Fidelity’s Ethereum Index Fund pockets $5M in a week

Sahana Kiran
Ethereum
Source – Unsplash

The Merge has brought about immense change in the Ethereum [ETH] ecosystem. In addition, the network’s popularity also witnessed a major rise. The fact that Ethereum became over 99 percent more energy efficient paved the way for many opportunities. Similarly, a prominent asset management firm, Fidelity announced the launch of an ETH-centric Index Fund. Following its launch last week, the fund managed to garner significant sales.

It should be noted that Fidelity ventured into crypto with Fidelity Digital Assets back in 2018. However, it rolled out the Wise Origin Bitcoin Index Fund back in 2020 and its latest Ethereum Index Fund emerged as the second crypto-centric fund. With this particular vehicle, Fidelity aims to offer Ether [ETH] to all its clients.

Speaking about the same, a Fidelity spokesperson said,

“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.”

It should be noted that a Securities and Exchange Commission [SEC] revealed that the very first sale of the fund took place back on the 26th of September. The minimum investment was slated at $50,000.

Will Ethereum outshine Bitcoin in terms of popularity?

It isn’t news that Bitcoin [BTC] has remained the face of the crypto-verse for the longest time now. The first crypto to ever exist continues to remain the largest and most prominent choice for many. However, Ethereum’s latest shift into proof-of-stake [PoS] has put ETH under the spotlight.

Fidelity for instance managed to raise a whopping $5 million since its sales took off last week. Elaborating on Ethereum’s dominance, the spokesperson of Fidelity said,

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

Even though the firm seemed to be late to the party, it clearly managed to lure in many investors. Platforms like Bitwise and Grayscale already have a strong hold on the Ethereum Index Fund market.

At press time, ETH was trading for $1,354 with a 1.62 percent daily surge.