Fidelity’s new Ethereum Index Fund will offer clients access to ether (ETH), the second-largest cryptocurrency by market capitalization.
The fund has raised about $5 million since sales started on Sept. 26, according to a filing with the U.S. Securities and Exchange Commission. The minimum investment is $50,000.
Fidelity launched its crypto-focused institutional custody and trading platform Fidelity Digital Assets in 2018. The firm offers two exchange-traded crypto funds dedicated to the metaverse and digital payments, respectively.
The Fidelity Ethereum Index Fund is only available to accredited investors and will track the performance of the Fidelity Ethereum Index PR benchmark through passive, direct ownership of ether, a source familiar with the fund told CoinDesk. The new Ethereum fund is the second launched by Fidelity Digital Assets’ digital asset management business, following the 2020 launch of the Wise Origin Bitcoin Index Fund I.
“As the marketplace for digital assets grows, Fidelity recognizes the need for a diverse set of products and solutions that help customers gain exposure in a manner that aligns with their distinct financial objectives and risk tolerance. We have continued to see client demand for exposure to digital assets beyond bitcoin,” a Fidelity spokesperson told CoinDesk in an email.
Last month, news broke that Fidelity was considering offering crypto trading to its retail brokerage clients.
Read more: TradFi Investors Will Love Ethereum’s Merge
UPDATE (21:00 UTC): Updates with fund background information and Fidelity quote in fourth and fifth paragraphs.