Fidelity Files with SEC to Launch Metaverse ETF

In Brief:

• Fidelity submitted a filing with SEC to create metaverse ETFs.
• It will track the companies engaged in metaverse-based product developments.
• For the Metaverse ETFs, Geode Capital Management will help Fidelity Fund as a Sub-adviser.

U.S Security and Exchange Commission (SEC) received a filing from Fidelity for Metaverse Exchange-traded funds (ETF), which will track firms involved in the metaverse and crypto.

As per the filing, The ETF will need to provide returns to the proportional index, which will be based on stocks of companies that generate at least a minimum of 50% of their revenue from categories such as computing hardware, digital infrastructure, gaming technology, and wearable technology. 

For the Metaverse ETFs, Geode Capital Management will help Fidelity Fund as a Sub-adviser.

 The ETF won’t invest in actual cryptocurrencies or initial coin offerings. 

Fidelity filing shows the potential interest of metaverse trends, where many companies are taking a dive. Before this, Proshares submitted a filing for a metaverse ETF with the SEC. 

In June, Roundhill Investments already introduced a tradable metaverse ETF on the New York Stock Exchange. Four leading South Korean asset management funds are also listing their metaverse ETFs in the country for the first time. 

It will be an ordeal for Fidelity to get approval from the SEC, as the rejection ratio for filing is a little bit scary. Recently, the US SEC has rejected Fidelity’s Spot Bitcoin ETF citing concerns of fraud, manipulation, and investor protection for rejection.

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