Fidelity has applied to the US Securities and Exchange Commission (SEC) for an exemption for a Bitcoin-based financial product.
The product, known as the Wise Origin Bitcoin Index Fund, falls under the Pooled Investment Fund category according to the company’s Form-D filing dated August 26, 2020. Companies can provide a financial guarantee without the stamp of approval from the SEC registration. As long as they submit a Form D to the commission according to the SEC website.
Peter Jubber, President of Fidelity, introduced Model D for the maker of the Bitcoin Index (BTC), which encourages a minimum investment of $ 100,000. The filing lists the product under Federal Waiver 506 (b) so Fidelity can offer the product to as many certified investors as it wishes, although according to another SEC website, only 35 uncertified investors with financial experts can participate.
Under 506 (b), Fidelity is also not allowed to promote the product to the general public. There are many other details and parameters as well.
Over the course of 2020, Bitcoin has won the institutional interest of a number of stakeholders, including billionaire hedge fund founder Paul Tudor Jones. Fidelity has also recently positioned itself as an “emerging store of value”.