Fidelity International has announced the launch of its Bitcoin ETP on the London Stock Exchange. This addition is essential to seeing the ETP traded in the UK for professional investors outright. The announcement comes in tandem with the Financial Conduct Authority (FCA) giving exchanges permission to launch a new UK-listed sector for crypto asset-backed Exchange Traded Notes called cETNs, which are available specifically for institutional investors. This approval signals greater acceptance and validation of digital assets within the UK financial infrastructure.
Initially launched in February 2022, the Bitcoin ETP made its debut on the Deutsche Börse Xetra Exchange and the SIX Swiss Exchange. Fidelity International marketed the Bitcoin ETP as a low-cost, handy solution through which financiers can gain exposure to Bitcoin, leveraging Fidelity Digital Assets’ (FDA) role as a custodian. Meanwhile, the company is working to expand access to this investment option across diverse marketplaces worldwide in the months ahead in response to rising institutional demand for cryptography-backed resources.
According to Stefan Kuhn, Head of ETF & Index Distribution for Europe at Fidelity International, global investors have developed an appetite for cryptocurrencies due to the recent approval of ETFs in the US. Several investors are confident that the FCA’s move to approve Exchange Traded Notes for professional investors will be a good turn in its regulations towards crypto-backed assets. Kuhn emphasized that the Fidelity Physical Bitcoin ETP was crucial for UK-based institutional investors and commented, “The FCA’s decision to authorize crypto asset-backed Exchange Traded Notes for professional investors is a positive development and reflects the increasing acceptance and demand of digital assets offered through a secure and regulated exchange.”
In February 2024, Fidelity also slashed the Ongoing Charges Figure (OCF) for the ETP from 0.75% to just 0.35% as part of a broader strategic move aimed at enhancing its long-term competitiveness against other competitors in the crypto space. The price cut reflects that Fidelity remains committed to providing affordable investment opportunities for the more significant, professional investors amid increased retail investor interest in cryptocurrencies.
While listing Physical Bitcoin ETP on the LSE signifies the growing acceptance of digital assets within traditional markets, the road to full incorporation remains long. However, developments such as ETPs offered by Fidelity are indisputable, driving up the institutional adoption of digital assets. Deeper integration into traditional finance is undoubtedly on the way for cryptocurrencies.
