Leading financial services provider Fidelity set to launch a BTC ETF
- Fidelity filed the ETF application on March 24 with hopes of expanding its crypto services.
- Per Fidelity, the ETF will offer direct exposure to BTC via traditional brokerage accounts.
- The Wise Origin Bitcoin Trust will use the custody services of Fidelity Digital Assets Services.
Fidelity Investments, a renowned financial services provider, is gearing up to roll out a Bitcoin (BTC) exchange-traded fund (ETF). A report unveiled this news on March 25, citing an official filing with the US securities exchange commission (SEC). Reportedly, the company made this decision with hopes that this launch will help it expand its digital currency business.
Fidelity made the filing on March 24, seeking the approval of the SEC before it proceeds to roll out its Wise Origin Bitcoin Trust. Per Fidelity, this trust, once approved, would offer its clients direct exposure to bitcoin. Allegedly, the trust’s shares will be valued daily using the same methodology used to calculate the Index.
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The firm went on to note that the Wise Origin Bitcoin Trust would give investors a chance to access the BTC market through a traditional brokerage account. As such, it will minimize the potential entry barriers and risks associated with holding or transferring BTC directly, purchasing the coins from a spot market, or mining them.
Increasing institutional demand for BTC spurs ETF resurgence
This news comes as the demand for BTC and other leading cryptocurrencies by institutional investors continues rising following the crypto market’s stellar performance. The most recent corporate firm to add BTC to its balance sheet was Chinese technology firm Meitu, which purchased £38.5 million worth of BTC and ETH on March 18. Explaining why it had decided to dive head-first into crypto the firm said that it believes cryptocurrencies have vast potential for appreciation.
Before Meitu, other renowned firms such as Tesla and MicroStrategy also made significant investments in the crypto sector. However, all these firms took a direct approach and bought BTC. However, not all institutions are willing to stake their funds against the volatility of the crypto market.
To this end, several companies have entered the crypto ETF space to help such risk-shy investors dip their toes in crypto. These include Valkyrie Digital Assets, Purpose Investments Inc., VanEck, QR Assets Management, and Hashdex, just to mention a few.