Fidelity Looks To Launch ETF That Tracks The Price Of Bitcoin
Fidelity moved to register a Bitcoin (BTC) exchange-traded fund, according to a preliminary filing made with the U.S. Securities and Exchange Commission.
What Happened: Fidelity said its index will track “eligible” BTC spot markets and will reflect the performance of the apex cryptocurrency in U.S. dollars.
According to Fidelity, current spot markets include Coinbase, Bitstamp, Gemini, itBit, and Kraken.
See also: How to Buy Bitcoin (BTC)
“The Trust provides investors with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from a bitcoin spot market, or mining it,” the financial services giant said in the filing.
Why It Matters: BTC frothed to an all-time high this month, touching $61,683.86 on Mar.13. At press time, the cryptocurrency traded 3.17% lower at $52,689.83.
The recent calming in prices has not diminished the interest of institutional investors in Bitcoin.
SkyBridge Capital founder Anthony Scaramucci has also jumped in the fray to launch a Bitcoin fund aimed at affluent investors.
Meanwhile, Digital Currency Group already has a number of cryptocurrency funds in place. The Grayscale Bitcoin Trust (OTC:GBTC) closed 3.74% lower at $45 on Wednesday.
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