Multibillion dollar financial management expanded its reach and announced the Bitcoin ETF.

Fidelity Investments, the world's fourth largest asset under management with $ 4.2 trillion in assets under management, announced Thursday, December 2nd. spear. Mutual fund (commercial code: FBTC.U). Both are denominated in Canadian dollars and US dollars. It also makes Fuda the largest wealth management company offering Bitcoin services.

(Fidelity Investments official site supports FBTC / U Source: screenshot from official site / Financial news reporters comparison)

Fidelity Investments stated on its official website that these two ETFs have a secure wallet, an easier way to invest in Bitcoin, more assets and more investments compared to traditional ETFs.

It should be noted that unlike the Bitcoin Futures ETF (code: BITO) provided by the US financial services provider ProShares on October 19, Fidelity's Bitcoin ETF tracks the price of Bitcoin. In other words, the ETF aims to influence the value of Bitcoin, allowing investors to directly own Bitcoin instead of being affected by Bitcoin by derivatives.

The annual management rate for these two funds is 0.4%. As the assets are still new, operating and selling costs have not yet been announced. Over 98% of Bitcoins are purchased with money stored in a wallet.

This bitcoin and its sister exchange traded for three business days. As of the last trading day, the FBTC was down 8.88% to C $ 21.35, down 13.84% in three days.

It should be noted that this is the first time that such assets have been listed on the North American market of the Toronto Stock Exchange, Canada, rather than on the US Stock Exchange. So far, the US Securities Exchange (SEC) has only approved Bitcoin Futures ETF applications, but not Bitcoin Spot ETFs that track physical Bitcoin prices.

In this regard, Eric Balchunas, analyst at Bloomberg News ETF, tweeted: “One of America's biggest and most reputable companies is heading north to help consumers. It would be a shame for the SEC. noted.

(Source: Eric Balchunas Twitter screenshot)

US SEC:

Also raises concerns about Bitcoin ETFs

On October 19 of this year, ProShares listed the first Bitcoin-linked ETF in the United States on the New York Stock Exchange - Bitcoin Strategy ETF (Proshares Bitcoin Strategy ETF, market code: BITO). On its first day of trading, Bitcoin exceeded $ 63,000 a coin for the first time since April 16 and rose 1.56% in a single day. According to Bloomberg data, BITO's day one sales hit nearly $ 1 billion, the second highest in history and second only to BlackRock's carbon neutral ETF, with future revenue superior because of its previous investment. .

At press time, BITO closed at $ 31.05, down 8.43% from the previous trading day.

It's not the world's first Bitcoin-linked ETF, but it does mean cryptocurrency-related security has finally taken off in US financial markets after eight years. The industry sees this as a major flood for the cryptocurrency industry.

But in fact, the US SEC is still very cautious about financial regulation related to bitcoin.

(Initial history of Bitcoin ETF applications in the United States Source: Huobi)

In the eight years since Winklevoss first filed its Bitcoin ETF application with the SEC in 2013, whether the applicant has been a Proshares ETF tycoon or the CEO of the Grayscale cryptocurrency, and that ETF application documents are included. Instead, 25% of all data was denied by the SEC or advised to withdraw the request, bar none, even though only crypto assets were counted.

It wasn't until the end of October this year that the SEC changed its behavior and started approving an individual list of Bitcoin ETFs, and so far only three bitcoin ETFs have been approved in United States.

The SEC reiterated that its main concern is that the price of bitcoin is relatively easy to negotiate. The main reason is that neither the SEC nor the United States Commodity Futures Trading Commission (CFTC) can monitor cryptocurrency exchanges, suggesting that Bitcoin ETFs can restrict loose trading, even if they do not seek than the value of the most commonly traded exchanges.

The SEC also sees a lack of transparency in the cryptocurrency market and a potential lack of capital. This means that there are certain risks for investor protection.

The SEC's attitude towards bitcoin ETF sites directly open to bitcoin exposure is clearly 'no'.

In response to a Dec. 4 question from Senior Republican Pat Toomey of the US Senate Banking Committee, US SEC Chairman Gary Gensler said there was no oversight of Bitcoin and of its potential for fraud and call control problems. He said the SEC decision would not have been affected without the US administration's approval of Bitcoin's ETF.

Gensler also said in a speech to Congress last week: “The bitcoin market itself today is essentially unregulated. The lack of governance and oversight leads to the same result. Management and our staff will adhere to the legal standards and procedures required by federal law. security law.

The United States still has stricter rules, forcing buildings and businesses to look to other countries.

According to data from TrackInsight, Canada has now agreed to provide 23 Bitcoin-linked ETFs from seven organizations, and 37 cryptocurrency-linked ETFs / ETPs are also approved for registration in Europe, the United States, Germany, Sweden, Switzerland and Liechtenstein.

Separately, on December 2, the same day Fidelity FBTC was announced, Bitcoin Capital, an institution of Swiss venture capital firm FiCAS, also set up a Regulated Foreign Exchange System (ETP) of Swiss exchanges. to reduce Bitcoin and Ethereum risks. . give touches. ETP aims to respond to the variable cost of cryptocurrency assets through management. Bitcoin Capital says traders can get their goods from banks or employees the same way they invest in commodities or contracts.

China: tightening of cryptocurrency surveillance

The benefits of digital marketing have always been exposed to the risks of instability, financial failure, financial fraud, and fraudulent transactions, and anonymity and volatile transactions have always been a matter of caution. When it comes to Bitcoin, some issues arose last year, the smallest drop on the afternoon of December 4th. Bitcoin lost $ 10,000 in the afternoon, dropping more than 20% in 24 hours, and the entire network of over 400,000 people with $ 16.4 billion in revenue severed its job.

Contrary to the lax cryptocurrency policy of some foreign countries, China has continued to tighten its regulations on virtual currencies in recent years.

Already on September 4, 2017, seven departments, including the People's Finance Company of China and the Cyberspace Secretariat, announced the "Risk Protection Report of Token Report". Financial ".

And on September 24 of this year, China announced the strictest policy on the history of securities crypto. The Company and 10 other companies jointly announced the "Notice on the Protection and Safety of Hyper-Advertising in Virtual Currency Transactions" (hereinafter referred to as "Notice" and a "Notice" in which all transactions involving virtual results are illegal activity, it is also clear that this is a crime of money laundering. currency bank to provide services to Chinese people on the Internet. On the same day, the National Development and Development Commission the reform and 11 other departments jointly issued a "Notice of Innovation in Virtual Currency Mining" Activities "to revise the" coin speculation "model of all chains.

Many cryptocurrency trading platforms are also slowly pulling out of China.

On December 1, the Huobi cryptocurrency trading platform began issuing internal notices warning users in China to withdraw their assets, and it was confirmed that depositing users in China will be closed on December 14. On December 15, the market potential for large Chinese consumers will be limited and by December 31, the retail market will be taken off the shelves.

(Image source: Huobi warning screenshot)

According to foreign media, on December 2, Charlie Munger, 97, partner of “House God” Buffett, told an investment conference: “I think China made the right decision (Cryptocurrency) and our country made the wrong decision.

He also said that he would not marry a encrypt probe he also said that now international marketing is "crazy" than the internet bubbles in the 1990.