Fidelity Investments has reportedly filed paperwork with the Securities and Exchange Commission (SEC) for a Bitcoin-related fund. The fund, called Wise Origin Bitcoin Index Fund I, LP, will likely target institutional investors.
The filing explains that the minimum investment is $100,000—a trifle for most institutions, but effective to price out individuals. The fund’s name is currently pending trademark approval by the U.S. Trademark Office.
The news was a bit unexpected, considering that the ‘Wise Origin’ fund name had been announced earlier in the year. That announcement did not include any information specifically about Bitcoin.
SponsoredHowever, the fund itself is not all that surprising, given Fidelity’s own research into the digital asset world. The company had previously published a statement indicating that a majority of their institutional investors were attracted to or invested in the digital space.
That report, filed in June, explained that, while a smaller percentage owned digital currencies, a large percentage were interested:
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.
The company has had a long runway in entering the cryptocurrency space. Two years ago Fidelity first announced a cryptocurrency custodial program.
The Digital Assets branch of the company also provided trading services as recently as October of last year. With the publication of its research into digital asset approval, Fidelity was bound to release a Bitcoin-related fund.
Further, the recent successes of other cryptocurrency funds like Grayscale could have influenced Fidelity’s willingness to step into the market. The SEC’s approval is still pending.
Midnight