Fidelity expands its crypto offerings by bringing Ethereum Index Fund

Clients will have access to Ethereum (ETH), the second-largest cryptocurrency by market value, through leading brokerage and banking firm Fidelity Investments‘ new Ethereum Index Fund.

Since sales began on September 26, the fund, which has a minimum investment of $50,000, has raised nearly $5 million, according to a filing with the United States Securities and Exchange Commission.

In 2018, the company introduced Fidelity Digital Assets, institutional custody and trading platform that is focused on cryptocurrencies. The company provides investors with access to two exchange-traded crypto funds that are, respectively, focused on the metaverse and digital payments. It added Ethereum support back in 2020, as TheCoinRise reported.

Fidelity Ethereum Index Fund is limited to accredited investors

According to a recent report by Coindesk which cites a source familiar with the fund, the company’s new Ethereum Index Fund is only restricted to accredited investors and aims to track the performance of the Fidelity Ethereum Index PR benchmark through the passive, direct ownership of Ethereum. Notably, the new Ethereum fund is the second fund to be launched by the digital asset management company owned and operated by Fidelity Digital Assets. while the first fund, the Wise Origin Bitcoin Index Fund I, was established in 2020.

A Fidelity Investments spokesperson told Coindesk that the company is recognizing 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” amid the growing digital assets market. They added:

“We have continued to see client demand for exposure to digital assets beyond bitcoin.”

It was reported late last month that Fidelity was considering allowing its retail brokerage customers to engage in cryptocurrency trading.

In April, Fidelity invested in Jack Dorsey’s Circle which collected $400 million in a funding round. Moreover, it also led a Series D funding round for digital wealth manager Moneybox, as we reported.