Fidelity Investments is set to launch its own bitcoin exchange-traded fund to expand its portfolio in digital assets and virtual currency, according to the company’s filling.
- Fidelity subsidiary FD Funds Management will provide financial backing for the ETF called the Wise Origin Bitcoin Trust.
- The ETF will track the performance of bitcoin as measured by the Fidelity Bitcoin Index.
- The Fidelity-backed trust will use the cryptocurrency to pay expenses. Under the current IRS guidance, this will be treated as a sale of the digital coin.
- A preliminary registration statement for the fund was already filed with the Securities and Exchange Commission (SEC). The regulator has not yet granted any bitcoin ETF, arguing the market is not ready despite a growing number of applications.
- Fidelity confirmed that it filed a prospectus, but declined to elaborate on the filing.
- Fidelity Digital Assets was established in 2018, and has since offered cryptocurrency custody and trade execution operations.