New SEC Filing Shows Fidelity Preparing to Launch Bitcoin Fund

The U.S. Securities and Exchange Commission (SEC) has published a new filing for a bitcoin fund, submitted by Fidelity Investments’ head of strategy and planning.

Bitcoin Index Fund Filed With SEC

The SEC published Wednesday a Notice of Exempt Offering of Securities (Form D) filing for a new bitcoin fund. The issuer is Wise Origin Bitcoin Index Fund I, incorporated in Delaware this year. The minimum investment for this new bitcoin fund that will be accepted from any outside investor is $100,000. Fidelity Brokerage Services and Fidelity Distributors Company will receive sales compensation.

Peter Jubber, Head of Strategy and Planning at Fidelity Investments, is listed as “the President and a director of FD Funds GP LLC, the general partner of the issuer.” Jubber has also filed Form D with the SEC for two other funds of similar names that do not mention bitcoin: Wise Origin Fund I and Wise Origin Fund II. The former was filed in January and the latter in April.

A person familiar with the matter told Bloomberg on Wednesday that the fund will be a passively-managed, bitcoin-only fund available to qualified investors. Fidelity Digital Assets, the cryptocurrency arm of Fidelity Investments, will custody the fund. “Fidelity has made a long-term commitment to the future of blockchain technology and to making digitally-native assets, such as bitcoin, more accessible to investors,” the company said in a statement to the news outlet.

Wednesday’s filing seeks an exemption from registration requirements under Rule 506(B) of Regulation D for private placements. This rule allows companies to raise an unlimited amount of money and sell securities to an unlimited number of accredited investors, subject to some restrictions, such as not allowing general solicitation or advertising to the market.

Fidelity’s filing comes as bitcoin is gaining popularity among institutional investors. In June, Fidelity Digital Assets released the results of a survey it conducted on institutional interest and adoption of cryptocurrencies. “Almost 80% of institutional investors find something appealing about digital assets,” the firm found.

What do you think about Fidelity launching a bitcoin fund? Let us know in the comments section below.

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