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Fidelity Investments Files with U.S. SEC for Bitcoin ETF

Fidelity Investments Files with U.S. SEC for Bitcoin ETF
C85X4A The Fidelity Investments office at 1625 Broadway, Suite 110, Denver Colorado, USA.

The $4.9 trillion asset manager, Fidelity Investments Inc., seeks approval from the U.S. SEC to introduce a Bitcoin ETF (exchange-traded fund). The Wise Origin Bitcoin Trust was filed with the SEC on Wednesday, according to a Form S-1 Registration Statement that emerged on the regulator’s website. The ETF intends to track the digital currency’s daily performance employing the Fidelity Bitcoin Index PR. Moreover, it is an index that’s derived from various price feeds. Fidelity Digital Assets, the asset manager’s crypto-based arm, will act as custodian. 

Fidelity has registered its Bitcoin ETF as Wise Origin Bitcoin Trust, which would hold Bitcoin and value its shares based on prices from significant crypto exchanges Bitstamp and Coinbase. It is as per the initial filing with the SEC. Like other filed Bitcoin ETFs, the Fidelity Trust proposes more institutional opportunities to fund crypto assets. The ETF would provide retail investors to speculate on the leading cryptocurrency price without buying and storing the crypto-assets themselves. 

Fidelity Investment was one of the First Organization to offer Cryptocurrencies

Moreover, this proposed ETF is not Fidelity’s first expansion into the crypto world as the firm is developing into the world of digital currencies. Moreover, Fidelity Investments was one of the first significant institutions to provide cryptocurrencies to clients. The firm commenced mining Bitcoin and Ethereum in 2014 and launched Fidelity Digital assets in 2018, a subsidiary that has expanded its crypto trade execution and custody operations.

Fidelity’s filing designates the sixth of its kind in the U.S., following WisdomTree Investments, VanEck Associates Corp., NYDIG Asset Management, First Advisors/SkyBridge, and Valkyrie Digital Assets. Last week, Goldman Sachs registered for a new ETF that includes the option to attach Bitcoin exposure. Market analysts have contemplated that various Bitcoin ETF approvals in Canada may encourage U.S. regulators to provide Bitcoin ETFs one chance.

Rumors regarding a U.S. Bitcoin ETF have been doing rounds since the 2017 bull market. To date, lawmakers at the SEC have rejected every proposal to securitize Bitcoin in an ETF over matters of extreme volatility and price manipulation. Defenders of the leading cryptocurrency think the course could be switching now that Bitcoin has developed as an asset class. We await to see if the U.S. SEC will finally approve Bitcoin ETF in the U.S.

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