Fidelity's Wise Origin BitcoinFund (FBTC) is an exchange-traded fund that follows the bitcoin price. Proposed in June 2023, Fidelity's ETF was backed by the U.S. Securities and Exchange Commission on January 11, 2024, together with 10 others. Interested investors can purchase FBTC via typical brokerage accounts on the CBOE stock exchange.

So, what exactly is a bitcoin ETF? An ETF is a fund traded on stock markets. It usually contains assets like stocks, commodities, or bonds and trades close to its net asset value throughout a trading day. ETFs allow investors to diversify their investments and access various asset classes easily.

A spot bitcoin ETF possesses bitcoin as its core asset. It allows investors to benefit from bitcoin price shifts without directly buying and securing the cryptocurrency, which can be complicated and risky. Regulated oversight of spot bitcoin ETFs offers investors a sense of assurance and protection, lessening risks like fraud and operational issues encountered in unregulated cryptocurrency platforms.

Who is the issuer of FBTC, Fidelity? Fidelity Investments, headquartered in Boston, Massachusetts, is a major financial services firm globally. Managing vast financial products and services for individual investors, businesses, and institutional clients, Fidelity boasts substantial assets under administration and management. Established in 1946, the company handles mutual funds, wealth management, and various financial services.

What are the fees associated with FBTC? Fidelity's spot bitcoin ETF carries a sponsor fee of 0.25%, which was decreased from the initial 0.39% planned fee. The ETF is waiving the fee until July's conclusion. A sponsor fee is a payment imposed by the issuer for fund management. Before spot bitcoin ETF approvals, issuers competed to offer the lowest fees to attract more investors.

How does Fidelity's ETF differ from others? Fidelity stands out, especially due to its strong brand. FBTC witnessed rapid asset accumulation after its launch, attracting over $7 billion in bitcoin within two months. This success is also reflected in its trading volumes, which rank high in the market. Fidelity differentiates itself by directly handling the custody of its bitcoin, managing private keys through Fidelity Digital Assets, mitigating risks associated with third-party custodians.

Are Fidelity's Bitcoin addresses public? While not publicly acknowledged, Arkham Intelligence was able to identify FBTC's public bitcoin addresses, indicating the amount of bitcoin Fidelity holds for its ETF. Transactions to and from these addresses are traceable, allowing anyone to monitor funds on a block explorer.