Fidelity has filed a filing with the U.S. Securities and Exchange Commission indicating that it plans to launch the Fidelity Ethereum Index Fund, an investment product. It will be available for purchase on October 4, 2022. While the new fund is not an exchange-traded fund it is said to be structured as a “traditional limited partnership.”
Traditional Limited Partnership
Fidelity plans to launch an Ethereum-based index in October 2022, according to a U.S Securities and Exchange Commission (SEC) filing. The filing states that a $50,000 minimum investment from anyone interested in the security must be made. As of the writing of this report, assets in the fund were barely above $5 million.
As explained by a report published by Barron’s Advisor, the new security, which is also known as the Fidelity Ethereum Index Fund, is not an exchange-traded fund (ETF). Instead, the ethereum index fund is said to be structured as a “traditional limited partnership.”
According to Investopedia, a limited partnership is a partnership that consists of at least two partners. The general partner, also called the general partner, is responsible for the management of the company. Other limited partners (also known as partners in a partnership) are not allowed to participate in day-to-day business activities.
Clients’ Demand for Exposure Beyond Bitcoin
A spokesperson from Fidelity reportedly stated that the launch of an ETH-based Index Fund by Fidelity was less than two years after the company launched a similar bitcoin fund.
Clients continue to ask for digital asset exposure beyond bitcoin.
The new fund, whose benchmark is the Fidelity Ethereum Index PR (FIDETHP), is reportedly constructed using the second largest crypto asset’s price feeds which are obtained from the so-called approved exchanges.
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