Fidelity Investments has launched a physically backed Bitcoin exchange-traded product (ETP) in response to what it describes as growing demand for digital assets among European investors. The ETP is listed on Xetra Frankfurt and is scheduled to begin trading on SIX Swiss Exchange in Zurich in the coming weeks.
This Fidelity ETP follows Invesco’s Bitcoin ETP, which debuted three months earlier amid rising interest from asset managers in cryptocurrency investments.
The product launch comes after Fidelity Digital Assets received formal registration from the UK Financial Conduct Authority (FCA) for its digital trading and custody business at the end of 2021.
Previously listed as a temporary member on the FCA register, Fidelity Digital Assets has now been moved to the FCA’s permanent register.
In December 2021, Fidelity Investments also launched a Canada-based physically backed Bitcoin ETF, which currently holds roughly $30 million in assets.
Fidelity Physical Bitcoin ETP
The Fidelity Physical Bitcoin ETP will be available to institutional and professional investors across Europe and must be domiciled in Germany. Fidelity Digital Assets, the U.S.-based digital asset arm of Fidelity Investments, will act as the custodian for the ETP.
Nick King, Head of Fidelity Investments, said the launch represents a significant step in the company’s ETP offering and marks its first product for digital assets.
The ETP launched with approximately $6 million in assets under management and carries an ongoing charge of 0.75%.
Christian Staub, Managing Director for Europe at Fidelity, commented:
“Distributed ledger technology has the potential to transform the financial system over time and disrupt many aspects of the financial world, with profound implications for investors.”
Fidelity Digital Assets recently conducted a survey showing that 70% of institutional investors plan to invest in digital assets in the near term. More than 90% of respondents said they expect to have an allocation to digital assets within the next five years.