Industry and Digital Payments ETF will track the performance of companies involved in the cryptocurrency industry.

This announcement follows the SEC’s rejection of Fidelity’s application for a Bitcoin ETF space.

Yesterday, the regulator stated that Fidelity’s plan lacked adequate data regarding preventing fraud – a frequent rationale for rejecting numerous past third-party proposals.

Bitcoin ETFs are exchange-traded funds that track the performance of bitcoin as an underlying asset. Such a product would enable traditional investors to obtain exposure to a popular cryptocurrency without managing private keys or worrying about security.

The Securities and Exchange Commission has approved no Bitcoin ETF in the United States. Due to worries about market manipulation and fraud, the SEC is hesitant to authorize these types of products.

Just last week, another Bitcoin ETF was rejected – this time from First Trust Advisors and SkyBridge. As of November 2021, the SEC has rejected a total of six applications for Bitcoin ETFs.

Bitcoin exchange-traded funds (ETF) futures are distinct from spot ETFs in that they allow for the purchase of futures contracts. They are deemed safer by the SEC, and several have already been approved. The ProShares Bitcoin Futures ETF received the first approval.

Read Also: Senator Elizabeth Warren urges Bitcoin miners to provide energy consumption data

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