Fidelity Registers a Bitcoin ETF

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Asset management behemoth Fidelity is preparing the launch of a Bitcoin exchange-traded fund and yesterday filed the registration form S-1 with the Securities and Exchange Commission, a move that reflects the increased institutional interest in the crypto.

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The Wise Origin Bitcoin Trust ETF will track Bitcoin performance as measured by the performance of the Fidelity Bitcoin Index PR, according to the SEC filing.

The filing notes that FD Funds Management is the sponsor of the fund, and Fidelity Digital Asset Services — Fidelity’s digital arm — is its custodian.

“Some market observers have asserted that the bitcoin market is experiencing a “bubble” and have predicted that, in time, the value of bitcoin will fall to a fraction of its current value, or even to zero. Bitcoin has not been in existence long enough for market participants to assess these predictions with any precision, but if these observers are even partially correct, an investment in the Shares may turn out to be substantially worthless,” the filing notes.

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Fidelity’s Bitcoin Index PR is constructed using Bitcoin price feeds from eligible Bitcoin spot markets and a volume-weighted median price methodology calculated every 15 seconds and designed to reflect the performance of Bitcoin in U.S. dollars, according to the filing.

Fidelity follows other asset managers that recently filed for registration for Bitcoin ETFs, including VanEck, which registered the The VanEck Vectors Bitcoin ETF last week, and NYDIG, which registered the NYDIG Bitcoin ETF last month.

See: Morgan Stanley Will Offer Wealthy Clients Access to Bitcoin Funds
Find: Goldman Sachs to Restart Cryptocurrency Trading Desk as Bitcoin Rally Continues

Last week, Morgan Stanley announced it will be the first U.S. bank to offer bitcoin to its wealthier clients, amid an increased institutional interest in Bitcoin and the crypto’s meteoric ascent of late. And earlier this month, Goldman Sachs said it was restarting its cryptocurrency trading desk.

Bitcoin broke the $60,000 ceiling for the first time earlier this month and stood at $52,300 this morning.

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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