Fidelity Launches Ethereum Index Fund Lets Clients Looking for Exposure to Digital Assets Beyond BTC
Categories: Bitcoin Crypto News
Fidelity LaunchesEthereum Index Fund - Lets Clients 'Looking for Exposure to Digital AssetsBeyond BTC'
A filingwith the US Securities and Exchange Commission revealed that Fidelity islooking to launch an investment product known as the Fidelity Ethereum IndexFund on October 4, 2022. While the new fund is not an exchange-traded fund, itis structured called a "traditional limited partnership."
TraditionalLimited Partnerships
According toa filing filed with the US Securities and Exchange Commission (SEC), Fidelityplans to launch the Ethereum Index on October 4, 2022. As of the filing, theminimum investment accepted from an outsider interested in the security is$50,000. , At the time of writing, the fund had assets of over $5 million.
As explainedby a report published by Barron's Advisors, the new security, also known as theFidelity Ethereum Index Fund, is not an exchange-traded fund (ETF).Instead, the Ethereum Index Fund is said to be structured as a "traditionallimited partnership." A limited partnership, according toInvestopedia, is a partnership made up of two or more partners.
A partnerknown as a general partner is responsible for managing the business, whileother partners who are also known as limited partners are not involved in theday-to-day activities of the business.
ClientsSeeking Exposure Beyond Bitcoin
A spokesmanfor the investment company said that less than two years after Fidelitylaunched a similar fund for bitcoin, Fidelity had launched an ETH-basedindex fund, commenting on the revelations that clients are seeking exposurebeyond bitcoin.
The newfund, whose benchmark is the Fidelity Ethereum Index PR (FIDETHP), isreportedly constructed using the second largest crypto asset’s price feedswhich are obtained from the so-called approved exchanges.