Asset management giant Fidelity files for Bitcoin ETF


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Fidelity Investments, the $ 4.9 trillion asset manager, has filed with the Securities and Exchange Commission to list a new Bitcoin (BTC) exchange-traded fund.

The Wise Origin Bitocin Trust was filed with the SEC on Wednesday. This is evident from a Form S-1 Registration Statement posted on the regulator’s website. The ETF aims to track the daily performance of the digital currency using the Fidelity Bitcoin Index PR, an index derived from several price feeds.

From the prospectus:

“The Trust provides direct exposure to Bitcoin and the Trust’s shares are valued daily using the same method that was used to calculate the Index.”

The Fund is incorporated in Delaware with Fidelity Digital Asset Services listed as the custodian.

According to Fidelity, investors can access the fund through a traditional brokerage account without the “potential barriers to entry or risks associated with holding or transferring Bitcoin directly”. Like other proposed Bitcoin ETFs, the Fidelity Trust aims to provide more institutional avenues to cryptocurrencies.

Speculation about a US Bitcoin ETF has been rife since the bull market in 2017. So far, SEC lawmakers have rejected any proposal to securitize Bitcoin in an ETF because of concerns about extreme volatility and price manipulation. Proponents of the flagship cryptocurrency believe the tide may change after Bitcoin matures as an asset class.

Last week, Goldman Sachs filed for a new ETF that includes the option to add a BTC exposure. The ETF-linked bonds with automatically retrievable coupon coupons can be “indirectly exposed through an investment in a Grantor Trust cryptocurrency such as Bitcoin,” says the prospectus.

North of the border, Canadian regulators have so far approved two Bitcoin ETFs. The Purpose Bitcoin ETF, which was launched in mid-February, achieved a volume of USD 100 million in the first hours of trading.

Fidelity was among the first major institutions to introduce cryptocurrencies. The company began mining Bitcoin and Ethereum (ETH) in 2014. In the same year, Abigail Johnson became the company’s President and CEO.