Fidelity Investments unveiled plans Wednesday to launch a trading fund that will monitor the price of bitcoin, stepping up the money manager’s effort to bring cryptocurrencies into mainstream finance.
The ETF, known as the Wise Origin Bitcoin Trust, aims to match an index that offers spot prices from various bitcoin markets, including popular exchanges, Fidelity said in securities filing. Fidelity Digital Assets acts as the custodian of the fund, storing Wise Origin holdings.
The ETF, which requires the approval of the Securities and Exchange Commission, would mark a major step forward in the company’s bitcoin secrets. If adopted, the ETF could be available for purchase on the bankruptcy and wealth management platforms that monitor trillions of dollars of individual investor funds.
The SEC has again rejected claims for bitcoin ETFs, preventing investors from buying into the market through a financial vehicle that has low taxes and tax benefits have helped with spending how stock and bond assets are sold. But the industry is still hopeful that some of the money will come through.
Loyalty was among the first major financial firms to adopt cryptocurrencies as an asset class, and its leader, Abigail Johnson, has long boosted market potential. The money manager’s support was an important milestone for a market that met trust from Wall Street over concerns about risk, regulation and stability. That struggle has subsided as the prices of bitcoin and other popular digital assets have gone up, attracting interest from investors large and small.