FBTC Profile
The Fidelity Wise Origin Bitcoin Trust is an investment vehicle designed to offer investors exposure to Bitcoin without the need to directly purchase, store, or manage the cryptocurrency. The Trusts objective is to track the price performance of Bitcoin, utilizing a methodology based on price feeds from eligible Bitcoin spot markets. The index underlying the Trust is constructed using a volume-weighted median price (VWMP) methodology, which is calculated every 15 seconds using spot market data over rolling sixty-minute increments. This approach aims to provide a reliable and accurate reflection of Bitcoins market price.
To achieve its investment objective, the Fidelity Wise Origin Bitcoin Trust directly holds Bitcoin, and the value of its shares is determined daily at 4:00 p.m. EST using the same VWMP methodology employed to calculate the index. This valuation process ensures that the share price of the Trust closely mirrors the prevailing market price of Bitcoin, making it a transparent and efficient vehicle for investors seeking exposure to the digital currency. The Trusts structure is designed to minimize tracking error, allowing investors to gain more precise exposure to Bitcoins price movements.
The Trusts Bitcoin holdings are securely stored with a custodian, which is responsible for safeguarding the digital assets. This custodial arrangement is a critical component of the Trust, as it mitigates the risks associated with managing and securing Bitcoin privately. The custodian utilizes industry-leading security protocols to protect the Trusts Bitcoin from theft or loss, providing investors with peace of mind regarding the safety of their investment. By outsourcing the custody of Bitcoin to a professional third party, the Trust simplifies the process of investing in Bitcoin for institutional and individual investors alike.
The Fidelity Wise Origin Bitcoin Trust represents a significant step forward in the institutionalization of Bitcoin as an asset class. It offers a regulated and convenient means for investors to gain exposure to the cryptocurrency, without the complexities of directly purchasing and managing Bitcoin. The Trust is particularly appealing to those who wish to integrate Bitcoin into their portfolios within a familiar and secure framework. However, investors should be aware of the inherent volatility of Bitcoin and the potential risks associated with investing in a digital currency that operates in a rapidly evolving market landscape.
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