The adoption of Ethereum is gathering momentum after the successful upgrade of its mainnet. Fidelity is the latest major player opting to grow its product offering. The leading asset manager has launched an Ethereum Index Fund that grows in leaps and bounds.
About the Ethereum Index Fund
The product launched on September 26th this year. Since then, the fund has grown to $5 million. Investors can participate by investing a minimum of $50,000.
, Unlike an exchange-traded fund, an index fund is adjusted at the close of a trading day. It relies on the closing price for the day, which adjusts the value of investments. An index fund is similar to a unit trust, only that it is hedged on a specific financial instrument such as Ethereum.
Regarding a Crypto asset, the financial investment must be bullish for the index to gain value. The market is bearish currently. Nonetheless, the long-term perspective is bullish, and investors with a long-term investment horizon have confidence in digital assets.
The SEC Approved the Product
The Fidelity Ethereum Index Fund was approved by the US Securities and Exchange Commission (SEC). The Delaware-based asset management firm is now one of the leading investment forms for high-net-worth crypto investors aiming to maximize their wealth.
The agency recently established the office of Industrial Application, Services, and Crypto Asset, where service providers in the industry can file for operating permits. The unit promotes ethical trade practices in the industry to cushion investors from losses.
The strict regulation is restoring confidence in the Crypto industry. Hence, confidence in the Crypto market is rising exponentially, and the market could rally as soon as the economic situation normalizes.
Fidelity Believes in Crypto
The Ethereum Index Fund is not the first Crypto initiative by the brokerage firm. On April 2022, the company unveiled a Bitcoin 401(k) account. The retirement plan has revolutionized long-term investments and allowed BTC holders to deposit their tokens with a long-term investment plan.
The Workplace Retirement Product and Platform manager, Dave Gray, added that the future of finance is in Crypto. Hence, investors who acquire digital assets early can attain high returns on their investments.
One of the largest owners of BTC, MicroStrategy, deposited 130,000 coins. The firm offers business intelligence services that enterprises need for planning.
Meanwhile, ETH is bullish. Week-on-week, Crypto has surged by 3.67%, and the current price is above $1,300. In the last 24 hours, Ethereum has gained 0.83%, and Crypto will close the week in the green zone.
The market dominance of ETH is at 17%, and the market capitalization is $167 billion. The circulating supply of Ethereum is high at 122,673,449, and the coins are ideal both for transaction and investment motives.