Fidelity Investments, which manages $ 4.9 trillion in assets, has submitted documents to the US Securities and Exchange Commission (SEC) for listing as a new fund to be traded on the Bitcoin Exchange (BTC).
The Wise Origin Bitocin Trust was filed with the SEC on Wednesday, following the filing of the S-1 Form that appeared on the regulator’s website. The ETF seeks to track the daily dynamics of the digital currency with the Fidelity Bitcoin Index PR, an index derived from multiple price flows.
From the prospectus:
“Trust provides direct access to Bitcoin, and Trust shares are valued daily using the same index method.”
Corporation is registered in Delaware with Fidelity Digital Asset Services as custodian.
Fidelity says that investors can access the fund through a traditional brokerage account without “the potential barriers to entry or risks associated with storing or transferring bitcoins directly” Like other Bitcoin ETFs on offer, the Fidelity Trust aims to provide more institutional options for cryptocurrencies.
Speculation about US Bitcoin ETFs has been rampant since a bull market in 2017. So far, regulators at the Securities and Exchange Commission have rejected all Bitcoin ETF guarantees proposals due to concerns about extreme volatility and price manipulation. Supporters of the major cryptocurrency believe the situation could change now as Bitcoin matures as an asset class.
Goldman Sachs last week unveiled a new ETF that includes an option to add BTC. The bulletin says that bonds tied to an ETF with a virtual coupon with an automatic call “may have a relationship with a cryptocurrency such as Bitcoin indirectly through an investment in donor credit.”
North of the border, Canadian regulators approved two Bitcoin ETFs. The Bitcoin ETF, launched in mid-February, brought in $ 100 million in the first few hours of trading.
Fidelity was one of the first major organizations to adopt cryptocurrencies. The company began mining Bitcoin and Ethereum (ETH) in 2014, the same year that Abigail Johnson became president and CEO of the company.