Fidelity Investments released plans on Wednesday to launch an exchange-traded fund that tracks the price of bitcoin, promoting the money manager’s effort to bring cryptocurrencies into the financial sector.
The ETF, called the Wise Origin Bitcoin Trust, will aim to match an index that obtains spot prices from several bitcoin markets, including popular exchanges, Fidelity said in a bond filing. Fidelity Digital Assets will serve as custodian of the fund, storing Wise Origin’s holdings.
The ETF, which requires approval from the Securities and Exchange Commission, would be a big step forward in the company’s bitcoin ambitions. If approved, the ETF may be available for purchase on the major brokerage and wealth management platforms that oversee trillions of dollars in assets from individual investors.
The SEC has repeatedly rejected bitcoin ETF orders, preventing investors from buying on the market through a financial vehicle whose low rates and tax advantages have helped to change the way equity and bond funds are sold. But the industry remains hopeful that some funds will eventually arrive.
Fidelity was one of the first major financial companies to embrace cryptocurrencies as an asset class, and its chief executive, Abigail Johnson, has long championed the market’s potential. The financial manager’s support was an important milestone for a market that faced Wall Street’s reluctance towards risks, regulations and stability. That resistance has eased as prices for bitcoin and other popular digital assets have risen, attracting the interest of both large and small investors.