Fidelity Files With the SEC for Launching a New Bitcoin Index Fund

America’s one of the biggest investment giants - Fidelity Investments - has submitted a new filing to the U.S. Securities and Exchange Commission (SEC) to launch its new Bitcoin Index Fund in the market.

Peter Jubber, the chief strategist at Fidelity Investments’ and the director of digital funds has submitted all the necessary paperwork to the regulator for the fund dubbed as the "Wise Origin Bitcoin Index Fund I, LP”.

The fund basically aims to target institutional and accredited investors with a minimum buy-in requirement of $100,000. A person familiar with the matter told the Bloomberg publication that the fund will be a “passively-managed, bitcoin-only fund available to qualified investors” via family offices and registered investment advisors.

The company wrote: “Fidelity has made a long-term commitment to the future of blockchain technology and to making digitally-native assets, such as Bitcoin, more accessible to investors.”

The Wise Origin Bitcoin Index Fund basically links back to the parent company Fidelity Investments as well as Bitcoin’s brokerage service and other distribution services. Fidelity’s crypto-specific wing - Fidelity Digital Assets - will serves the fund’s custodian.

Not much details about the funds are available at the moment. This is the second-big move by Fidelity in the Bitcoin market after launching its Bitcoin Futures contracts last year in October 2019.

However, before launching this Bitcoin Index Fund, Fidelity has done some proper homework. In June 2020, Fidelity Digital Assets released a report of their survey conducted among institutional players.

While the survey was conducted from November 2019 to early March 2020, the report shows that 80% of the surveyed investors showed interest for the asset class. “In a comprehensive survey of almost 800 institutional investors across the U.S. and Europe, 36% of respondents say they are currently invested in digital assets, and 6 out of 10 believe digital assets have a place in their investment portfolio”.

This year, more and more institutional players have moved to Bitcoin with the growing uncertainty in the global economy. Bitcoin remains on the radar of institutional players as an alternative to the traditional stock market to secure their money.

Fidelity looks to tap the potential opportunity in the Bitcoin market and further expand its massive portfolio of $8.3 trillion customer funds.