Fidelity Investments appeared undeterred by the U.S. Securities and Exchange Commission’s, or SEC’s, rejection of its Wise Origin Trust spot exchange-traded fund (ETF) on Thursday. Following the setback, the company filed two more prospectuses involving crypto-metaverse ETFs for regulatory approval. The proposals are for the Fidelity Crypto Industry and Digital Payments ETF and the Fidelity Metaverse ETF, respectively. In rejecting the Wise Origin Bitcoin ETF, the SEC cited the exchange listing the ETF, the Cboe BZX, for not having a proper “surveillance-sharing agreement with markets trading” to prevent fraud and protect investor interests.
However, neither of the two new ETF applications will have any exposure to digital assets. Instead, they seek to gain exposure to stocks of cryptocurrency and metaverse companies operating in the space. Additionally, the constituent companies must generate substantial revenue for their shares to be added to the fund.
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