Fidelity Applies To Launch Bitcoin ETF

Asset manager Fidelity has backed a new application to create an Exchange Traded Fund (ETF) based on Bitcoin.

Wise Origin Bitcoin ETF is sponsored byFD Funds Management LLC, Fidelity Service Company, Inc. - its administrator, and Fidelity Digital Assets - custodian. According to the application, FD Funds Management LLC has a single address with Fidelity in Boston. If approved, Fidelity intends to use its own index to determine the price of bitcoin.

“The investment objective of the trust istracking bitcoin movements in accordance with the Fidelity Bitcoin Index PR, taking into account the costs and other obligations of the trust, the document says. - The trust provides direct access to Bitcoin. Its shares are valued on a daily basis in accordance with the methodology used in the index. The trust provides investors with the ability to access bitcoin through traditional brokerage accounts without the potential barriers to entry or risks associated with storing or transferring bitcoin directly, purchasing bitcoin on the spot market, or mining it. ”

ETF shares a similar name with another fundFidelity, launched in August 2020 - Wise Origin Bitcoin Index Fund I. This is a passively managed fund that became Fidelity's first pure Bitcoin-based instrument for qualified investors.

Currently under consideration by the SEC there areseveral Bitcoin ETF applications, including those from VanEck, NYDIG, and WisdomTree. Industry participants hope that the SEC, which in the past has rejected all applications to launch such an instrument, will change its attitude towards this issue with the arrival of the new administration. Several Bitcoin ETFs have been approved recently in Canada and Brazil. Fidelity ranks among the largest asset managers in the world with $ 8.3 trillion as of June 2020.

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