Fidelity International has entered the cryptocurrency space with the launch of the cheapest physically-backed bitcoin exchange-traded product (ETP) in Europe.
The Fidelity Physical Bitcoin ETP (FBTC) is listed on the Deutsche Boerse and Frankfurt Stock Exchange with a total expense ratio (TER) of 0.75%.
The cheapest bitcoin ETP in Europe is Valour's synthetically-replciated Bitcoin Zero SEK (BTC ZERO SEK) which has a management fee of 0%.
FBTC is set to list on the SIX Swiss Exchange in the coming weeks.
FBTC will be centrally cleared by Eurex Clearing with Fidelity Digital Assets acting as custodian.
Brown Brothers Harriman will act as the administrator and transfer agent for the product.
Fidelity International said it launched FBTC for institutional and professional clients following a Fidelity Digital Assets survey which found 70% of institutional respondents expect to invest in digital assets in the future.
Christian Staub, managing director for Europe at Fidelity International, said:“The underlying Distributed Ledger Technology (DLT) has the potential to revolutionise the financial system over time and disrupt many parts of the financial world with profound implications for investors.
“As this technology becomes increasingly accepted, our clients are rightly asking for an efficient way to benefit from this trend. FBTC offers clients an institutional quality solution to enter the market in a familiar, simple and secure way.”
Fidelity is the latest ETF issuer to enter the rapidly developing digital assets market. Last November, US giant Invesco unveiled the Invesco Physical Bitcoin ETP (BTIC) which listed on Deutsche Boerse.