Fidelity Investments has expanded its financial product lineup with the introduction of two new exchange-traded funds (ETFs): the Fidelity Crypto Industry and Digital Payments ETF (FDIG) and the Fidelity Metaverse ETF (FMET). These thematic ETFs are designed to provide investors with exposure to companies operating within the growing cryptocurrency and metaverse sectors, marking a significant step in broadening accessible investment avenues in emerging digital industries.
Understanding Fidelity’s New Thematic ETFs
Fidelity Crypto Industry and Digital Payments ETF (FDIG)
The FDIG ETF is structured to invest at least 80% of its assets in equity securities and depositary receipts included in the Fidelity Crypto Industry and Digital Payments Index. This index tracks the performance of companies globally that are engaged in activities related to cryptocurrency, blockchain technology, and digital payment processing.
By focusing on businesses that facilitate and support digital transactions and crypto infrastructure, this ETF offers indirect exposure to the expanding crypto economy.
Fidelity Metaverse ETF (FMET)
Similarly, the FMET ETF will allocate a minimum of 80% of its assets to securities within the Fidelity Metaverse Index. The term "metaverse" refers to an evolving vision of the internet, characterized by interconnected virtual worlds and augmented reality environments where users can interact within shared digital spaces.
This ETF aims to capture the performance of companies involved in developing, manufacturing, distributing, or selling products and services that enable the metaverse.
What This Means for Investors
The launch of these ETFs enables investors to participate in high-growth digital themes through a traditional and regulated investment vehicle. Rather than investing directly in cryptocurrencies or digital assets, these funds focus on equities of companies driving innovation in these sectors.
This approach may appeal to those seeking diversified exposure to technological trends without the complexities of direct crypto ownership.
Greg Friedman, Head of ETF Management and Strategy at Fidelity, emphasized the rising investor interest, particularly among younger demographics:
“We continue to see demand from investors—especially younger ones—looking to access high-growth segments within the digital ecosystem. These thematic ETFs provide a familiar investment tool to tap into these emerging opportunities.”
The new funds are scheduled to begin trading on or around April 21.
Key Considerations Before Investing
It’s important to note that these ETFs do not offer direct investment in cryptocurrencies. As clearly stated in Fidelity’s prospectus:
“The Fund does not invest directly in digital assets (including cryptocurrencies) or use digital asset derivatives. The Fund also does not invest in initial coin offerings. Therefore, the Fund is not expected to track the price movement of any digital asset.”
This clarification underscores that while the funds are linked to the crypto and metaverse ecosystems, they are equity-based and subject to traditional market risks.
Fidelity has also made earlier attempts to launch a spot Bitcoin ETF, such as the Wise Origin Bitcoin Trust, which was rejected by the U.S. Securities and Exchange Commission (SEC) in January. The company continues to serve institutional clients through its digital asset arm, Fidelity Digital Assets, launched in 2018.
Competitive Landscape and Market Context
The introduction of the Fidelity Metaverse ETF comes amid a surge of interest in metaverse-related investments. It will compete with existing funds such as:
- Roundhill Ball Metaverse ETF (METV)
- ProShares Metaverse ETF (VERS)
- Subversive Metaverse ETF (PUNK)
This competitive environment reflects growing optimism about the long-term potential of virtual worlds and digital interaction platforms.
With these new offerings, Fidelity now manages 51 ETFs with total assets under management exceeding $33 billion. As of February 2022, Fidelity’s overall assets under administration stood at $11.1 trillion, including $4.2 trillion in discretionary assets.
Frequently Asked Questions
What is a thematic ETF?
Thematic ETFs focus on specific trends, industries, or innovations—such as the metaverse or digital payments—allowing investors to align their portfolios with long-term structural shifts in the economy.
Do Fidelity’s new ETFs invest directly in Bitcoin or Ethereum?
No. Both FDIG and FMET invest in companies related to crypto or the metaverse, but not directly in cryptocurrencies themselves.
Who might consider investing in these ETFs?
These funds may suit investors interested in technological trends, especially those who prefer regulated stock-based products over direct cryptocurrency exposure.
How can I start investing in thematic ETFs?
You can purchase shares of these ETFs through a brokerage account once they are live on the exchange. 👉 Explore more investment strategies
Are there risks involved with thematic ETFs?
Yes. Thematic investing can be volatile and susceptible to hype cycles. It’s important to assess your risk tolerance and consider diversification.
Will Fidelity launch more digital asset ETFs in the future?
While not confirmed, Fidelity has shown continued interest in digital assets, so additional products may follow depending on regulatory developments and market demand.
Conclusion
Fidelity’s entry into the crypto and metaverse ETF market signals a maturation of digital asset investment products. By offering indirect exposure through established public companies, these funds provide a bridge between traditional finance and the evolving digital economy.
Whether you're new to these themes or a seasoned investor, understanding the structure and goals of these ETFs is essential before making investment decisions. 👉 View real-time market tools