 on the London Stock Exchange. The ETP aims to track Bitcoin's price movements, with Fidelity Digital Assets ensuring security and reliability.){kind=link}
Fidelity International has launched its Fidelity Physical Bitcoin Exchange Traded Product (ETP) on the London Stock Exchange, marking the firm’s entry into the UK digital assets market.
The ETP, designed to track the price movement of Bitcoin, is physically backed and comes with a 0.35% Ongoing Charges Figure.
The launch comes on the heels of the Financial Conduct Authority’s (FCA) decision to permit exchanges to create a market segment specifically for crypto asset-backed Exchange Traded Notes (ETNs), which, like the ETP, are available exclusively to professional investors.
ETP to Mirror Price Movements of Bitcoin
The new ETP is physically backed, guaranteeing that each share is backed by real Bitcoin, and it is intended to mimic the price fluctuations of the cryptocurrency. An ongoing fee of 0.35% will be imposed on investors for this product. As the custodian, Fidelity Digital Assets (FDA) will be responsible for upholding the highest security and dependability standards for the assets that are being managed.
Although the product has been offered on other European exchanges, such as the Deutsche Börse Xetra and the SIX Swiss Exchange, since February 2022, this is Fidelity’s first entry into the UK market with a Bitcoin ETP. Fidelity hopes to meet the growing demand for cryptocurrency investments among institutional investors in the UK by introducing the product.
Fidelity is not the only one in the Industry
Fidelity’s action comes after other significant asset managers have taken comparable ones. Another major participant in the digital asset market, WisdomTree, was permitted by the FCA earlier this year to list its WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETPs on the London Stock Exchange. This certification may open the door for more institutional adoption of cryptocurrencies and be considered a turning point for the UK’s digital asset sector.
Alexis Marinof, Head of Europe at WisdomTree, commented on the FCA’s approval, stating, “The FCA approval of our crypto ETPs’ prospectus is a significant step forward for the industry and UK-based professional investors seeking exposure to the asset class. While UK-based professional investors have been able to allocate to crypto ETPs via overseas exchanges, they will soon have a more convenient access point.”
The introduction of Fidelity’s Bitcoin ETP fits into a larger pattern where traditional financial institutions are using digital assets as a means of enhancing their integration with the world financial system.
The growth of regulated cryptocurrency investment products, such as ETPs, indicates a developing market in which institutional investors can obtain digital assets via dependable and well-known financial instruments.