Fidelity International Bitcoin ETP Launch

Fidelity International announced on Wednesday that its bitcoin exchange-traded product (ETP) is now listed on the London Stock Exchange, accessible solely to professional investors.

The Fidelity Physical Bitcoin ETP (ticker: FBTC) launched following approval from the UK’s Financial Conduct Authority (FCA) for bitcoin-backed exchange-traded notes aimed at professional investors, a decision made in late May. This regulatory shift opens opportunities for firms like 21Shares, WisdomTree, and Global X to offer similar products in the UK market.

Stefan Kuhn, Fidelity International’s head of ETF & Index Distribution Europe, remarked, “The FCA’s decision to authorize crypto asset-backed ETNs for professional investors is a positive development, reflecting the growing acceptance and demand for digital assets through a regulated exchange. The Fidelity Physical Bitcoin ETP provides a secure and straightforward option for professional investors in the UK.”

Background on Fidelity’s ETP

Fidelity’s bitcoin-backed ETP, launched in February 2022, is 100% physically backed by bitcoin and tracks its price movements. Initially listed on the Deutsche Börse Xetra and the SIX Swiss Exchange, it aims to offer a convenient and cost-effective means for investors to gain bitcoin exposure. Fidelity Digital Assets serves as the digital asset custodian for this product.

In February 2024, Fidelity reduced the Ongoing Charges Figure (OCF) of its bitcoin ETP from 0.75% to 0.35%, enhancing the product’s competitiveness. The OCF indicates the annual management cost associated with an investment product, such as a fund or ETP.