The Fidelity Advantage Bitcoin ETF (FBTC) is designed to invest in ‘physical’ spot Bitcoin, a model the US Securities and Exchange Commission has so far rejected, rather than Bitcoin futures contracts, which the US financial regulator has permitted.
The ETF will be unavailable, however, for most of the US fund group’s existing clients because of its listing in Canada, which means it will be off-limits to US retail investors.
The scheduled launch of FBTC on the Toronto stock exchange, alongside a sister mutual fund, comes more than eight months after it filed with the SEC to launch a similar spot Bitcoin ETF in its home market.
The first launch in Australia is expected soon, but while the US has thus far only permitted futures-based ETPs, some jurisdictions such as the UK have not even allowed these, with the Financial Conduct Authority, the UK regulator, warning that anyone investing in crypto assets ‘should be prepared to lose all their money’.
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