Fidelity Investments has revealed an initiative to launch an exchange traded fund (ETF) that tracks the price of Bitcoin, the flagship cryptocurrency.
FD Funds Management, a subsidiary of Fidelity, has submitted an S-1 filing to the Securities and Exchange Commission (SEC) outlining its intent to financially back the ETF. Over the past twelve months, the price of Bitcoin has surged over 700% to about $57,774.
Fidelity Plans Bitcoin ETF Launch As Cryptocurrency Continues Mainstream Trend
The ETF, called Wise Origin Bitcoin Trust, will certainly track the cryptocurrency with the Fidelity Bitcoin Index, which takes spot prices from numerous Bitcoin exchanges.
This is the current action by Fidelity to bring cryptocurrencies into the mainstream. The famed money management firm formerly tried out mining cryptocurrency, enabled customers to contribute electronic assets to charities, and launched strategies to store and trade Bitcoin for high-net-worth and experienced investors.
SEC Shot Down Nine Bitcoin ETF Proposals in 2018
Nevertheless, the ETF still requires approval by the SEC, which previously denied applications for nine Bitcoin ETFs in 2018. The regulator formerly argued that the marketplace was not all set for a Bitcoin ETF yet. However, the SEC recently recognized a Bitcoin ETF proposition from VanEck.
The latest push by Fidelity to bring a Bitcoin ETF market comes as Canadian securities regulators have approved three similar funds so far this year. Most recently, regulators approved the launch of CI Galaxy Bitcoin ETF from CI Global Asset Management. The ETF trades on the Toronto Stock Exchange (TSX) under the symbol “BTCX,” and began trading in early March 2021.
The price of Bitcoin has seen a pullback recently into the $57,000s. However, considering the cryptocurrency was trading under $10,000 just a year ago, the returns have been stellar for long-term holders.
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