Fidelity Expands Crypto Suite With Ethereum Index Fund

key takeaways

Wealthy individuals who can invest a minimum of $50,000 each have access to the fund
Ethereum’s Merge believed to have changed investment case for ether

Fidelity is offering customers exposure to ether as the brokerage broadens its crypto offerings in the face of a recent slump in the market. The Boston-based finance giant has launched an Ethereum Index fund, a SEC filing from Tuesday showed.

The fund has already raised $5 million since sales began on Sept. 26. But just one unnamed party appears to have invested in the offering so far.

Only investors who are able to provide a minimum investment of $50,000 are authorized access to the fund. Crypto index funds are passively managed and track the performance of an asset, like ether in Fidelity’s latest product.

Ethereum’s Merge has drawn the attention of industry participants, with many paying closer attention to the blockchain’s growing potential, Ben Dean, director of digital assets at WisdomTree in Europe, told Blockworks.

Ethereum’s move to proof-of-stake “completely changes the investment case for ether,” Dean said.

WisdomTree has launched index products tracking major cryptoassets in Europe, including ether.

Blockworks recently reported that Fidelity’s digital assets arm was looking to offer its institutional investors the ability to buy, trade and sell custody ether by the end of the year. Jack Neureuter, a research analyst at Fidelity Digital Assets, agreed that the Merge is “likely to increase the overall levels of interest in the asset for many institutional investors, particularly over a long enough timeframe.”

Fidelity, immersed in crypto since 2018, launched the Wise Origin Bitcoin Fund in August 2020, enabling customers the ability to gain exposure to bitcoin. That fund garnered $102 million within just nine months of its launch. The firm also reportedly plans to offer bitcoin trading on its platform to retail clients.

A 2021 report by Fidelity states that 40% of crypto hedge funds and venture capitalists were interested in gaining exposure to digital assets.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.