Fidelity Investments on Wednesday unveiled plans to launch an exchange-traded fund that tracks bitcoin’s price, fueling pressure from the money manager to bring cryptocurrencies into mainstream finance.
The ETF, dubbed Wise Origin Bitcoin Trust, will aim to match an index that takes spot prices from various bitcoin markets, including popular exchanges, Fidelity said in a securities filing. Fidelity Digital Assets will serve as the fund’s custodian and store Wise Origin’s holdings.
The ETF, which requires Securities and Exchange Commission approval, would represent a significant step forward in the company’s bitcoin ambitions. If approved, the ETF could be available for purchase on the major brokerage and wealth management platforms that oversee trillions of dollars in individual investors’ assets.
The SEC has repeatedly rejected applications for bitcoin ETFs, preventing investors from buying in the market through a financial vehicle whose low cost and tax benefits have helped improve the way stock and bond funds are sold. But the industry remains hopeful that money will eventually break through.
Fidelity was one of the first major financial companies to embrace cryptocurrencies as an asset class, and its CEO, Abigail Johnson, has long defended the market’s potential. The money manager’s support was a significant milestone for a market that met Wall Street’s reluctance to concern over risk, regulation and stability. That resistance has faded as the prices of bitcoin and other popular digital assets have soared, drawing the interest of investors large and small.