Fidelity Investments Canada ULC, one of Canada's leading investment management firms, announced the launch of Fidelity Advantage Bitcoin ETF™ and Fidelity Advantage Bitcoin ETF Fund™ for investors looking for exposure to bitcoin, the largest cryptocurrency in the world. These strategies leverage Fidelity Clearing Canada ULC (Fidelity Clearing), Canada's first Investment Industry Regulatory Organization of Canada (IIROC) entity to offer a secure digital asset trading and custody solution for institutional investors including investment funds.
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Fidelity Advantage Bitcoin ETF™ begins trading on the Toronto Stock Exchange today with ticker symbols: FBTC (Canadians Dollar version) and FBTC.U (U.S. Dollar version).
"As bitcoin and digital currencies are gaining recognition among investors, we are pleased to offer a professionally managed bitcoin ETF and ETF Fund supported by the strength and scale of Fidelity," said Kelly Creelman, Senior Vice President, Products and Marketing, Fidelity Investments Canada ULC.
Fidelity has been researching and investing in bitcoin and blockchain - the underlying technology - for many years and has a strong understanding of the technology, its benefits and risks and the investment potential for investors.
Building on this competitive advantage, Fidelity Clearing became Canada's first Investment Industry Regulatory Organization of Canada (IIROC) regulated dealer to offer a trading and custody solution for institutional investors. This solution offers vaulted cold storage, physical, cyber and operational controls as well as multilevel innovative safeguards.
In harnessing this solution, Fidelity Advantage Bitcoin ETF™ and Fidelity Advantage Bitcoin ETF Fund™ will offer investors confidence that the ETF's bitcoin is stored using Fidelity's institutional-grade security.
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How does it work and why invest in Fidelity Advantage Bitcoin ETF™ and Fidelity Advantage Bitcoin ETF Fund™?
There are several reasons why investors may wish to invest in these funds instead of purchasing and storing cryptocurrencies directly.
- How It Works - The investment objective of Fidelity Advantage Bitcoin ETF™ is to invest in bitcoin. Fidelity Advantage Bitcoin ETF Fund™ invests in the ETF. When an investor purchases the ETF, they will own units of the ETF, which in turn owns physical bitcoin. The price of units will go up and down directly in relation to the price of bitcoin.
- Fidelity Security Features - Fidelity Advantage Bitcoin ETF™ accesses bitcoin through Fidelity Clearing, which in turn leverages Fidelity's selected trading platforms. The physical bitcoin that the ETF owns is stored using an institutional-grade custodial model, offering the ETF access to the trading and custody of digital assets in a secure way.
- Tax Efficiency and Liquidity - Like all Fidelity ETFs and corresponding mutual fund versions, the new bitcoin funds are eligible for tax-advantaged registered accounts. Similar to purchasing a stock on the exchange, investors can invest in Fidelity Advantage Bitcoin ETF™ the same way they invest in other ETFs, by purchasing ETF units on the TSX.
"Whether it is to diversify a portfolio, hedge against inflation or to gain exposure to an emerging asset class, we are excited to bring our innovative investments to the market and offer Canadian investors an opportunity to get exposure to bitcoin and help them meet their financial goals," said Creelman.
Source: Fidelity Canada
