Fidelity launches physical bitcoin ETP in Europe

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Fidelity International has launched an exchange-traded physical product of bitcoins in response to growing demand for digital assets among European investors.

The product launch comes three months after Invesco brought its own bitcoin ETP to market amid a growing desire to major asset managers to enter the cryptocurrency arena.

Fidelity’s Physical Bitcoin ETP, which will be available to professional and institutional investors in Europe, is domiciled in Germany and listed on Xetra in Frankfurt. The product will begin trading on the Zurich Six in the coming weeks.

Fidelity Digital Assets, the US-based digital assets arm of Fidelity Investments, will act as the ETP’s custodian.

Nick King, head of exchange-traded funds at the $813 billion asset manager, said the launch was a “significant evolution” of his company’s ETP offering and the first step in its “product capability.” digital assets”.

This article was previously posted by Ignite Europea security held by the FT group.

The ETP has an ongoing charge figure of 0.75% and launched with approximately $6 million in assets.

Christian Staub, Managing Director for Europe at Fidelity, said “ETP’s underlying distributed ledger technology has the potential to revolutionize the financial system over time and disrupt many parts of the financial world with profound implications for investors”.

A recent survey by Fidelity Digital Assets showed that 70% of institutional investors plan to buy or invest in digital assets “in the near future”.

Over 90% of respondents who expressed an interest in digital assets expected to have an allocation to the asset class within the next five years.

The launch comes after Fidelity Digital Assets has been granted official registration status with the UK regulator, the Financial Conduct Authority, for its digital asset custody and trade execution business at the end of last year.

The digital asset arm of Fidelity Investments was previously listed as a temporary member on the FCA’s register, but has now moved to the watchdog’s permanent register.

Fidelity Digital Assets initially launched its digital asset services for institutional investors in the United States, but established a European outpost in London at the end of 2019.

In early December, Fidelity Investments launched a physical bitcoin ETF domiciled in Canada, which has $30 million in assets.

*Ignites Europe is an information service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at igniteseurope.com.

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Mary I. Bruner