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The spot investment-focused Fidelity Advantage Bitcoin ETF (FBTC) has been greenlighted to launch by Canadian financial regulators in a huge first for the North American continent.
While the SEC have so far allowed the formation of Futures ETFs for Bitcoin (BTC) and other assets such as Ethereum (ETH), there has been no approval of a spot ETF for cryptocurrencies in America to date.
Fidelity’s big stride into the space will allow investors based in North America the one of the first significant managed spot investment opportunity (if they’re happy with a 40 basis point management fee).
Purpose Investments launched the continent’s first fund, the Purpose Bitcoin ETF (BTCC) all the way back in February, and it was a resounding success that saw $1 billion (CAD) in assets under management within a month of launch.
Bitcoin (BTC) spot ETF strategy
The prospectus leaves little to the imagination regarding investment strategy, with the primary goal of strategic spot accumulation of BTC, risked managed by carefully deployed incidental derivative trades aims at hedging volatility.
A spokesman for the Fidelity Centre for Applied Technology was quick to explain the rationale behind the BTC spot ETF.
“We believe that cryptocurrency is a valid asset class that we would like to provide as an investment option for retail investors in Canada,” commented the spokesperson.
“As to why now? We wanted to offer a front-to-back Fidelity solution with solid regulatory grounding.”
Purpose Investments are keen to secure their lead as Fidelity enters the space, and this could be part of the explanation for the recent sequential launch of the Purpose Ether ETF (ETHH), Bitcoin Yield ETF, Ether Yield ETF, and the Crypto Opportunities ETF – all of which further cement Purpose’s market share.