Fidelity launches new crypto service, funds

Fidelity is jumping into the crypto world with both feet as Fidelity Investments Canada ULC files prospectuses for new a Bitcoin-based ETF and mutual fund and an affiliated firm launches a new digital asset trading and custody service.

Fidelity Investments’ back office sister company, Fidelity Clearing Canada ULC (FCC), is launching a new digital asset service for institutional investors. The service will allow investment dealers (its introducing broker clients), portfolio managers and investment funds to trade in cryptoassets with an Investment Industry Regulatory Organization of Canada-regulated firm.

The launch of the new service follows a decision from the Ontario Securities Commission granting regulatory relief to offer institutional clients “the ability to deposit, buy, hold, sell, and withdraw” crypto assets such as Bitcoin and Ether, along with digital tokens that aren’t considered securities or derivatives.

The relief exempts the firm from prospectus and trade-reporting requirements when entering into contracts with clients to trade and hold cryptoassets.

“The demand for investing in digital assets is growing considerably and institutional investors have been looking for a regulated dealer platform to access this asset class,” said Scott Mackenzie, president of FCC, in a release.

“We look forward to working with current and prospective clients and helping them to get exposure to Bitcoin,” he added.

Alongside the launch of the new service, Fidelity Investments also filed preliminary prospectuses for its own crypto funds: the Fidelity Advantage Bitcoin ETF and the Fidelity Advantage Bitcoin ETF Fund.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.