Fidelity Covington Trust has announced plans to liquidate its Metaverse ETF, a significant move that will affect shareholders and the broader investment landscape. The decision, approved by the Board of Trustees on October 14, 2026, comes amid challenges faced by funds focused on emerging technologies.

The liquidation process is set to begin with the fund expected to cease accepting creation orders after the close of business on November 12, 2026. This date will also mark the last day of trading for the fund's shares on Nasdaq. Shareholders will be able to sell their shares until market close on that day, but after that, trading will halt, and there may not be a market for the shares until the liquidation is complete.

Fidelity Covington Trust, incorporated in Massachusetts, operates as an investment entity. The trust is known for managing several ETFs, including the Fidelity Clean Energy ETF and the Fidelity Cloud Computing ETF.

According to the filing, the Metaverse ETF will begin to deviate from its investment objectives as it prepares for liquidation. The fund's assets will be transitioned into cash or other liquid assets before the Liquidation Date, which is anticipated to be on or about November 19, 2026.

During the liquidation process, shareholders should be aware of potential tax implications. The proceeds from the liquidation will be distributed based on the net asset value of shares held on the Liquidation Date. This may result in capital gains or losses, depending on individual circumstances, and shareholders are advised to consult their tax advisors.

The filing does not specify what happens next after the liquidation process, but it is clear that this decision reflects the current challenges within the investment landscape, particularly for funds targeting high-risk, high-reward sectors like the metaverse.