- Fidelity has been hard at work on their own cryptocurrency exchange, called EDX Markets.
- Mike Novogratz, CEO of Galaxy Digital first informed about the update.
Registration paperwork submitted to the U.S. Securities and Exchange Commission (SEC) reveals that Fidelity has invested $5 million in a new Ethereum index fund. Moreover, the $4.5 trillion asset management filed its Fidelity Ethereum Index Fund with the SEC on Tuesday but reported that the first sale occurred on September 26.
Although the news did not come directly from Fidelity, it was speculated last month that the company was exploring allowing Bitcoin trading for its more than 34 million retail clients. Mike Novogratz, CEO of Galaxy Digital, let the cat out of the bag at New York’s SALT event.
Competing With Established Rivals
Fidelity has been hard at work on their own cryptocurrency exchange, called EDX Markets. A Fidelity representative told last month that the business has formed a consortium with Charles Schwab, Citadel Securities, and other sponsors in order to launch a new exchange that would “enable a more efficient, safe, and cost-effective procedure for trading digital assets.”
The new Fidelity Ethereum Index Fund competes with a growing number of established rivals in this space. Bitwise, a $1 billion experienced asset manager, reported $25 million in Ethereum Fund assets under management in an SEC filing in September. Furthermore, the Bitwise Ethereum Index Fund was introduced by the San Francisco firm in 2018, making it far more established.
The primary distinction between index funds like those offered by Fidelity and Bitwise and ETFs like the Grayscale Ethereum Trust (ETHE) is the method through which they are traded. Fidelity’s new index fund, like all others, is available only after markets have closed, at predetermined prices.
Recommended For You: