Fidelity Files with the Securities and Exchange Commission to Launch Metaverse ETFs
Fidelity Investments has
submitted an application to register a Metaverse exchange-traded fund (ETF)
that tracks public companies that offer products for the Metaverse.
The SEC filing reports that the organization's exchange-traded funds will follow “the performance of global universe companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.”
Specifically, the firms that generate at least 50% of their revenues from sectors such as digital infrastructure, computing hardware, and components, gaming technology, wearable technology, etc. as per the filing.
As part of growing interest in the Metaverse, Fidelity has filed a preliminary application with the U.S. Securities and Exchange Commission. The asset management company has been at the forefront of blockchain and crypto development.
ProShares also filed an ETF application in December. This Maryland-based company filed with the SEC for a product that tracks Solactive Metaverse Theme Index (SOMETAV).
Most significantly, ProShares was the first in the United States to launch an ETF based on Bitcoin Strategy futures, called BITO. The ETF began trading in October last year on the New York Stock Exchange (NYSO) and generated $500 million in trading volume within its first hour.
Several South Korean asset management companies have also recently listed Metaverse-related exchange-traded funds, the first such offering in that country. Roundhill Investments also launched a Metaverse ETF on the New York Stock Exchange in June.
Fidelity launched a Bitcoin exchange-traded fund in Canada on December 2021, where the local watchdog was more supportive. Now it is turning its attention to USA-based ETFs based on the Metaverse.
A spot Bitcoin ETF application submitted by the SEC in March 2021 to list and trade shares of the Wise Origin Bitcoin Trust has been rejected by the Securities and Exchange Commission (SEC). The SEC has expressed concerns about fraud, manipulation, and investor protection related to the proposal to allow investors access to these funds via a traditional brokerage account.
CBW - External Analyst