FBTC 📈 Fidelity Wise Origin - Overview

The Fidelity Wise Origin Bitcoin Trust, listed on BATS under the ticker FBTC, is an exchange-traded fund (ETF) that falls under the digital assets category. Its investment objective is centered around tracking the performance of bitcoin, utilizing a meticulously constructed index. This index is compiled by aggregating bitcoin price feeds from a variety of eligible bitcoin spot markets. The key to its methodology lies in the calculation of a volume-weighted median price (VWMP), which is updated every 15 seconds. This VWMP is derived from spot market data that is continuously collected over rolling sixty-minute periods, ensuring a dynamic and responsive pricing mechanism.

In order to achieve its investment goal, the trust is designed to hold bitcoin directly. The valuation of its shares occurs daily, with a specific cutoff time of 4:00 p.m. EST. The valuation methodology mirrors the one used for calculating the index, ensuring consistency and transparency. A critical aspect of the trust's operation is the role of its custodian, who is responsible for the safekeeping of all the trust's bitcoin holdings. This setup is intended to provide a secure and reliable way for investors to gain exposure to bitcoin through a traditional investment vehicle like an ETF, which is typically traded on regulated exchanges.

As a digital assets ETF, the Fidelity Wise Origin Bitcoin Trust represents a significant development in the financial sector, offering investors an opportunity to engage with bitcoin in a more familiar and regulated framework. By tracking the price of bitcoin through a robust and frequently updated index, the trust aims to reflect the performance of this leading digital currency. The use of a volume-weighted median price, combined with the continuous monitoring of spot market data, underscores the trust's commitment to providing an accurate and reliable investment product for those looking to invest in bitcoin.