Fidelity Plans on Launching a Bitcoin ETF

Jafrin  |  Mar 25, 2021

Fidelity Investments is looking to launch its own Bitcoin exchange-traded fund (ETF), a preliminary filing to the U.S. Securities and Exchange Commission (SEC) shows. If approved, the proposed Bitcoin ETF will track its price trends as measured by the firm’s in-house Fidelity Bitcoin Index.

Fidelity Intends to Launch Wise Origin Bitcoin Trust

Fidelity’s ETF called the Wise Origin Bitcoin Trust intends to hold the cryptocurrency and value its shares based on prices from various popular exchanges including Coinbase and Bitstamp among others.

A subsidiary for the ETF called the FD Funds Management plans to provide financial backings for exchange-traded funds. While Fidelity Digital Assets will serve as the custodian for Wise Origin BTC Trust.

The ETF if approved by the U.S. Securities and Exchange Commission would be available for purchase on the large brokerage and wealth-management platforms.

The filing read:

“The Trust provides investors with the opportunity to access the market for Bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring Bitcoin directly, acquiring it from a Bitcoin spot market, or mining it.” 

In 2018, the firm established Fidelity Digital Assets, a subsidiary that oversees cryptocurrency custody and trading solutions that includes clients ranging from institutional investors and hedge funds.

U.S. SEC Has Not Approved Any Bitcoin ETFs Till Yet

Fidelity is the sixth asset management firm in the United States to file for a Bitcoin ETF, following WisdomTree, Valkyrie Digital Assets. VanEck, Skybridge, and NYDIG.

Till yet, the U.S. SEC has not approved any company to create a Bitcoin ETF, arguing that the market was not ready yet. In 2018, the regulatory agency rejected applications for nine BTC ETFs.

Whether the SEC approves Fidelity’s application for creating a Bitcoin ETF still remains yet to be seen.

Over the year, BTC has seen a growing number of institutional investors looking to purchase the cryptocurrency. The digital asset is currently trading around $52,764 where last year it was trading just under $10,000.

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