Introduction

The Fidelity Crypto Industry and Digital Payments ETF, known as FDIG with a value of $26.73, is a recently launched cryptocurrency-focused ETF that made its debut in April 2022.

This fund is designed to mirror the Fidelity Crypto Industry and Digital Payments Index, which includes companies engaged in cryptocurrency operations, blockchain technology, and processing digital payments.

The ETF's selection process begins with a global pool of equities, filtering out companies based on trading volume and market capitalization. The remaining firms are categorized into two groups: Crypto and Blockchain stocks, as well as Digital Payments stocks.

Inclusion criteria involve companies deriving at least 50% of their revenue from the crypto and blockchain sectors, alongside the top 20 digital payments stocks that earn half of their revenue from digital payment processing.

Approximately 60% of the index is composed of cryptocurrency and blockchain firms. Each stock's maximum weight is capped at 22.5% or the highest weight supporting $20 million in average daily volume, with rebalancing conducted on a quarterly basis.

As of now, FDIG holds approximately 45 companies, with the top 10 stocks representing close to 60% of its total assets. The top holdings in the ETF include Coinbase Global, Marathon Digital Holdings, and Bitcoin miner Riot Platforms (RIOT).