management fidelity files for bitcoin etf

Bitcoin has not been in existence long enough for market participants to assess these predictions with any precision, but if these observers are even partially correct, an investment in the Shares may turn out to be substantially worthless,” the filing notes.

See: How to Invest In Cryptocurrency — What You Should Know Before InvestingFind: The Crypto Craze Continues – Bitcoin ATMs Are Popping Up Across the US

Fidelity’s Bitcoin Index PR is constructed using Bitcoin price feeds from eligible Bitcoin spot markets and a volume-weighted median price methodology calculated every 15 seconds and designed to reflect the performance of Bitcoin in U.S.


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Management fidelity files for 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.

Management fidelity files for bitcoin etfal

Fidelity follows other asset managers that recently filed for registration for Bitcoin ETFs, including VanEck, which registered the The VanEck Vectors Bitcoin ETF last week, and NYDIG, which registered the NYDIG Bitcoin ETF last month.

See: Morgan Stanley Will Offer Wealthy Clients Access to Bitcoin FundsFind: Goldman Sachs to Restart Cryptocurrency Trading Desk as Bitcoin Rally Continues

Last week, Morgan Stanley announced it will be the first U.S. bank to offer bitcoin to its wealthier clients, amid an increased institutional interest in Bitcoin and the crypto’s meteoric ascent of late.

An increasingly wide range of investors seeking access to bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets.

The SEC has to date rejected several bitcoin ETFs as it argues the market is not yet ready, despite a growing number of applications. Fidelity’s move comes after bitcoin ETFs were listed in Canada and Brazil.

Last week, as CNBC reports, the SEC acknowledged a bitcoin ETF proposal from VanEck. While Fidelity’s ETF will not sell bitcoin directly it will use the cryptocurrency to pay for certain expenses, which would be considered a sale of the BTC under the current IRS guidance.

It’s worth noting Fidelity has ventured into the cryptocurrency space in the past.

It established Fidelity Digital Assets in 2018, a subsidiary that is offering cryptocurrency custody and trade execution services.

The Trust will not invest in derivatives.

Bitcoin Risk

Several factors may affect the price of bitcoin, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of bitcoin or the use of bitcoin as a form of payment. The issuance of bitcoin is determined by a computer code, not by a central bank, and prices can be extremely volatile. For instance, during the period from December 17, 2017 to December 14, 2018, bitcoin experienced a decline of roughly 84%.

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 Trust will custody its bitcoin at an affiliate of the sponsor, Fidelity Digital Assets Services, LLC, a New York state limited liability trust company that provides custody and trade execution services for digital assets.

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.

Fidelity Investments, a financial giant with over $4.9 trillion in assets under management, has filed with the United States Securities and Exchange Commission (SEC) to list a new bitcoin exchange-traded fund (ETF).

The ETF, according to Reuters, would be launched by Fidelity subsidiary FD Funds Management, and would be called the Wise Origin Bitcoin Trust. It would hold bitcoin and the value of its shares would be based on the Fidelity Bitcoin Index, which tracks the price of the flagship cryptocurrency at major exchanges including Coinbase and Bitstamp.

In a statement, Fidelity said:

The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions.

There is no assurance that bitcoin will maintain its long-term value in terms of purchasing power in the future, or that acceptance of bitcoin payments by mainstream retail merchants and commercial businesses will continue to grow.

Bitcoin ETFs are providing a level of competition for the Grayscale Bitcoin Trust (GBTC), which is a way for investors to get exposure to Bitcoin in the form of shares. GBTC now had a negative premium for an entire month. This means the price of each share remains below the corresponding amount of Bitcoin it represents.
Grayscale has a tremendous incentive to get the liquid shares back to net asset value or a premium.

Bitcoin exchange-traded fund and yesterday filed the registration form S-1 with the Securities and Exchange Commission, a move that reflects the increased institutional interest in the crypto.

See: Elon Musk — ‘You Can Now Buy Tesla with Bitcoin’ Find: Biden Is Weighing New Rules for Bitcoin Investors – Here’s What Might Change

The Wise Origin Bitcoin Trust ETF will track Bitcoin performance as measured by the performance of the Fidelity Bitcoin Index PR, according to the SEC filing.

The filing notes that FD Funds Management is the sponsor of the fund, and Fidelity Digital Asset Services — Fidelity’s digital arm — is its custodian.

“Some market observers have asserted that the bitcoin market is experiencing a “bubble” and have predicted that, in time, the value of bitcoin will fall to a fraction of its current value, or even to zero.

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