A new filing with the U.S. Securities and Exchange Commission indicates that asset management giant Fidelity is seeking to create a bitcoin exchange-traded fund (ETF).
The Wise Origin Bitcoin ETF is the latest entrant in a growing race to launch a bitcoin exchange-traded product in the United States. According to the filing, a firm called FD Funds Management LLC is the sponsor of the fund, with Fidelity Service Company, Inc. serving as administrator. Per the document, FD Funds Management LLC shares the same Boston, MA address as Fidelity’s office.
Fidelity Digital Assets, the asset manager’s crypto-focused arm, will serve as custodian.
Fidelity’s in-house bitcoin price index, per the filing.
“The Trust’s investment objective is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR (the “Index”), adjusted for the Trust’s expenses and other liabilities,” the filing notes, explaining elsewhere:
“The Trust provides direct exposure to bitcoin, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from a bitcoin spot market, or mining it.”
The fund’s name is similar to the Wise Origin Bitcoin Index Fund I, launched in August 2020 by Fidelity.
Recently, SEC Chairman Gary Gensler hinted that the securities regulator can approve a Bitcoin ETF. However, the Bitcoin ETF has to track the price of Bitcoin futures offered by the CME Group.
Besides, it will be subject to stricter rules as applicable to mutual funds.
Commenting on this in the filing, Fidelity stated:“We believe bitcoin futures-based products are not a necessary interim step before a bitcoin ETP; firms should be able to meet investor demand for direct exposure to bitcoin through ’33 Act bitcoin ETPs because the bitcoin market has matured and can support them.”
Fidelity was first involved with cryptocurrencies nearly seven years back.
Giant fidelity files for etfal
On Sept. 8, Fidelity Digital Assets president Tom Jessop and six of the firm’s executives attended a private video meeting with several SEC officials. As per the recentfiling, the asset management giant urged the U.S.
Securities and Exchange Commission (SEC) to approve its Bitcoin exchange-traded fund (ETF).
According to a presentation from the meeting, they explained why the U.S. regulator should approve the proposed product. The reason mainly included:
- “Increased investor appetite”for virtual currencies, especially for Bitcoin.
- The growth of the “Bitcoin market has matured.” It can support such funds, and investors would benefit from the opportunity to have direct exposure to BTC via an exchange-traded product (ETP).
Investment management behemoth Fidelity has submitted an application for an exchange-traded fund (ETF) that would monitor the performance of public firms that are developing and marketing products for the metaverse.
According to the filing submitted on January 27, the Fidelity Metaverse ETF will track the Fidelity Metaverse Index, which tracks “the performance of a global universe of companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.”
Fidelity’s application is the latest in a long line of corporations attempting to capitalize on the growing interest in the metaverse.
Financial giant Fidelity Investments is now planning to launch its own Bitcoin exchange-traded-fund (ETF). On Wednesday, March 24, Fidelity submitted the Form S1filingwith the U.S.
Securities and Exchange Commission (SEC).
In the filing, Fidelity subsidiary FD Funds Management said that it plans to offer the financial backing for the ETF called the Wise Origin Bitcoin Trust. The Fidelity’s Bitcoin ETF aims to track the performance of the Bitcoin movement as tracked by the Fidelity Bitcoin Index.
Although Fidelity has confirmed about filing the prospectus, it has refused to comment further on this matter owing to the preliminary nature of filing.
However, the key question here remains whether or not the SEC will approve the ETF applications.
Over the last two years, the securities regulator has turned down and rejected over a dozen proposal of Bitcoin ETF.
Bitcoin ETF, joining a growing number of other, though smaller, firms that have done the same.
According to the filing, the Wise Origin Bitcoin Trust would track the performance of Bitcoin as measured by the Fidelity Bitcoin Index PR, which continually updates Bitcoin prices throughout the day based on feeds from multiple spot markets and a volume-weighted median price (“VWMP”) methodology. Fidelity Digital Assets Services, which launched in late 2018, would serve as custodian.
Fidelity has already introduced the Wise Origin Bitcoin Index Fund I, which is available only to qualified investors and requires a minimum $100,000 investment.
In a statement released following its Bitcoin ETF filing Fidelity said: “The digital ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions.
Investment management giant Fidelity Canadian branch has announced plans to allocate a section of Bitcoin exposure to its All-in-One Growth ETF and All-in-One Balanced ETF.
In a press statement, Fidelity indicated that the all-in-one products would be available both as mutual funds and exchange-traded funds (ETFs).
According to Fidelity, the latest product is part of diversifying its offering to clients alongside improving risk-adjusted returns for the future.
Following the addition, Fidelity also revealed it would be changing the risk ratings of Fidelity All-in-One Growth ETF and Fidelity All-in-One Growth ETF Fund to “medium” from “low-to-medium.”
Worth noting is that Fidelity has on several occasions attempted to launch a similar product in the United States, but the strict regulatory barriers have impeded the company.
Feingold had been the fund’s sole manager since 2011.
Launched in May 1963, the Fidelity Magellan has had nine managers, its most famous of whom was its third manager, Peter Lynch, who averaged a 29% annual return following his ‘buy what you know’ mantra.
The fund is ranked 224 out of 358 Large Growth funds tracked by Citywire for three-year total returns to the end of August, during which time it was up 67.4% compared to the category average’s 70.2%.
Simnegar joined Fidelity in 1998 and has been with Fidelity for 25 years.
Michael Kim and AAA-rated Kyle Weaver will manage the Growth Opportunities ETF, Steve Buller and Zhitong Zhang will manage the Real Estate Investment ETF, and Gannon and Michelle Hoerber will manage the Small-Cap Opportunities ETF.
None of the four ETFs have expense ratios listed at this time.
The Fidelity Bitcoin ETF, is the second big ETF application this week. Earlier on Monday, March 21, Skybridge Capitalappliedfor a Bitcoin ETF application with the U.S.
Currently, there are eight Bitcoin ETF applications that are awaiting the SEC approval. A decision from the securities regulator will likely arrive in the next 45 days.
On the other hand, the Chicago Board Options Exchange (CBOE) is planning to come back to the Bitcoin futures market once again.
Speaking to Bloomberg, CBOE CEO Ed Tillysaid:“We’re still interested in the space, we haven’t given up on it.We’re keen on building out the entire platform.
In the U.S., Fidelity intended to unveil an ETF that will track the performance of Bitcoin as measured by the movement of the Fidelity Bitcoin Index, a barometer the firm established to track the price of the digital currency.
“An increasingly wide range of investors seeking access to Bitcoin has underscored the market need for a more diversified set of products offering exposure to digital assets to match demand,” said Fidelity spokeswoman Nicole Abbott.
The latest product that takes effect later this month adds to Fidelity’s stance as a pro-Bitcoin traditional company. Over the recent months, the company has unveiled several products tracking the performance of Bitcoin.
For instance, in November, the company launched the Fidelity Advantage Bitcoin ETF and a corresponding mutual fund that invests directly in cryptocurrency.