Fidelity Investments on Wednesday unveiled plans to launch a publicly traded fund, which tracks the price of bitcoin, promoting the money manager’s drive to bring cryptocurrencies to key finances.
The ETF, called the Wise Origin Bitcoin Trust, will aim to match an index that takes spot prices from various bitcoin markets, including popular stock exchanges, Fidelity said in a securities depository. Fidelity Digital Assets will serve as the fund’s custodian, storing Wise Origin holdings.
The ETF, which requires the approval of the Securities and Exchange Commission, would mark a major step in the company’s bitcoin ambitions. If approved, the ETF could be available for purchase on large brokerage and wealth management platforms that monitor trillions of dollars in individual investors’ assets.
The SEC has repeatedly rejected applications for bitcoin ETFs, blocking investors from buying in the market through a financial vehicle whose low taxes and tax benefits have helped improve the way equity and bonds are sold. But the industry remains hopeful that some funds will eventually come in.
Fidelity was one of the first major financial firms to embrace cryptocurrencies as an asset class, and its chief executive, Abigail Johnson, has long supported the market’s potential. The money manager’s support was an important milestone for a market that faced Wall Street reluctance due to concerns about risk, regulation and stability. This resistance has disappeared as the prices of bitcoin and other popular digital assets have risen, attracting the interest of investors large and small.