Fidelity Clearing Canada to serve as custodian, now supporting ether for institutional investors
TORONTO, Sept. 28, 2022 /CNW/ - Fidelity Investments Canada ULC today launched Fidelity Advantage Ether ETF™ and Fidelity Advantage Ether ETF Fund™ for investors looking for exposure to ether.
These strategies leverage Fidelity Clearing Canada ULC (Fidelity Clearing Canada), Canada's first Investment Industry Regulatory Organization of Canada entity to offer a secure digital asset trading and custody solution for institutional investors including investment funds.
Building on the capability to custody and trade bitcoin, Fidelity Clearing Canada's innovative platform now supports ether, providing institutional investors a regulated and secure way to access two of the most prominent digital assets.
In leveraging Fidelity Clearing Canada, Fidelity Advantage Ether ETF™ and Fidelity Advantage Ether ETF Fund™ will offer investors institutional-grade, innovative, multi-level security features backed by the global strength of Fidelity, which has been an early explorer and offers deep resources in and knowledge of digital assets for clients.
Effective today, Fidelity Advantage Ether ETF™ will begin trading on the Toronto Stock Exchange with the ticker symbols: FETH (Canadian dollar version) and FETH.U (U.S. dollar version).
"Building on Fidelity Advantage Bitcoin ETF™, Fidelity continues to bring innovative investment products to the market," said Kelly Creelman, Senior Vice President, Products and Marketing, Fidelity Investments Canada ULC. "Backed by an industry leading custody solution from Fidelity Clearing Canada, FETH and Fidelity Advantage Ether ETF Fund™ offer more secure and regulated options for investors to gain exposure to ether."
"As Canada's first regulated institutional platform for digital assets, we're proud to be supporting clients like Fidelity Investments Canada," said Scott Mackenzie, President, Fidelity Clearing Canada. "Adding support for ether to our current bitcoin trading, custody and record-keeping offering is an important innovation as demand for digital assets continues to grow."
Why Fidelity Advantage Ether ETF™, Fidelity Advantage Ether ETF Fund™ and Fidelity Clearing Canada?
There are several reasons why investors may wish to invest in these funds instead of purchasing and storing cryptocurrencies directly and why leveraging Fidelity Clearing provides an advantage:
- How It Works - The investment objective of Fidelity Advantage Ether ETF™ is to invest in ether. Fidelity Advantage Ether ETF Fund™ invests in the ETF. When an investor purchases the ETF, they will own units of the ETF, which in turn owns physical ether. The price of units will go up and down directly in relation to the price of ether.
- Fidelity Security Features - Fidelity Advantage Ether ETF™ accesses ether through Fidelity Clearing, which in turn leverages Fidelity's selected trading platforms. The physical ether that the ETF owns is stored using an institutional-grade custodial model, offering the ETF access to the trading and custody of digital assets in a secure way.
- Tax Efficiency and Liquidity - Like all Fidelity ETFs and corresponding mutual fund versions, the new ether funds are eligible for tax-advantaged registered accounts. Similar to purchasing a stock on the exchange, investors can invest in Fidelity Advantage Ether ETF™ the same way they invest in other ETFs, by purchasing ETF units on the exchange.
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals.
As a privately-owned company, our people and world class resources are committed to doing what is right for investors and their long-term success. Our clients have entrusted us with $187 billion in assets under management (as at September 20, 2022) and they include individuals, financial advisors, pension plans, endowments, foundations and more.
We are proud to provide investors a full range of domestic, international and global equity and income-oriented mutual funds, ETFs, asset allocation strategies, managed portfolios, sustainable investing products, alternative mutual funds and a high net worth program. Fidelity is available through a number of advice-based distribution channels including financial planners, investment dealers, banks and insurance companies.
Fidelity Clearing Canada (FCC), a leading provider of custody and clearing services, provides robust, flexible, and scalable solutions to registered portfolio managers, investment dealers and other institutional investors. Clients rely on FCC for expertise in wealth management technology, trading, administration and reporting and business transition, which gives them the freedom to focus on what they do best – helping their investors achieve their financial goals. FCC is the first IIROC member dealer providing Canadian institutional clients with the ability to trade traditional securities and digital assets through the same platform.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund or ETF's prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
Ether has historically demonstrated high volatility. Particular investment strategies should be evaluated based on an investor's tolerance for risk. An investment in these funds is considered high risk.
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SOURCE Fidelity Investments Canada ULC
Chris Pepper, Vice-President, Corporate Affairs, Fidelity Investments Canada ULC, T: (416) 307-5388, M: (416) 795-7762, E: [email protected]
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