Fidelity Launches Ethereum Index Fund — Confirming Clients’ Demand for Exposure to Digital Assets Beyond BTC
Fidelity plans to launch an investment product known as the Fidelity Ethereum Index Fund on October 4, 2022, according to filings with the U.S. Securities and Exchange Commission. The new fund is not an exchange-traded fund, but is said to be structured as follows: “Traditional Limited Partnership”.
Traditional limited partnership
According to filings with the U.S. Securities and Exchange Commission (SEC), Fidelity was scheduled to launch its Ethereum index on October 4, 2022. According to documents, the minimum investment he accepts from outsiders interested in security is $50,000. At the time of writing, the fund’s assets put him at just over $5 million.
The new security, also known as the Fidelity Ethereum Index Fund, is not an Exchange Traded Fund (ETF), as explained in a report published by Barron’s Advisor. Instead, the Ethereum Index Fund is said to be structured as a “traditional limited partnership.”
According to Investopedia, a limited partnership is a partnership made up of two or more partners. One of her partners, called the general partner, is responsible for managing the business, while the other partners, also called limited partners, are not involved in the day-to-day activities of the business.
Client demand for exposure beyond Bitcoin
In response to the revelations that Fidelity launched an ETH-based index fund less than two years after launching a similar fund for Bitcoin, a spokesperson for the investment firm was quoted as saying: I’m here.
We continue to see client demand for exposure to digital assets beyond Bitcoin.
The new fund, benchmarked against the Fidelity Ethereum Index PR (FIDETHP), was reportedly built using the second largest cryptocurrency price feed obtained from so-called approved exchanges.
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Fidelity Launches Ethereum Index Fund — Confirming Clients’ Demand for Exposure to Digital Assets Beyond BTC
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