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Multitrillion-Dollar Asset Manager Fidelity Will Serve As Custodian for New Bitcoin Trust

June 13, 2020

Fidelity Digital Assets, the Bitcoin and crypto custody arm of financial titan Fidelity Investments, which manages $7.3 trillion in client assets, will act as the custodian for a new BTC trust.

In a recent Securities and Exchange Commission (SEC) filing, New York-based investment management firm Wilshire Phoenix seeks to offer the king cryptocurrency to its clients who will be able to gain exposure to the digital asset through a publicly-traded fund dubbed “Bitcoin Commodity Trust”.

“The Shares will provide investors with exposure to bitcoin in a manner that is accessible and cost-efficient without the uncertain and often complex requirements relating to acquiring or holding bitcoin.”

Wilshire Phoenix intends to register 80,000 shares of the new Bitcoin trust with each share carrying a maximum price of $25. The investment company has appointed Fidelity Digital Assets as the custodian of the fund’s BTC.

“[The] Bitcoin will be held by Fidelity Digital Asset Services, LLC (the ‘Bitcoin Custodian’ or ‘FDAS’) on behalf of the Trust.”

On top of safeguarding and maintaining the trust’s BTC, Fidelity is tasked to sell or purchase Bitcoin on behalf of Wilshire Phoenix. While most of the fund’s BTC will be stored in Fidelity’s omnibus wallet, a certain percentage of the BTC will be held in cold storage.

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Featured Image: Shutterstock/Dmytro Gilitukha