- Provides institutional investors secure access to Bitcoin
- Tracks price movement of the leading cryptocurrency
- Charges 0.35% in ongoing fees
Fidelity International has become the latest prominent asset manager to introduce a digital asset product in the United Kingdom. The firm recently listed the Fidelity Physical Bitcoin Exchange Traded Product (ETP) on the London Stock Exchange, offering investors a regulated and familiar way to gain exposure to the world’s largest cryptocurrency.
The newly launched ETP aims to closely track the price movements of Bitcoin, and it is physically backed, meaning the underlying asset is held in custody. This structure provides investors with direct exposure to the cryptocurrency’s performance. The ETP carries an Ongoing Charges Figure of 0.35%, which is a competitive fee for such a product.
The launch of Fidelity’s Bitcoin ETP comes after the Financial Conduct Authority (FCA) authorized the creation of a dedicated market segment for crypto asset-backed Exchange Traded Notes (ETNs) on UK exchanges. However, these products are currently available only to professional and institutional investors, not retail traders.
With this regulatory development, several asset managers have introduced digital asset ETPs on the London Stock Exchange, including WisdomTree and Global X. Fidelity’s offering represents a significant addition to this growing market, given the firm’s reputation and extensive experience in managing investment products.
Stefan Kuhn, Fidelity’s head of ETF & index distribution for Europe, highlighted the increasing acceptance and demand for digital assets among investors globally. He noted that the FCA’s decision to authorize crypto asset-backed ETNs reflects this trend and provides a secure and regulated environment for professional investors to access this asset class.
The Fidelity Physical Bitcoin ETP was initially launched in February 2022 on the Deutsche Börse Xetra and the SIX Swiss Exchange, and its listing on the London Stock Exchange expands its accessibility to UK-based institutional investors.