Fidelity launches competitive Bitcoin ETP on London Stock Exchange

Fidelity International has launched the Fidelity Physical Bitcoin ETP on the London Stock Exchange for professional investors, according to a July 31 press release.

The launch comes as Bitcoin investment products are multiplying worldwide following the record-setting success of US-based spot Bitcoin exchange-traded funds (ETFs) launched in January.

Bitcoin ETP in London

Fidelity’s ETP will be fully backed by physical Bitcoin that will be custodied at Fidelity’s Digital Assets.

The firm stated that its ETP offers investors a cost-effective and convenient way to gain Bitcoin exposure. The product’s Ongoing Charges Figure (OCF) has been reduced to 0.35%, making it more competitive for professional investors. The OCF represents the annual management cost.

Meanwhile, Fidelity’s ETP is coming around four months after the UK Financial Conduct Authority (FCA) approved crypto-based exchange-traded notes (cETNs) for professional investors. This approval has led to the introduction of similar products by leading investment firms like 21Shares, WisdomTree, and GlobalX.

Stefan Kuhn, Fidelity’s Head of ETF and Index Distribution in Europe, pointed out that the approval of spot Bitcoin ETFs in the US has triggered a global interest in the industry. He added:

“The FCA’s decision to authorise 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.”

Grayscale mini Bitcoin fund goes live

Grayscale Bitcoin Mini Trust (BTC), a smaller version of the Grayscale Bitcoin Trust (GBTC), began trading on the NYSE Arca today, July 31.

Grayscale said the fund, with an ultra-low fee of 0.15%, started trading with a NAV per share of $5.84. As of July 30, the fund was seeded with 10% of GBTC’s BTC assets, which gave it access to a diversified investor base and $1.7 billion in assets under management (AUM).

Eric Balchunas, Bloomberg senior ETF analyst, highlighted the product’s significance to the market, noting that its fees were “about 10x cheaper than spot ETFs in other countries and other vehicles.”

Notably, Grayscale had initially launched a similar product with its Ethereum fund, ETHE. After transforming ETHE into a high-fee ETF charging 2.5%, the company introduced the Ethereum Mini Trust (ETH), featuring a reduced fee of 0.15%.

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