Fidelity Investments to launch Bitcoin ETF

In a CNBC article, the news platform stated that Fidelity Investments is preparing to launch its own bitcoin exchange-traded fund as the investment giant works to cement its clout in the market for digital assets and virtual currency. FD Funds Management, a subsidiary of Fidelity, said that it plans to provide financial backing for an exchange-traded fund called the Wise Origin Bitcoin Trust. The firm filed a Form S-1 with the Securities and Exchange Commission, a preliminary registration statement for the fund.   

Fidelity confirmed that it filed a prospectus to sponsor a bitcoin ETF but said it could not offer further comment because of the preliminary nature of the filing. The ETF, if approved by the SEC, will track the performance of bitcoin as measured by the movement of the Fidelity Bitcoin Index, a barometer the investment giant established to track the price of the digital currency.

Whether the SEC approves the plan, however, remains a key question. The regulator has not to date granted any company permission to create a bitcoin ETF, arguing that the market was not ready yet despite a growing number of applications.