Blue money.
Yuichiro Chino.
Fidelity Investments is about to launch an exchange traded fund that is backed by bitcoin, but it's listing the fund in Canada because US regulators have not given the go-ahead for these particular products.
Fidelity Investments Canada told Insider that it would launch the Fidelity Advantage Bitcoin Exchange-Traded Fund on or around December 2nd under the ticker FBTC. Fidelity Clearing Canada will be the custodian of the fund and will allow investors to buy and sell the currency.
In February this year, regulators in Canada approved the funds for use in Europe. French regulators allowed an asset manager to list a spotbitcoin exchange traded fund.
A Fidelity Investments Canada spokesman told Insider that they would like to provide retail investors in Canada with an investment option for cryptocurrencies.
US investors only have access to the exchange traded funds for now. The US regulators have yet to approve Fidelity's listing of a spot bitcoin exchange traded fund.
Fidelity chose to offer a spot exchange traded fund over a futures one because investors can lose money when they roll their positions because the futures price is higher than the spot price of the underlying asset.
Limits on the number of futures contracts an exchange is allowed to hold may cause capacity constraints for the exchange.
The Fidelity Centre of Applied Technology began research and development efforts into a new type of technology in the summer of 2014).
Fidelity listing a bitcoin exchange traded fund in Canada was seen as a blow to regulators in America.
"This should be embarrassing for the SEC that one of America's biggest, most storied names in investing is forced to go up North to serve its clients," said Eric Balchunas.
Grayscale sent a letter to the SEC on Monday saying that it had no basis to approve the spot and futures versions of the exchange traded fund.
Business Insider has an original article.
