Fidelity Files To Launch Bitcoin ETF

Image source: Wise Origin Bitcoin Trust, Form S-1, March 24, 2021, sec.gov

Fidelity Investments became the latest financial institution to file for regulatory approval to launch a bitcoin exchange-traded fund (ETF).

According to a Form S-1 filing Wednesday with the US Securities and Exchange Commission, the Wise Origin Bitcoin ETF will be sponsored by FD Funds Management LLC and the Fidelity Service Company Inc will serve as administrator. 

The ETF would track the cryptocurrency using underlying prices from exchanges that include Bitstamp, Coinbase, Gemini, itBit and Kraken, the filing said.

“The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions,” Fidelity said in a statement to Reuters. “An increasingly wide range of investors seeking access to bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets.” 

Fidelity’s move comes amid a wave of bitcoin ETF filings by various entities, all seeking to be the first to launch. Since January, VanEck Global, SkyBridge Capital, Stone Ridge Holdings Groups’ NYDIG and Valkyrie Investment’s Valkyrie Digital Assets filed for their own ETFs.

The SEC has yet to grant any company permission to create a bitcoin ETF, saying that the market was not ready despite the growing number of applications, according to CNBC. 

Reuters recently noted that many mainstream companies, like Tesla Inc, and financial firms, including Bank of New York Mellon Corp, have embraced the asset, sparking speculation that bitcoin and other cryptocurrencies will become a regular part of investment portfolios. 

Fidelity was among the first major financial firms to embrace cryptocurrencies, and its chief executive officer, Abigail Johnson, has championed the market’s potential.  

Fidelity set up a unit in 2018 that provides cryptocurrency custody and other services for financial firms and corporations.  In September 2020, it started offering a private bitcoin investment fund to certain qualified investors.

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Source: Equities News