Fidelity Investements will launch a spot Bitcoin ETF in Canada.
The firm decided not to wait around for SEC approving spot Bitcoin ETFs in the US.
NEW DELHI (CoinChapter.com) — One of the world’s largest asset managers, US-based Fidelity Investments plans to launch a spot Bitcoin ETF in Canada, subject to regulatory approval.
The fund, Fidelity Advantage Bitcoin ETF, is currently pending approval on a Canadian exchange. Once approved, it will make Fidelity the biggest asset manager that offers Bitcoin exposure to its clients, Bloomberg senior ETF analyst Erick Balchunas said on Twitter.
This should be embarrassing for the SEC that one of America's biggest, most storied names in investing is forced to go up North to serve its clients. But it prob won't matter.
Fidelity Investments has over $4 trillion in assets under management, placing it in the top 5 list of the largest asset managers.
Investors in the US are still waiting for the Securities and Exchange Commission (SEC) to approve a spot Bitcoin ETF after it rejected VanEck Associates’ application in early Nov. However, the SEC seems to have no problem with Bitcoin futures ETF.
Fidelity would actively manage the new fund and directly buy Bitcoins instead of providing BTC exposure through derivatives instruments. The investment manager is also waiting for SEC approval to launch a spot Bitcoin ETF in the US.
Fidelity recently received regulatory approval for Fidelity Clearing Canada, the country’s first entity to offer digital currency trading and custody solutions for institutional investors.
While still a pipe dream in the US, Bitcoin ETFs are already available to investors in various countries, including Canada, Dubai, and Brazil.
Bitcoin ETFs – Spot And Futures
An ETF, or Exchange Traded Fund, is an investment vehicle, which investors can publicly trade like a stock. However, it tracks the performance of an underlying asset or index. It provides investors exposure to the underlying asset, like gold, without investors having to own the asset.
A Bitcoin ETF provides investors exposure to the world’s largest cryptocurrency.
Furthermore, Bitcoin ETFs can be either a futures ETF or a spot ETF. A futures ETF is a fund in which investors buy or sell a contract that represents the value of Bitcoin. However, when trading Bitcoin futures, investors do not own the underlying crypto.
Related: ProShares Bitcoin ETF’s debut is the strongest ever on Wall Street; what’s next for BTC?
Instead, the trader has a contract promising the buying or selling of the crypto at a future date. In essence, the Bitcoin futures ETF tracks the price of Bitcoin futures, not the cryptocurrency itself.
Meanwhile, a spot Bitcoin ETF tracks the price of physical Bitcoins. It allows investors exposure to cryptocurrency through a regulated and familiar financial product. In a Bitcoin ETF as well, the investors do not own Bitcoin directly. Instead, the asset management firm buys and holds it for them.
Meanwhile, Bitcoin Prices.
BTC continues to trend upward following a struggling comeback from last week’s Covid FUD fueled crash. The decline saw Bitcoin test its ascending trendline and 100-day MA line support confluence over the weekend. However, BTC prices started the current week in an uptrend.
On Nov 30, BTC challenged the $59,000 price level before retreating and closing the day down by 2%. At present, Bitcoin faces immediate resistance at $59,011, near its 26-day EMA. The current uptrend would likely see BTC test the $61,103 price target before any pullbacks occur.
BTC prices jumped over 4% between low ($56,547) to high ($58,872) on Dec 1, which might be a likely reaction to news of Fidelity’s spot ETF launch. However, if Bitcoin’s uptrend loses steam, immediate support for BTC is at $56,787. Sustained selling sentiment would likely see BTC retest the ascending trendline support.
Meanwhile, trend-based momentum oscillator MACD is forecasting bearish momentum for BTC. However, bars on the MACD histogram are contracting, indicating the difference between the MACD line (difference between 12-day and 26-day) and its signal line (9-day EMA of MACD) is decreasing.
With the MACD line moving upwards, a bullish crossover is likely to occur soon. A bullish crossover occurs when the MACD line moves above its signal line and often acts as a bullish catalyst for an asset.
At present, BTC is trading at $58,600, up 2.53% on the day.
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.
Bitcoin (BTC) price stood at $24,244 in the Asian-Pacific session on July 29, after a 15% upside move since...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.