Fidelity seeks to launch a Bitcoin ETF

Fidelity Investments has announced plans to launch an exchange-traded fund (ETF) that tracks the price of Bitcoin.

FD Funds Management, a subsidiary of Fidelity, submitted an S-1 dossier to the Securities and Exchange Commission (SEC) on Wednesday outlining its intention to financially support the ETF. Over the past year, the price of Bitcoin has jumped 687% to around $ 52,790.

The ETF, called Wise Origin Bitcoin Trust, will track the cryptocurrency through the Fidelity Bitcoin Index, which takes spot prices from various Bitcoin markets, including popular exchanges.

This is Fidelity’s latest initiative to integrate cryptocurrencies into consumer finance. The fund manager has previously experimented with mining cryptocurrency, allowed clients to donate digital assets to charities, and launched plans to store and trade Bitcoin for professional investors.

However, the ETF has yet to be approved by the SEC, which previously rejected applications for nine Bitcoin ETFs in 2018. The regulator has previously argued that the market is not yet ready for a Bitcoin ETF. But last week, the SEC acknowledged a Bitcoin ETF proposal from VanEck.