Fidelity Investments is most likely to launch an exchange-traded fund that keeps a track of bitcoin prices. The finance manager is planning to bring cryptocurrencies to mainstream finance.
As reported by the Wall Street Journal, Fidelity requires the final approval from the Securities and Exchange Commission. This development is reported to be as one of the major steps taken by firm towards its bitcoin ambitions
As reported by WSJ, “The ETF, called 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, storing Wise Origin’s holdings.”
Reportedly, the SEC has been rejecting applications for bitcoin ETFs, stopping investors from buying into the market via financial vehicle whose subsidized advantages have assisted in upending the way stock and bond funds are sold.
According to the reports Fidelity is among the first major financial firms to accept cryptocurrencies as an asset class
“The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions,” said Fidelity spokesperson in a statement.
As reported by WSJ, Fidelity is experimenting with mining digital coins and using digital ledgers to execute trades in the last decade. In September, Fidelity began offering a private bitcoin investment fund to selected qualified investors.