- Fidelity International launched a Bitcoin ETP on the London Stock Exchange.
- The ETP is 100% physically backed by Bitcoin, ensuring security for investors.
- Regulatory approval by FCA has enabled the listing of crypto asset-backed ETNs.
Fidelity International has launched a new Bitcoin Exchange Traded Product (ETP) on the London Stock Exchange. This product, called the Fidelity Physical Bitcoin ETP, aims to track the price movement of Bitcoin, the world's leading cryptocurrency. The ETP is 100% physically backed by Bitcoin, ensuring that each unit of the ETP is supported by an equivalent amount of Bitcoin.
Regulatory Approval and Market Impact
The launch follows the Financial Conduct Authority's (FCA) decision to allow exchanges to create a market segment for crypto asset-backed Exchange Traded Notes (ETNs). This regulatory change has paved the way for products like Fidelity's Bitcoin ETP to be listed on the London Stock Exchange.
Meanwhile, the ETP is available only to professional investors. This financial product provides them with a secure and regulated way to invest in Bitcoin.
Stefan Kuhn, Fidelity's Head of ETF & Index Distribution in Europe, stated that the approval of the first spot Bitcoin ETFs in the US has increased global interest in cryptocurrencies. He emphasized that the FCA's decision reflects the growing acceptance and demand for digital assets offered through regulated exchanges.
Competitive Pricing and Accessibility
Fidelity's Bitcoin ETP is competitively priced with an Ongoing Charges Figure of 0.35%. This makes it an attractive option for professional investors looking to gain exposure to Bitcoin in a cost-effective manner. The ETP was initially launched in February 2022 on the Deutsche Börse Xetra and the SIX Swiss Exchange. Now, with its listing on the London Stock Exchange, it becomes more accessible to UK investors.
The Fidelity Physical Bitcoin ETP represents a significant step in making cryptocurrency investments more mainstream. By offering a familiar, simple, and secure way to invest in Bitcoin, Fidelity is helping to bridge the gap between traditional finance and the emerging world of digital assets.
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