New bitcoin exchange-traded products (ETPs) have listed on Swiss stock exchange SIX as Fidelity Exchange Traded Products GmbH is joining issuer ranks and further expanding the product range.
Fidelity is listing two new Bitcoin ETPs in US dollars and Swiss francs, which brings the total number of crypto issuers to 10, and the number of tradable crypto ETPs to 133. With 18 different cryptocurrencies as underlying assets, SIX currently offers investors access to 208 products, the largest choice of any regulated exchange.
The Zurich-based market operator reported in February that cryptocurrency products hit a trading turnover of CHF 296.4 million ($321 million). In total, 175 products were traded, and 17,735 transactions concluded. The highest turnover and the most transactions were recorded by AETH, an ETP on Ethereum, with CHF 54.4 million and 2,042 trades.
The new listings on Switzerland’s principal exchange come shortly after Fidelity International launched a physical bitcoin exchange traded product designed for sophisticated investors in Europe.
Listed on the Deutsche Börse in Frankfurt and SIX Swiss Exchange in Zurich, the Fidelity Physical Bitcoin ETP is 100% backed by holdings in the underlying digital coin. The investment vehicle, which is available to professional and institutional investors in Europe, aims to deliver the price performance of Bitcoin, less a fixed 0.75% annual fee.
Fidelity’s cryptocurrency unit already features institutional-grade, crypto linked services, including custody offerings to safeguard holdings and execution services 24 hours a day, seven days a week.
Fidelity, which has nearly $813 billion in assets under management (AUM), has been trying to structure a product that looks as close as possible to a traditional ETF. Trading bitcoin through an ETP structure removes the technical challenges associated with cryptocurrency such as setting up a wallet or trading or unregulated exchanges.
Fidelity expands in Europe as US denied its ETF proposal
Fidelity Digital Assets, the cryptocurrency arm of Boston-based Fidelity Investments, only serves institutional investors such as hedge funds, family offices and market intermediaries.
Initially launched in the US, Fidelity’s crypto arm made the decision to target Europe back in 2019, hiring Chris Tyrer from Barclays to lead operations. The unit is one of the first crypto custody and trading platforms to be launched by an incumbent financial services player.
The European listings also come a few weeks after the US Securities and Exchange Commission denied Fidelity Investments’ application for a long-awaited spot bitcoin exchange-traded fund (ETF).
Nick King, Head of ETFs at Fidelity, comments on the new products: “The launch of the Fidelity Physical Bitcoin ETP is an important evolution of our exchange traded product offering and the first step in our digital assets product capability. Working with best-in-class service providers, including Fidelity Digital Assets and Brown Brothers Harriman, has allowed us to deliver an extremely robust product structure which allows our clients in Europe to obtain access to Bitcoin in a secure and convenient way.”
Christian Reuss, head of SIX Swiss Exchange, notes: “Our first-class trading infrastructure and our clear framework for crypto underlyings are key reasons why clients are increasingly turning to us for crypto product listing and trading. We very much welcome Fidelity to join our ETP issuers and further expand the product range.”