Fidelity International has launched the Fidelity Physical Bitcoin ETP on the London Stock Exchange for professional investors, according to a July 31 press release.
The launch comes at a time when Bitcoin investment products are proliferating globally following the record-breaking success of US-based spot Bitcoin Exchange-Traded Funds (ETFs) launched in January.
Bitcoin ETP in London
Fidelity’s ETP will be fully backed by physical Bitcoin, which will be held at Fidelity’s Digital Assets.
The company stated that its ETP offers investors a cost-effective and easy way to gain Bitcoin exposure. The product’s Ongoing Charge Figure (OCF) has been reduced to 0.35%, making it more competitive for professional investors. The OCF represents the annual management costs.
Meanwhile, Fidelity’s ETP comes about four months after the UK’s Financial Conduct Authority (FCA) approved crypto-based exchange-traded notes (cETNs) for professional investors. This approval has led to the introduction of similar products by leading investment firms such as 21Shares, WisdomTree and GlobalX.
Stefan Kuhn, head of Fidelity’s ETF and Index Distribution in Europe, pointed out that the adoption of spot Bitcoin ETFs in the US has sparked global interest in the sector. He added:
“The FCA’s decision to allow crypto asset-backed Exchange Traded Notes for professional investors is a positive development and reflects the increasing acceptance and demand for digital assets offered through a secure and regulated exchange.”
Grayscale mini Bitcoin fund goes live
Grayscale Bitcoin Mini Trust (BTC), a smaller version of the Grayscale Bitcoin Trust (GBTC), began trading on the NYSE Arca today, July 31.
Grayscale said the fund, with an ultra-low fee of 0.15%, began trading with a NAV per share of $5.84. As of July 30, the fund was stocked with 10% of GBTC’s BTC assets, giving it access to a diversified investor base and $1.7 billion in assets under management (AUM).
Eric Balchunas, senior ETF analyst at Bloomberg, marked the product’s significance to the market, noting that its costs were “about 10x cheaper than spot ETFs in other countries and other vehicles.”
Notably, Grayscale had initially launched a similar product with its Ethereum fund, ETHE. After transforming ETHE into a high-fee ETF that charges 2.5%, the company introduced the Ethereum Mini Trust (ETH), with a reduced fee of 0.15%.