The Ethereum [ETH] ecosystem has undergone significant upheaval as a result of The Merge. The network’s popularity also increased significantly. Ethereum’s improvement in energy efficiency to above 99 percent opened up a lot of possibilities. Similar to this, a well-known asset management company, Fidelity, announced the opening of an Index Fund focused on ETH. The fund was able to generate sizable sales after its inception last week.
It should be remembered that Fidelity first entered the cryptocurrency market in 2018 with Fidelity Digital Assets. But it launched the Wise Origin Bitcoin Index Fund in 2020, and its most recent Ethereum Index Fund became the second cryptocurrency-focused fund. Fidelity wants to provide Ether [ETH] to all of its clients with the help of this specific vehicle.
Speaking on the subject, a Fidelity representative stated,
“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 emphasized that the Securities and Exchange Commission [SEC] disclosed that the fund’s initial sale occurred on September 26. The initial stake was set at $50,000.
Has Ethereum been growing in fame compared to other cryptocurrencies?
It is not surprising that Bitcoin [BTC] has remained the leading cryptocurrency for a very long period. The first cryptocurrency to ever exist is still the most popular and significant option for many. However, Ethereum’s most recent transition to proof-of-stake [PoS] has brought attention to ETH.
For instance, Fidelity raised an incredible $5 million after its sales boomed last week. The Fidelity official went into more detail on Ethereum’s dominance and remarked,
“We have continued to see client demand for exposure to digital assets beyond bitcoin.”
The company appeared to be late to the party, but it definitely succeeded in luring in a sizable number of investors. Market share for Ethereum Index Funds is already firmly entrenched by websites like Bitwise and Grayscale.