Fidelity Investments is preparing to launch its own bitcoin fund as the investment giant works to cement its clout in the market for digital assets and virtual currency.
FD Funds Management, a subsidiary of Fidelity, said on Wednesday that it plans to provide financial backing for an exchange-traded fund called the Wise Origin Bitcoin Trust.
The firm filed a Form S-1 with the Securities and Exchange Commission, a preliminary registration statement for the fund.
Fidelity confirmed that it filed a prospectus to sponsor a bitcoin ETF but said it could not offer further comment because of the preliminary nature of the filing.
The ETF will track the performance of bitcoin as measured by the performance of the Fidelity Bitcoin Index, a barometer the investment giant established to track the prices of the digital currency.
Although the Trust does not intend to sell bitcoin, it will use bitcoin to pay certain expenses, which under current IRS guidance will be treated as a sale of such bitcoin.
This is a developing story. Stay tuned for updates.