The Boston-based financial company Fidelity has introduced services like exchange-traded crypto funds devoted to the metaverse and digital payments since it announced the debut of its custody and trading platform dubbed Fidelity Digital assets in 2018.
The Fidelity Ethereum Index Fund has now reported to the Securities and Exchange Commission (SEC) that it has raised a little over $5 million through its sales, which began on September 26. The minimum investment amount for additional outside investors in the fund is $50,000. The Ethereum Index Fund is the second product to be released by Fidelity’s Digital Asset management division following the launch of Wise Origin Bitcoin Index Fund 1 in 2020.
By the end of May 2021, the Bitcoin fund had amassed investments totalling more than $125 million. They also claimed that they experience continued demand for their Bitcoin fund. The performance of the Fidelity Ethereum Index PR will be monitored by the new Ethereum fund on the basis of ownership of Ethereum, both passive and direct.
According to a report by a news organization, a Fidelity representative stated that the investment firm understands the need for a wide range of products and solutions that enable clients to obtain exposure in a way that is consistent with their individual financial goals and risk appetite.
While the news of the launch of Fidelity’s fund kept the candles green, it also sustained ETH’s breach above the 11-month-old downtrend line. Although the price of Ethereum has dropped 0.47% since yesterday to trade at $1,355.70, the altcoin has managed to sustain above $1300.
Even while there was a lot of discussion about the Merge on social media, especially in the month prior, not all of it was positive. Ethereum’s price is actually down, given weighted sentiment during the last few days. This can be explained by a number of different factors, such as persistent inflation, the US Federal Reserve’s quantitative easing effort to curb inflation, a deteriorating geopolitical environment, and a possible recession. Despite the negative public perception, it nonetheless managed to attract new whale investors.