Fidelity Investments unveiled on Wednesday its plans to launch a stock exchange-traded fund that tracks the price of bitcoin, prompting the money manager’s push to bring cryptocurrencies to major finances.
The ETF, called the Wise Origin Bitcoin Trust, will aim to match an index that obtains spot prices from various bitcoin markets, including popular stock exchanges, Fidelity said in a stock presentation. Fidelity Digital Assets will serve as the custody of the fund, storing Wise Origin holdings.
The ETF, which requires the approval of the Securities and Exchange Commission, would be a big step forward in the firm’s bitcoin ambitions. If approved, the ETF could be available for purchase on large brokerage and asset management platforms that monitor billions of dollars of individual investors ’assets.
The SEC has repeatedly rejected bitcoin ETF applications, preventing investors from buying in the market through a financial vehicle low rates and tax advantages have helped improve the way equity and bond funds are sold . But the industry still hopes some funds will end up breaking down.
Fidelity was one of the first large financial companies to adopt cryptocurrencies as an asset class, and its CEO, Abigail Johnson, has long defended the market’s potential. Money manager support was an important milestone for a market that encountered Wall Street reluctance over concerns about risks, regulations and stability. This resistance has faded as the prices of bitcoin and other popular digital assets have risen, attracting the interest of investors large and small.