Fidelity Files Two More ETFs for the Metaverse

Asset management company Fidelity has filed for two more exchange-traded funds (ETFs), according to Securities and Exchange Commission (SEC) documents. The two ETFs are the Fidelity Metaverse ETF and the Fidelity Crypto Industry and Digital Payments ETF. Fidelity's Metaverse ETF seeks to provide investment returns corresponding to companies that develop and sell products related to the metaverse, tracked by the Fidelity Metaverse Index. The Crypto Industry and Digital Payments ETF will seek to track the performance of companies active in the crypto industry, through the Fidelity Crypto Industry and Digital Payments Index. This news comes amid the SEC recently rejecting Fidelity's application for a Bitcoin ETF. Yesterday, the regulator said Fidelity's application did not give sufficient evidence on how it would prevent fraud—a common rationale for rejecting an array of previous Bitcoin ETF applications. The SEC and Bitcoin ETFs A Bitcoin ETF is a publicly-traded investment vehicle that tracks the performance of Bitcoin as an underlying asset. It would allow more traditional investors to gain exposure to the leading cryptocurrency but without the hassle of managing private keys and security. In the United States, a Bitcoin ETF has not yet made landfall. The SEC has been reluctant to approve any application over lingering concerns about market manipulation and fraud. Just last week, another Bitcoin ETF—this time from First Trust Advisors and SkyBridge—was rejected. Since November 2021, the SEC has rejected six Bitcoin ETF applications in total. Futures Bitcoin ETFs—which differ from spot ETFs as they instead offer contracts that bet on the future price of Bitcoin—have seen some joy. In October 2021, the ProShares Bitcoin Futures ETF became the first US Futures Bitcoin ETF to be approved by the SEC.