Updated 03 Dec, 2021

Two Bitcoin Funds by Fidelity Canada Make Trading Debut

Vector of Canadian leaf with two Bitcoin logo hovering in the back. Two Bitcoin Funds by Fidelity Canada Make Trading Debut

Key Takeaways:

  • Fidelity Canada launches a Bitcoin ETF and a Bitcoin mutual fund as adoption grows
  • Fidelity manages over $160 billion in Canada and is one of the country’s top investors

Fidelity Canada Launches Two Bitcoin Funds

Fidelity, a leading investment management firm with branches all over the world, has released two Bitcoin funds for trading in Canada. The step highlights the growing interest among institutional investors to hold and offer bitcoin products.

In more detail, on Thursday, Fidelity Canada officially launched two Bitcoin funds for trading on the Toronto Stock Exchange. The first one, the Fidelity Advantage Bitcoin ETF, is an exchange-traded fund. The second one, the Fidelity Advantage Bitcoin ETF Fund, is a mutual fund.

Kelly Creelman, Senior Vice President, Products & Marketing at Fidelity Investments Canada, praised the decision to launch Bitcoin products. She acknowledged that bitcoin is gaining recognition among investors and market participants. Moreover, Ms. Creelman noted the company is “pleased to offer a professionally managed bitcoin ETF and ETF Fund”. Both funds, she said, will be “supported by the strength and scale of Fidelity.”

The Move Marks Growing Interest for BTC Exposure

The move by the institutional investor, managing over $160 billion in Canada, comes amid an increased appetite for bitcoin exposure. In other words, retail traders and investors in Canada could now have access to bitcoin through these funds.

What makes these funds different than the ones on Wall Street is the type of bitcoin products. The bitcoin ETFs now trading in the US offer bitcoin futures. This was decided by the Securities and Exchange Commission, the financial regulator in the US, which still has not approved a spot Bitcoin ETF.

In contrast, the two funds that made their trading debut in Canada hold actual bitcoin. On this note, investors who buy into these funds will own units of the ETF, which trades the spot price of bitcoin.

“Whether it is to diversify a portfolio, hedge against inflation, or gain exposure to an emerging asset class, we are excited to bring our innovative investments to the market,” said Creelman. Additionally, she said the company is happy to offer Canadian investors an opportunity to get exposure to bitcoin and help them meet their financial goals.”

Bitcoin Adoption Continues to Advance

Presently, analysts point that the digital asset market is still in its early stages of development. In numbers, about 400 million people hold some cryptocurrency. In that context, make sure to check our bitcoin buying guide so you can be among the early adopters in the fast-developing cryptocurrency market.