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Fidelity’s physical bitcoin ETF starts trading in Canada

Fidelity Canada has launched its Spot Bitcoin Exchange Traded Fund (ETF) in the country, the company announced on Thursday. The asset manager, which is now the largest provider of Bitcoin ETFs, has also launched a mutual fund.

The Fidelity Advantage Bitcoin ETF has started trading on the Toronto Stock Exchange (TSX) under the ticker symbol FBTC for the Canadian dollar version and FBTC.U for the US dollar version. The Fidelity Advantage Bitcoin ETF Fund is the mutual fund version of the offering and invests all of its assets in the ETF.

“We are pleased to have a professionally managed Bitcoin ETF and ETF fund backed by the strength and size of Fidelity,” said Kelly Creelman, senior VP of Products and Marketing at Fidelity Canada, in the statement.

Fidelity Investments Canada ULC is the Canadian arm of Fidelity Investments Inc. In November, the asset manager received regulatory approval from the country to launch an institutional Bitcoin trading and custody platform, Fidelity Clearing, leveraged by the Bitcoin ETF launched today. It is the first Investment Industry Regulatory Organization of Canada (IIROC) to offer bitcoin trading and custodian services for institutional investors there.

The Fidelity Advantage Bitcoin ETF invests differently in Bitcoin than the products available in the US markets. In October, the Securities and Exchange Commission approved the US’s first bitcoin-linked bitcoin ETF; However, the ProShares Bitcoin Strategy ETF invests in Bitcoin futures contracts. Increased costs and risks associated with these types of investment vehicles have resulted in other asset managers dropping requests for future listings and increasing pressure on the SEC to approve a spot offer in the American markets.

In March, Fidelity filed for listing of a spot Bitcoin ETF in the US, but it is unclear when the country’s regulators will follow suit to approve a convenient route for direct bitcoin exposure. The first product of its kind to hit the market in North America was listed in Canada in February, and the increased appetite of investors has not yet caught on with the SEC.

The commission has claimed that there is not yet enough investor protection in bitcoin markets to allow the launch of a spot bitcoin ETF. Your boss, Gary Gensler, spoke on the subject yesterday and listed some requirements that issuers must meet in order to be listed on the stock exchange. The SEC has a growing pile of papers pending approval.

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