A new filing with the US Securities and Exchange Commission indicates that asset management giant Fidelity is looking to create a bitcoin exchange-traded fund (ETF).
The Wise Origin Bitcoin ETF is the latest entrant in a growing race to launch an exchange-traded bitcoin product in the United States. According to the filing, a company called FD Funds Management LLC is the sponsor of the fund, with Fidelity Service Company, Inc. acting as the administrator. According to the document, FD Funds Management LLC shares the same Boston, MA address as Fidelity’s headquarters.
Fidelity Digital Assets, the crypto-focused arm of the asset manager, will act as custodian.
The ETF, if approved, will also employ Fidelity’s internal bitcoin price index, according to the filing.
“The investment objective of the Trust is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR (the” Index “), adjusted for expenses and other liabilities of the Trust,” the presentation notes, explaining in another part:
“The Trust provides direct exposure to bitcoin, and the Trust Shares are valued daily using the same methodology used to calculate the Index. The Trust provides investors the opportunity to access the bitcoin market through a traditional brokerage account. possible barriers to entry or risks related to the holding or direct transfer of bitcoins, their acquisition of a spot market for bitcoins or their extraction. “
The name of the fund is similar to the Wise Origin Bitcoin Index Fund I, launched in August 2020 by Fidelity. As reported at the time by Bloomberg, that passively managed fund was Fidelity’s first foray into offering a bitcoin-only fund product to qualified investors.
“The digital asset ecosystem has grown significantly in recent years, creating an even more robust market for investors and accelerating demand among institutions. 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, “a Fidelity spokesperson told The Block.
Fidelity’s effort represents the sixth of its kind in the US, joining WisdomTree Investments, VanEck Associates Corp., NYDIG Asset Management, First Advisors / SkyBridge and Valkyrie Digital Assets.
Market watchers have speculated that recent ETF developments in Canada may prompt regulators in the US to take action on a bitcoin ETP.
This is a developing story and will be updated.