FD Funds Management Backed by Fidelity Files for Bitcoin ETF with SEC
Steve Muchoki, 25 March 2021
Fidelity Investments, an American multinational financial services corporation based in Boston, Massachusetts, through its subsidiary FD Funds Management has filed for a Bitcoin ETF with the United States Securities and Exchange Commission. According to Form S-1 filed by Fidelity Investments, the ETF will be called Wise Origin Bitcoin Trust, if the SEC approves it.
Notably, the United States Securities and Exchange Commission has rejected two other applications for a Bitcoin ETF. According to the commission, Bitcoin is a very volatile asset that may put investors’ capital at risk.
However, with already two Bitcoin ETFs approved in the Canadian market, there are high chances the United States will move towards considering a similar move. Furthermore, more institutional investors are showing the will to hold digital assets as a hedge against the deflationary fiat currencies.
Bigger Picture on Proposed Fidelity Bitcoin ETF
Once approved, the Bitcoin ETF fund will track the performance of bitcoin as measured by the Fidelity Bitcoin Index that was created to track the price of the digital currency. “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 Fidelity prospectus reads.
Notably, there are two pending reviews with the SEC on Bitcoin ETF that were filed by different companies. If the Wise Origin Bitcoin Trust is approved by the Securities and Exchange Commission, it will become the first of its kind to launch in the United States.
According to the company, investors can access the fund through a traditional brokerage account without the “potential barriers to entry or risks involved with holding or transferring bitcoin directly.”
Bitcoin ETF has major implications for the Bitcoin market and also the entire crypto industry. Primarily due to the fact that an ETF fund is regulated by the government thus more institutional and retail investors can access it at any time.
