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- The Wise Origin Bitcoin ETF represents the recent entry in the currently ongoing race in the U.S. to release a bitcoin exchange-traded product
- Per the filing, a company called FD Funds Management LLC is sponsoring the fund
- Fidelity Digital Assets is likely to play the role of a custodian
A fresh registration with the SEC of the U.S. suggests that Fidelity, an asset management firm, is all set to establish a Bitcoin exchange-traded fund.
Fidelity’s entry into the space of Bitcoin ETFs
The Wise Origin Bitcoin ETF represents the recent entry in the current race in the U.S. to release a bitcoin exchange-traded product. Per the filing, a reputable firm FD Funds Management LLC is responsible for sponsoring the fund. The firm did this in collaboration with Fidelity Service Company, Inc., where the latter will serve an administrator’s role.
Fidelity Digital Assets, the asset manager’s crypto-oriented division, is likely to play a custodian role. The filing notes that if the ETF gets sanctioned, it will utilize the procedure applicable to Fidelity’s in-house bitcoin price index.
The conduct of the Fidelity Bitcoin Index PR
The filing suggests that the Trust’s investment objective is to trace the performance and the functioning of bitcoin. The Fidelity Bitcoin Index PR will measure the respective performance of BTC, customized particularly for the Trust’s expenditure and various liabilities.
The filing further emphasizes that the Trust will facilitate the users with direct exposure to bitcoin. Besides, the shares’ value is constituted daily through the same procedure employed to calculate the Index. The Trust offers traders the opportunity to avail the services of the market for bitcoin with a conventional brokerage profile without the potential restrictions to entry or risks attached to holding or shifting bitcoin directly, obtaining it from a spot market Bitcoin, or mining it.
The fund’s name follows the league of Fidelity’s Wise Origin Bitcoin Index Fund I, released in August 2020. As per Bloomberg’s report in those times, the passively-handled fund was Fidelity’s debut foray into facilitating qualified traders with a bitcoin-only fund product.
A Fidelity spokesperson addressed how the digital assets ecosystem is growing significantly, establishing an even more vigorous marketplace for traders and boosting demand among institutions. An increasingly wide array of traders trying to find bitcoin access implies that there is an underscoring need for a more multiform set of products providing exposure to digital assets.
Fidelity’s current effort constitutes the sixth of its type within the space of the U.S., wherein it now joins the league of WisdomTree Investments, NYDIG Asset Management, Valkyrie Digital Assets, and many others.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
