Fidelity has recently submitted a filing at the US Securities and Exchange Commission (SEC), where it has revealed its involvement with cryptocurrencies.
In the filing, Fidelity has revealed that it plans to launch a new index and it is going to be for Ethereum (ETH).
Fidelity to Launch Ethereum Index
On October 4, 2022, Fidelity submitted a filing at the US SEC where it revealed that it intends to launch an index for Ethereum.
In the filing, Fidelity mentioned the minimum investment for the investors considered outsiders. The minimum investment they would be required to make to become part of the index and security would be $50,000.
At the time of writing, only $5 million worth of assets have been allocated to the particular fund. ‘
Not an ETF
In the same filing, Fidelity has confirmed that the index is not to be perceived as an exchange-traded fund (ETF). Instead, it is an index fund that has been dubbed the Fidelity Ethereum Index Fund.
The launch of the new fund is to be treated just like a traditional limited partnership as they have structured it that way.
Second Crypto Index
This is not the first crypto index that has been launched by Fidelity. The company launched a similar kind of index for Bitcoin in the year 2020.
As per Fidelity, the reason they have offered these cryptocurrency indexes is because of the growing demand of their clients.
A spokesperson at the company talked about increasing their exposure to cryptocurrencies. The spokesperson revealed that initially, they launched their support for Bitcoin, which was based on the client’s demand.
As the demand continued growing, they had to include Bitcoin as one of the products for their clients. Over time, it has turned out that the demand has risen from Bitcoin to its rival ‘Ethereum’.
With the growing interest and demand for Ethereum, they decided to launch Ethereum Index Fund.
Details about Ethereum Index Fund
Fidelity has communicated that the particular index would be FIDETHP. They have introduced an index based on the largest cryptocurrency after Bitcoin.
The feeds for the particular index would be fed directly from the live pricing of Ethereum. The rates for Ethereum would be collected from multiple exchanges for authentication purposes, and then they will be fed to the index.
This is yet another major example of the mainstream and institutional adoption of major cryptocurrencies.
While Fidelity continues offering Bitcoin and Ethereum indexes, the prices of both assets are moving in an upward direction.
In the past 24 hours, Bitcoin has recorded a 0.48% surge in value, jumping to $19,466.86. Then comes Ethereum which has recorded a 0.89% surge in the same period and currently trades at $1,324.70.