Fidelity Seeks To Launch Its Own Bitcoin ETF: Report

Fidelity seeks to launch its own Bitcoin exchange-traded fund with the financial giant seeking approval from the SEC according to a new filing that we have in our latest Bitcoin news today.

Fidelity is one of the largest financial institutions in the world that is seeking approval from the US Securities and Exchange Commission to launch a BTC ETF according to the new SEC filing. The exchange-traded fund that allows retail investors to bet on the price of BTC without having to purchase and store the crypto themselves, will be registered as the Wise Origin Bitcoin Trust and Fidelity will serve as an administrator while the Digital Assets branch will custody the physical BTC underlying the ETF if it gets approved.

The SEC has yet to approve a Bitcoin ETF through plenty of companies file for one. Gemini for example, owned by the Winklevoss twins filed for a few Bitcoin ETFs since 2013. SkyBridge Capital’s Anthony Scramucci filed for one as well with VanEck has been trying to launch for a few years. Crypto investors were clamoring for an ETF over the past few months and companies like Galaxy Digital and Grayscale started offering similar crypto investment products that attempted to fill the needs. The Grayscale Bitcoin Trust now has over $36 billion in Bitcoin under management but it is trading at a premium of 12%.

The proposed ETF is not Fidelity’s first foray into the crypto world. Fidelity seeks to launch a new one a year after the bank launched the first BTC-only investment product in the form of the Wise Origin Bitcoin Index Fund I. The director of Global Macro said that BTC has a unique advantage over gold.

As reported recently, Speaking to Reuters Global Investment Outlook Summit 2020, the Fidelity Digital Head Tom Jessop, says that Bitcoin still hasn’t attained all of the stores of value elements but BTC investors are still optimistic that one day the benchmark cryptocurrency will attain them. Bitcoin is truly still volatile and by any other standard it would likely not achieve the title as a store of value but it has the potential to become one which is one of the main reasons why so many investors are thinking to invest in it.