Fidelity’s Spot Bitcoin ETF Starts Trading in Canada

Canadians can now get direct exposure to Bitcoin through Fidelity’s spot exchange-traded fund.

Shutterstock cover by PL Gould

Key Takeaways

  • Today, Fidelity launched a physical spot Bitcoin ETF in Canada under the ticker FBTC.
  • The launch comes months after the firm met with SEC officials to seek approval for a similar product in the U.S.
  • The SEC has either not approved or outright rejected all spot crypto ETF applications so far.

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Fidelity, the world’s third-largest wealth management firm with over $4.2 trillion in assets under management, has launched a spot Bitcoin exchange-traded fund (ETF) on the Toronto Stock Exchange.

Fidelity Launches Spot Bitcoin ETF in Canada

Fidelity’s physical spot Bitcoin ETF started trading on the Toronto Stock Exchange today.

With over $4.2 trillion in assets under management, Fidelity Investments has become the largest asset manager to launch a spot Bitcoin exchange-traded fund (ETF). The Fidelity Advantage Bitcoin ETF, which began trading today on the Toronto Stock Exchange under the ticker FBTC, is designed to invest in “physical” or spot Bitcoin.

The launch comes several months after Fidelity officials met with the U.S. Securities and Exchange Commission (SEC) to seek approval for a similar product in the States. However, so far, the SEC either hasn’t approved or has outright rejected spot crypto ETFs, arguing that such products do not comply with the strictest rules for mutual funds.

The SEC’s Chair Gary Gansler has signaled the agency’s preference for derivatives or futures-based crypto ETFs on several occasions. However, the SEC has approved only a few such products over the last year, including VanEck’s and Valkyrie’s Bitcoin futures ETFs.

The regulator’s position to favor derivatives over spot-based crypto ETFs was recently challenged by Grayscale, who sent a letter to the agency arguing that its refusal to allow a spot crypto ETF constitutes “arbitrary and capricious action” within the meaning of the Administrative Procedure Act. “The Commission has no basis for the position that investing in the derivatives market for an asset is acceptable for investors while investing in the asset itself is not,” read the letter.

On the other hand, Canada has embraced spot crypto ETFs, which have attracted billions in investments over the recent period. While the SEC has left Americans sidelined, Canadian investors will now be able to get direct exposure to Bitcoin by purchasing shares of the Fidelity Advantage Bitcoin ETF (FBTC) with Canadian and U.S. dollars.

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