FBTC ETF Alert: 7 Things to Know as Fidelity’s Bitcoin ETF Starts Trading Today


  • New spot Bitcoin (BTC) exchange-traded funds (ETFs) have been approved by the U.S. Securities and Exchange Commission (SEC) to start trading today.
  • At the top of the list of these new ETFs is the Fidelity Wise Origin Bitcoin Fund (FBTC).
  • Experts seem to have a positive outlook as the new Bitcoin fund begins its journey.
Fidelity Bitcoin ETF - FBTC ETF Alert: 7 Things to Know as Fidelity’s Bitcoin ETF Starts Trading Today

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Today, all eyes are on news that has kept Bitcoin (BTC-USD) prices elevated recently. Indeed, regulators have finally approved long-awaited spot Bitcoin exchange-traded funds (ETFs) after weeks of deliberation. The list of funds that launch today includes the ARK 21Shares Bitcoin ETF (NYSEMKT:ARKB), Invesco Galaxy Bitcoin ETF (NYSEMKT:BTCO) and the Vaneck Bitcoin Trust ETF (NYSEMKT:HODL), among others. All of these new funds were populated on Fidelity’s brokerage platform as early as Jan. 10, according to an early tweet from one crypto analyst. But Fidelity isn’t just a platform where investors can access these funds. Indeed, the firm has launched its own BTC ETF, the Fidelity Wise Origin Bitcoin Fund (NYSEMKT:FBTC).

What is a spot Bitcoin ETF? The financial services giant describes these funds as “the first exchange-traded products that track the price of bitcoin by holding actual bitcoin (i.e., “spot”) as their underlying asset.” Fidelity adds that “supporters believe they can make investing in bitcoin more accessible to the general public.”

With that in mind, let’s take a closer look at the Fidelity Wise Origin Bitcoin Fund and what its debut could mean for investors as the rise of Bitcoin ETFs shakes up crypto markets.

What to Know About the Fidelity Bitcoin ETF

  1. Fidelity initially filed for a spot Bitcoin ETF in June 2023 after fellow institutional investment firm BlackRock (NYSE:BLK) announced plans to launch its own BTC ETF.
  2. The official exchange of FBTC is the Cboe (Chicago Board Options Exchange) BZX.
  3. As of today, Fidelity’s fee for the fund is 25 basis points, a decrease from its previously stated fee of 39 points.
  4. First, though, it will be waving the fee until July 31, 2024, an expense ratio of 0.25%. Fellow new spot Bitcoin ETF ARK 21Shares Bitcoin ETF has adopted a similar policy.
  5. In a statement about the recent approval of BTC ETFs, Fidelity Head of Digital Asset Management Cynthia Lo Bessette said that “Fidelity has engaged in constructive dialogue with the SEC for years, and the affirmation of this authorization signals positive momentum for the industry.” Bessette also noted that this means “increased choice for investors who want to engage with digital assets.”
  6. ETF expert David Dierking has a “very good” outlook for the Fidelity Bitcoin ETF. Dierking expects FBTC to be one of the top spot Bitcoin ETFs even “after the initial mania cools.”
  7. Fidelity Digital Asset Services is the custodian of the fund’s underlying Bitcoin assets. Fidelity Digital Asset Services is a “limited liability trust company chartered by the New York Department of Financial Service.”

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

Article printed from InvestorPlace Media, https://investorplace.com/2024/01/fbtc-etf-alert-7-things-to-know-as-fidelitys-bitcoin-etf-starts-trading-today/.

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