A Fidelity Investments location in New York.
Scott Mlyn | CNBC
Fidelity Investments is preparing to launch its own bitcoin fund while the investment giant works to cement its influence in the digital and virtual currency market.
FD Funds Management, a subsidiary of Fidelity, said Wednesday it intends to provide financial support for a publicly traded fund called the Wise Origin Bitcoin Trust.
The company submitted an S-1 form to the Securities and Exchange Commission, a preliminary statement of registration of the fund.
Fidelity has confirmed that it has filed a prospectus to sponsor a bitcoin ETF, but said it cannot provide further comments due to the preliminary nature of the deposit.
The ETF will track bitcoin performance, as measured by the movement of the Fidelity Bitcoin index, a barometer set by the investment giant to track the price of digital currency.
Although the Trust does not intend to sell bitcoin, it will use the cryptocurrency to pay for certain expenses, which, under the current guidance of the IRS, will be treated as a sale of such a digital currency.
Certainly, Fidelity’s offer to support a bitcoin ETF is far from its first adventure in the expanding world of digital currencies.
He founded Fidelity Digital Assets in 2018, a subsidiary that has since carried out its operations of custody and execution of cryptocurrencies. Early approval was enough to attract customers from institutional investors, such as hedge funds and family offices, according to its senior executive.
Bitcoin, along with thousands of other digital currencies, has seen a lot of shopping in the last 12 months, as a growing number of investment managers and banks feel comfortable considering it both as a potential investment opportunity and as a a means of exchange.
Although the world’s largest digital asset has struggled in recent weeks, its current price, around $ 52,430, is well above where it traded below $ 10,000 a year ago, according to Coin Metrics.