Fidelity Investments, one of the world’s biggest asset managers, is to join the growing list of businesses providing investors access to Bitcoin via a Canadian exchange-traded fund (ETF), despite US authorities refused to approve the funds.
As per a Nov. 22 filing, the Fidelity Advantage Bitcoin ETF would invest in Bitcoin directly or via derivative instruments, and users will be able to buy the fund using Canadian or US dollars. The exchange-traded fund, trading under the ticker FBTC on the Toronto Stock Exchange, may debut as early as Thursday.
The registration comes after Fidelity executives from Boston met with the Securities and Exchange Commission to lobby for establishing a comparable ETF in the United States. In contrast to most applications, like Fidelity’s, SEC Chairman Gary Gensler has indicated that any such funds would be required to follow the toughest mutual fund standards. In March, Fidelity filed for a Bitcoin ETF in the United States.
Spot Bitcoin ETFs have yet to be authorized in the United States, despite numerous Bitcoin futures ETFs having just been approved. On the other hand, Canadian authorities have welcomed Bitcoin ETFs, which have drawn billions of dollars in investment.
On Twitter, Bloomberg Senior ETF Analyst Eric Balchunas stated, “This should be embarrassing for the SEC that one of America’s biggest, most storied names in investing is forced to go up North to serve its clients.”
Despite remaining issues about its value and price manipulation, Bitcoin has proved to be one of the best performing investments of the decade after breaking into the general awareness in 2017. Over the last five years, the biggest digital currency by market capitalization has recovered roughly 6,000 percent.
While Fidelity will serve as the fund’s custodian, State Street Trust Co, Canada will serve as the registrar and transfer agent.