Fidelity Launches First Investment Product that Tracks Bitcoin in Europe
The decision to list an exchange-traded fund (ETF) comes after a Fidelity Digital Assets survey indicated that 70% of institutional investors expect to buy or invest in digital assets in the future.
Fidelity International has launched its first investment product that tracks bitcoin in Europe, as the British investment manager taps into rising demand for exposure to digital currencies.
The Fidelity Physical Bitcoin ETP, available to the asset [1] manager's professional and institutional clients in Europe, began trading on the Deutsche Börse Xetra on march 1.
Bitcoin Price in India as of February 11 at 10:23am IST was Rs. 32.02 lakh. [2]
Figure 1. Fidelity Launches First Investment Product that Tracks Bitcoin in Europe
Figure 1 shows the physical Bitcoin exchange-traded product (ETP) will also debut on the SIX Swiss Exchange in the coming weeks, Fidelity said.
Nick King, head of ETFs at the company, said the ETP launch "is the first step in our digital assets product capability". [2]
The decision to list an ETF comes after a Fidelity Digital Assets survey indicated that 70% of institutional investors expect to buy or invest in digital assets in the future.
More than 90% of those interested in digital assets expect to have an allocation in their institution's or clients' portfolios within the next five years, the survey showed.
In the United States, a spot bitcoin ETF is yet to be approved, and several asset managers have seen their proposals rejected. A proposal to list Fidelity's Wise Origin Bitcoin Trust was vetoed last month.
The price of bitcoin, the world's largest cryptocurrency, is trading at $40,429 after losing nearly half its value in January from its all-time peak of $69,000. [3]
According to data from Jersey-based digital assets manager CoinShares, inflows for crypto investment products in Europe exceeded $80 million in the first week of February 2021.In contrast, the US market remains stalled in terms of spot bitcoin ETFs. In January, the Securities and Exchanges Commission turned down an application from Fidelity for its Wise Origin Bitcoin Trust adding to a growing list of rejected applications. [4]
References:
- https://www.ndtv.com/business/fidelity-launches-first-bitcoin-exchange-traded-product-in-europe-2776347
- https://gadgets360.com/cryptocurrency/news/bitcoin-etf-fidelity-launch-europe-crypto-exchange-traded-fund-price-2777001
- https://money.usnews.com/investing/news/articles/2022-02-18/fidelity-launches-its-first-bitcoin-exchange-traded-product-in-europe
- https://www.fundstech.com/news/fidelity-launches-bitcoin-etp-in-europe
Cite this article:
Thanusri swetha J (2022), Fidelity Launches First Investment Product that Tracks Bitcoin in Europe , pp. 140