Fidelity takes aim at the digital asset market
The company is launching a new fund, FEQHX
It targets the S&P 500 and foresees the possibility of alternative investments
A new press release was issued yesterday, September 8, on Fidelity’s official website. It talks about the launch of a new fund, the Fidelity Hedged Equity Fund (FEQHX). This may indicate the company’s desire to tap into the retail investor segment by offering them new crypto products.
The new fund will create an equity portfolio with characteristics as close to the S&P 500 as possible. In doing so, the product will receive downside protection in certain market conditions, which will act as a major holding.
It also appears from the press release that the fund will invest up to 80% in equity securities. It may also include certain alternative investments such as: distressed loans, real estate debt, private equity and bitcoins.
This one, like the other funds, is managed by a special adviser, Fidelity Diversifying Solutions LLC. The company also says it supports alternative investments and welcomes diversification of traditional assets.
It should be noted that Fidelity is one of the largest investment companies in the world. It manages $4.5 trillion in assets and its revenues reach $24 billion. The firm focuses on pension funds.
The launch of a product for retail investors with the ability to invest in cryptocurrencies by such “orthodoxy” is a very good sign. Usually, conservative companies are reluctant to do business with the digital asset market because of the high volatility and speculative nature of the latter.
Fidelity also has added the ability to invest pension savings in bitcoin. The process is automatic; all you need to do is agree it with your employer.
