Fidelity Investments is seeking regulatory approval to launch an exchange traded fund (ETF) that tracks the price of Bitcoin.
Fidelity’s ETF, called the “Wise Origin Bitcoin Trust,” will aim to match an index that tracks spot prices from various Bitcoin markets, the company said in a securities filing. Fidelity Digital Assets will serve as the fund’s custodian, storing the Wise Origin ETF’s holdings.
The ETF, which requires approval from the Securities and Exchange Commission (SEC), would mark a major step forward in Fidelity’s Bitcoin ambitions. However, the SEC has repeatedly rejected applications for Bitcoin ETFs, blocking investors from buying into the market.
Fidelity was among the first major financial firms to embrace cryptocurrencies as an asset class, and its Chief Executive Officer, Abigail Johnson, has long championed the market’s potential.
The money manager’s support was an important milestone for a market that met reluctance from Wall Street over concerns about risk and stability. That resistance has faded as the prices of Bitcoin and other popular digital assets have surged, drawing interest from investors large and small.
Fidelity began experimenting with mining digital coins and using digital ledgers to execute trades in the last decade. In 2018, Fidelity launched plans to store and trade Bitcoin for hedge funds and other professional investors, and currently serves as custodian to more than 100 institutions.
In September 2020, Fidelity started offering a private Bitcoin investment fund to accredited investors.
