Asset Management Giant Fidelity Files For a Bitcoin ETF

A new filing with the U.S. Securities and Exchange Commission indicates that asset management giant Fidelity is seeking to create a bitcoin exchange-traded fund (ETF). The Block reports: The Wise Origin Bitcoin ETF is the latest entrant in a growing race to launch a bitcoin exchange-traded product in the United States. According to the filing, a firm called FD Funds Management LLC is the sponsor of the fund, with Fidelity Service Company, Inc. serving as administrator. Per the document, FD Funds Management LLC shares the same Boston, MA address as Fidelity's headquarters. Fidelity Digital Assets, the asset manager's crypto-focused arm, will serve as custodian. The ETF, if approved, will also employ Fidelity's in-house bitcoin price index, per the filing.

"The Trust's investment objective is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR (the "Index"), adjusted for the Trust's expenses and other liabilities," the filing notes, explaining elsewhere: "The Trust provides direct exposure to bitcoin, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from a bitcoin spot market, or mining it."

They should create a bearish ETF as well.

[ayesnymous]

Many financial companies will create a bull ETF that tracks an index, as well as a bear ETF that tracks the index inversely - meaning that the ETF increases in value if the underlying index goes down.

Maybe throw in some 2X and 3X leveraged ETFs as well, although those are only suitable for advanced traders.

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[plank_man]

Who else is going to be buying calls with 20x margin on bitcoin 3x leveraged ETFs?

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[DarkOx]

umm unless he is buying an inverse ETF; purchasing calls will be a long position.

A long call means I pay you today for the right buy some number (usually 100) shares of something on or before the date of expiration at a specified price.

So I could give you $100 bucks now for a $100 call on Fake Corp Apr16. Lets say fake corp currently trades at $90. Your bet is essentially that it will be trading at less than $100 between now and then. My bet is it will be worth at least $101.

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[leathered]

Why play in a rigged casino? Bitcoin markets are manipulated by Tether printing and wash trading, shorting BTC is for idiots.

the final invention

[Anonymouse Cowtard]

before the demise of humans will be a new way to lose money and you will read about it here.

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[Rei]

Except Fidelity wins either way in this case, collecting the fees from traders while remaining neutral on the underlying asset.

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[Registered Coward v2]

Except Fidelity wins either way in this case, collecting the fees from traders while remaining neutral on the underlying asset.

Yes. The house always wins...

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[cusco]

Think Bitcoin is volatile now? The big boys are just starting to play in this sandbox, these are companies that destroy the economy of entire countries on a whim.

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[cusco]

And tomorrow someone stumbles on Shatoki Nakamoto's key and dumps his entire holdings on the market and your bottomless pit of electrical wastage goes in toilet. Sounds like a great system to me!

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[Errol backfiring]

For the same reason you can't photocopy bitcoins: you have to draw new ones yourself. Making them look authentic is the hard part.

Actually, I kinda like this idea

[leonbev]

This would be a nice way to invest some of my Roth IRA in cryptocurrency without having to worry about my private keys getting stolen or my Bitcoin exchange account getting hacked.

I'd also imagine that an organization as big as Fidelity can afford cyber insurance to cover themselves if someone gets a hold of their crypto stash.