Speculators (I mean, investors) will soon have a (more legitimate) way to play with Bitcoin.
That is, assuming that the Securities and Exchange Commission agrees to declare the registration statement effective.
Asset management behemoth Fidelity filed this week to create an exchange traded fund (ETF) “Wise Origin Bitcoin Trust” that will trade on a national securities exchange.
Its objective is to track the performance of Bitcoin based on its own index which will be constructed using bitcoin price feeds from eligible bitcoin spot markets and a volume-weighted median price methodology, calculated every 15 seconds based on VWMP spot market data over rolling 5-minute increments.
“The Index is designed to reflect the performance of bitcoin in U.S. dollars. In seeking to achieve its investment objective, the Trust will hold bitcoin and will value its Shares daily based on the same methodology used to calculate the Index.”
The Trust won’t buy/sell Bitcoin directly but when it sells or redeems its shares, it will do so in “in-kind” transactions in blocks of a number of Shares that are based on the quantity of bitcoin attributable to each Share of the Trust.
So, it’s like the S&P500 Index of cryptocurrency.
Read the Registration Statement here: https://www.sec.gov/Archives/edgar/data/1852317/000119312521092598/d133565ds1.htm
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