Fidelity has filed an application with the US Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF). The ETF will track the price of bitcoin, as measured by the Fidelity Bitcoin Index.
Fidelity seeks SEC approval for bitcoin ETF
FD Funds Management, a subsidiary of Fidelity, said it plans to financially back a bitcoin ETF called Wise Origin Bitcoin Trust, reports CNBC. The company filed a pre-registration statement on Form S-1 with the Securities and Exchange Commission on Wednesday.
The filing explains that Bitcoin Trust Wise is an exchange-traded fund that issues common stock traded on an as-yet undesignated exchange:
The investment objective of the Trust is to track the performance of bitcoin as measured by the Fidelity Bitcoin Index PR … adjusted for the Trust’s expenses and other liabilities.
The ETF is sponsored by FD Funds Management and the trustee is Delaware Trust Company. Fidelity Digital Asset Services LLC (FDAS) is the custodian of the Trust and will hold all BTCs of the Trust on behalf of the Trust, as described in the documentation. The Fidelity Bitcoin Index PR is designed to reflect the performance of bitcoin in US dollars.
CNBC reports that Fidelity has confirmed that it has filed a prospectus to sponsor a bitcoin ETF. However, due to the provisional nature of the application, the company refrained from further comments.
In an emailed statement, Fidelity wrote that a growing number of investors seeking access to bitcoin underscores and clarifies the need for a more diverse set of products that provide access to digital assets:
The digital asset ecosystem has grown significantly in recent years, creating an even more robust market for investors and increasing demand from institutions.
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