Fidelity Launches Crypto and Metaverse ETFs: What It Means for Investors

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The investment landscape is evolving rapidly, and Fidelity Investments is positioning itself at the forefront of two of the most talked-about technological shifts: cryptocurrency and the metaverse. On Tuesday, the financial giant announced the launch 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 mark a strategic expansion into digital innovation sectors, offering investors a regulated, accessible way to gain exposure to companies shaping the future of finance and virtual reality.

This move underscores growing institutional interest in digital ecosystems and reflects shifting investor demand — especially among younger demographics — for modern, tech-driven financial products.

Understanding the New Fidelity ETFs

Fidelity Crypto Industry and Digital Payments ETF (FDIG)

The FDIG fund is designed 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 global companies actively involved in:

Notably, this ETF does not invest directly in cryptocurrencies like Bitcoin or Ethereum. Instead, it focuses on publicly traded companies that support or benefit from the crypto economy — such as payment processors, blockchain software providers, and fintech innovators.

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Fidelity Metaverse ETF (FMET)

Similarly, the FMET ETF will allocate at least 80% of its portfolio to securities within the Fidelity Metaverse Index, which captures firms engaged in building, enabling, or advancing the metaverse ecosystem.

But what exactly is the metaverse? It refers to an immersive evolution of the internet — a network of persistent, shared virtual environments where users interact via avatars using augmented and virtual reality (AR/VR) technologies. The index includes companies involved in:

By investing in FMET, shareholders gain diversified exposure to the underlying technologies powering next-generation digital interaction.

Strategic Timing and Market Context

These ETFs are set to begin trading around April 21, bringing Fidelity’s total ETF offerings to 51 funds, with over **$33 billion in ETF assets under management**. While this represents a fraction of Fidelity’s broader $11.1 trillion in total managed assets (as of February 28, 2022), it signals a deliberate push into high-growth thematic investing.

The launch comes amid rising retail and institutional curiosity about digital transformation themes. According to Greg Friedman, Head of ETF Management and Strategy at Fidelity:

“We continue to see strong demand — particularly from younger investors — for access to fast-growing industries within the digital ecosystem. These thematic ETFs offer a familiar investment vehicle for engaging with emerging technologies.”

This sentiment aligns with broader trends: younger investors are increasingly drawn to virtual economies that combine gameplay, social interaction, and tradable digital currencies — all foundational elements of both crypto and metaverse platforms.

What These ETFs Do Not Offer

It's crucial for investors to understand the limitations of these funds. Despite their names, neither FDIG nor FMET provides direct exposure to cryptocurrencies.

As clearly stated in the prospectus:

“The fund will not invest directly in digital assets, nor indirectly through derivatives. It does not participate in initial coin offerings (ICOs), and is not expected to track the price movements of any cryptocurrency.”

This means investors won’t benefit from direct Bitcoin or Ethereum price appreciation. Instead, returns are tied to the performance of traditional equity markets — specifically, companies that operate around these technologies.

Fidelity has previously attempted to break into the spot crypto ETF space. In January, the U.S. Securities and Exchange Commission (SEC) rejected its application for the Wise Origin Bitcoin Trust, which would have been a true spot Bitcoin ETF tracking BTC prices directly. Regulatory hurdles remain significant, but Fidelity continues to build infrastructure through its Fidelity Digital Assets division — launched in 2018 to serve institutional clients with custody and trade execution services.

Competitive Landscape: A Crowded but Growing Space

Fidelity isn’t alone in targeting these themes. The metaverse ETF space is already competitive, with existing offerings such as:

Each competes for investor attention by offering slightly different index methodologies and sector weightings. Fidelity’s brand strength, low-cost structure potential, and broad distribution network may give it an edge in attracting long-term investors seeking trusted access to these themes.

Frequently Asked Questions (FAQ)

Q: Can I use these ETFs to invest directly in Bitcoin or NFTs?
A: No. Both FDIG and FMET invest only in traditional stocks and depositary receipts of companies involved in crypto or metaverse ecosystems. They do not hold digital assets.

Q: Are these ETFs suitable for conservative investors?
A: These are thematic funds focused on emerging technologies, which tend to be more volatile. They’re better suited for investors with higher risk tolerance and a long-term outlook.

Q: How do I buy shares of FDIG or FMET?
A: Once listed (expected April 21), shares can be purchased through any standard brokerage account, just like other ETFs.

Q: Does Fidelity have any crypto custody services?
A: Yes. Fidelity Digital Assets provides institutional-grade custody and trading solutions for Bitcoin and other digital assets — though separate from these retail ETFs.

Q: Will Fidelity launch a spot Bitcoin ETF in the future?
A: While previous applications were rejected, Fidelity remains active in the space. Future filings are possible if regulatory conditions evolve.

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Why This Matters for the Future of Investing

Fidelity’s entry into crypto-adjacent and metaverse-themed ETFs reflects a maturing market. Even without direct crypto exposure, these funds validate blockchain and immersive tech as legitimate investment themes worthy of mainstream financial products.

For investors, they offer a bridge between traditional finance and digital innovation — combining regulatory compliance with access to transformative trends. As adoption grows, expect more asset managers to follow suit with similarly structured thematic funds.

Final Thoughts

Fidelity’s launch of FDIG and FMET is more than just a product expansion — it’s a signal that digital transformation is now embedded in mainstream investing. While regulatory barriers still prevent direct crypto exposure through ETFs, these new funds provide a viable alternative for those wanting to participate in the growth of blockchain, digital payments, and virtual worlds.

As technology continues to reshape how we work, play, and transact, staying informed about these shifts is essential. Whether you're a seasoned investor or just beginning your journey, understanding where innovation meets finance will be key to building resilient portfolios in 2025 and beyond.

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