Overview of FBTC
The Fidelity Wise Origin Bitcoin Fund (FBTC) is an exchange-traded product designed to track the performance of bitcoin by holding it in custody with Fidelity Digital Assets®.
- Symbol: FBTC
- CUSIP: 315948109
- Inception Date: January 10, 2024
- Investment Objective: Replicate bitcoin's price performance via the Fidelity Bitcoin Reference Rate.
- Expense Ratio: 0.25%
👉 Explore FBTC's benefits for crypto investors
What Is Bitcoin?
Bitcoin is a decentralized digital currency powered by blockchain technology. Key characteristics include:
- Scarcity: Capped at 21 million coins.
- Decentralization: Maintained by a global network of nodes.
- Transparency: All transactions are recorded on a public ledger.
Store of Value Attributes
| Feature | Bitcoin |
|--------------|---------|
| Scarce | ✅ |
| Portable | ✅ |
| Divisible | ✅ |
| Verifiable | ✅ |
Bitcoin’s Supply & Demand Dynamics
Supply
- Fixed issuance schedule with periodic "halvings" (latest: April 2024).
- Mining rewards decrease over time, enhancing scarcity.
Demand
- Adoption driven by its use as a digital store of value.
- Address growth correlates with increasing market value.
Historical Performance & Correlation
Bitcoin has shown low correlation with traditional assets, making it a potential diversification tool:
- S&P 500: ~0.2 (52-week rolling)
- NASDAQ 100: ~0.3 (52-week rolling)
- U.S. Bonds: Near-zero correlation
Risks & Considerations
- Volatility: Bitcoin prices can swing dramatically.
- Regulatory Risks: Evolving laws may impact valuation.
- Technical Risks: Quantum computing could disrupt cryptography.
👉 Learn how to mitigate crypto investment risks
Fidelity’s Role in Digital Assets
Fidelity has been a pioneer in blockchain since 2014:
- 2019: Launched Fidelity Digital Assets® for custody.
- 2024: Introduced FBTC to bridge traditional and crypto markets.
Timeline Highlights
- 2014: Began blockchain research.
- 2022: Launched Fidelity Crypto® for retail.
- 2024: FBTC debuts as a spot bitcoin ETF.
FAQs
1. Is FBTC a good investment for beginners?
FBTC offers simplified exposure to bitcoin but remains high-risk. Beginners should assess their risk tolerance first.
2. How does FBTC differ from owning bitcoin directly?
FBTC is a regulated fund—investors don’t hold private keys but avoid custody hassles.
3. What’s the impact of bitcoin halvings?
Halvings reduce new supply, historically driving price increases long-term.
4. Can FBTC lose value?
Yes. Bitcoin’s volatility means FBTC’s NAV fluctuates accordingly.
For more details, read FBTC’s prospectus at i.fidelity.com/FBTC.
Disclaimer: Digital assets are speculative and involve risks. FBTC is not FDIC-insured.