Investors can gain exposure to crypto investments through Fidelity investment, which is the primary objective of the crypto asset management firm.
Details Of The New Launch
The London-based firm is launching this ETP in response to the yearnings of its Europe-based customers. The product, known as Fidelity physical BTC ETP, is accessible to all individual and institutional investors. However, it is listed on the Xetra exchange and is primarily domiciled in Germany. The product will also be listed on Zurich’s SIX exchange. Fidelity digital assets will provide custody for this ETP. It will charge 0.75% for the ETP with an asset of $6m.
Brown Brothers Harriman will provide administrative and transfer agency services for this offer, while Eurex clearing will provide clearing services. Fidelity digital asset is a branch of Fidelity investment group with headquarters in the US.
The firm’s chief executive for the European market claims that blockchain technology is disrupting the current financial system and affecting how investors make their investment decisions. The asset management firm already has a Canada-domiciled physical BTC ETP with assets under management of $30m.
Rising Institutional Interest In Crypto
A recent survey by Fidelity digital assets revealed a rising institutional interest in cryptos. More than 75% of the polled audience expect that they will invest in digital assets in the “nearest future.” Nearly 95% of the surveyed institutional investors expect digital assets in their investment portfolio within the next six years.
One of Fidelity international’s top-level execs, Christian Staub, opined that “one of our primary responsibilities as an asset investment firm is to offer crypto exposure for individual and institutional investors.” Fidelity digital assets launched its UK subsidiary last year following approval of its custody and trade execution business by the UK’s financial watchdog, the FCA.
The firm’s European operations have been in existence for three years. The chief executive for ETFs in the company, Nick King, said that “this ETP launch is a crucial step in helping our top customers in Germany and Switzerland gain exposure to the crypto market.”
King claims that the company’s offering is the cheapest among similar offerings in Europe. He further stated that Fidelity international would continue to launch ETPs to satisfy the yearnings of its customers. “For instance, trading fractional stock and ETFs on our mobile apps was also a result of requests by our customers,” he concluded.
The US SEC Is Yet To Approve Any Spot ETF
Fidelity’s ETP product launch follows Invesco’s BTC ETP, which was launched in last year’s last quarter. Also, SIX digital exchange received two operating licenses from Switzerland’s financial regulator, FINMA. One of the licenses authorizes the exchange to act like a stock exchange, while the other license allows it to perform blockchain-based securities’ depository functions.
There is also a stock exchange in Paris where trading on derivatives, securities, and commodities is allowed. However, the US SEC is yet to approve any spot ETF. Even though several firms have submitted their ETP-based proposals, the top financial regulator has rejected all of them. It has only authorized BTC futures products.