Fidelity Investments, a $ 4.9 trillion asset manager, has filed with the Securities and Exchange Commission (SEC) documentation for the launch of the new bitcoin (BTC) exchange traded fund.
The Woc Bitocin Trust was filed with the SEC on Wednesday, according to on the S-1 registration declaration form that appeared on the regulatory body’s website. The aim of the ETF is to monitor the daily performance of the digital currency using the Fidelity Bitcoin Index PR, an index that is derived from several price channels.
From the prospectus:
“The Trust Fund provides direct exposure to bitcoins and the Trust Fund’s shares are valued on a daily basis using the same methodology used to calculate the index.”
The fund is incorporated into Delaware and Fidelity Digital Asset Services is listed as the trustee.
Fidelity says investors have access to the fund through a traditional intermediary account without “potential barriers to entry or risks associated with the direct holding or transfer of bitcoins.” Like other proposed bitcoin ETFs, the Fidelity Trust aims to provide more institutional pathways to cryptocurrencies.
Speculation about the US bitcoin ETF has been on the rise since the bull market in 2017. Lawmakers at the SEC have so far canceled any proposal to securitize bitcoins in the ETF concerns about extreme volatility and price manipulation. Proponents of the flagship cryptocurrency believe that now that bitcoin has matured as an asset class, the tide could change.
So far north of the border, Canadian regulators have it approved two bitcoin ETFs. The purpose of the Bitcoin ETF, which was launched in mid-February, generated $ 100 million in the first few hours of trading.
Fidelity was among the first major institutions to adopt cryptocurrencies. The company started mining bitcoins and ethereum (ETH) in 2014, the same year, Abigail Johnson became the company’s President and CEO.