# Fidelity Wise Origin Bitcoin Fund

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Fidelity Wise Origin Bitcoin Fund).

## Overview

Fidelity Wise Origin Bitcoin Fund is a Delaware statutory trust that issues exchange-traded shares designed to track the price of bitcoin. It gives investors bitcoin exposure through a traditional brokerage account while the Trust itself holds bitcoin in custody and does not use derivatives or active trading strategies.

## Products & services

• Exchange-traded shares providing bitcoin exposure
• Daily NAV based on Fidelity Bitcoin Reference Rate
• Physical bitcoin custody through Fidelity Digital Assets
• Creation/redemption of 25,000-share baskets
• Passive, spot-bitcoin tracking structure

- **Exchange-traded bitcoin exposure** (100%) — Listed shares that provide investors with exposure to bitcoin price movements through a regulated brokerage account.
- **Custody and administration structure** (0%) — Operational services supporting safekeeping, transfer, valuation, and share issuance/redemption.

- Exchange-traded shares representing fractional bitcoin exposure
- Daily NAV calculation tied to the Fidelity Bitcoin Reference Rate
- Direct holding of bitcoin in custody rather than synthetic exposure
- Basket creation and redemption in 25,000-share blocks
- Passive spot-bitcoin strategy with no derivatives

## Customers

The Trust’s investors are brokerage clients and institutions that want bitcoin exposure without directly buying, storing, or transferring the asset themselves. Authorized Participants are the key market-facing counterparties because they create and redeem baskets of shares, while secondary-market investors trade the listed shares on Cboe BZX. The product is aimed at investors seeking a familiar wrapper around bitcoin rather than direct crypto custody.

- **Retail brokerage investors** (primary) — Buy listed shares for bitcoin exposure without managing wallets, private keys, or crypto exchanges.
- **Institutional allocators** (primary) — Use the Trust as a regulated, exchange-traded vehicle for tactical or strategic bitcoin exposure.
- **Authorized Participants** (primary) — Create and redeem baskets of shares in exchange for bitcoin or cash to keep market price aligned with NAV.
- **Secondary-market traders** (secondary) — Trade shares on Cboe BZX for liquidity, price discovery, and short-term exposure management.

- Retail brokerage investors seeking bitcoin exposure in a standard account
- Institutional investors using listed ETPs for portfolio allocation
- Authorized Participants that create and redeem share baskets
- Market makers and liquidity providers supporting trading
- Investors avoiding direct custody, wallet management, or on-chain transfers

## Geography

The Trust is organized in Delaware and listed in the United States, with trading on Cboe BZX and reporting under U.S. GAAP. Its economic exposure is global because the underlying asset is bitcoin, but the operating structure, custody, and regulatory framework are U.S.-centric. The Trust’s service providers, including the custodian and transfer agent, are also U.S.-based.

- Delaware statutory trust with U.S. securities-law reporting
- Listed and traded on Cboe BZX Exchange in the United States
- Custody and administration handled by U.S.-based service providers
- Underlying bitcoin exposure is global, but pricing is in U.S. dollars
- Regulatory and tax exposure is primarily U.S.-driven

## Strategy

The Trust’s strategy is to provide low-friction, passive bitcoin exposure that closely tracks the reference index after expenses and liabilities. It relies on physical bitcoin custody, daily valuation, and basket creation/redemption mechanics to keep shares aligned with underlying bitcoin value. The structure is designed to make bitcoin accessible through conventional brokerage infrastructure rather than direct crypto ownership.

- **Maintain tight tracking to bitcoin** (short-term) — The Trust’s value proposition depends on minimizing tracking error versus the reference rate and spot bitcoin.
- **Preserve custody and operational integrity** (short-term) — Secure custody and reliable transfer/redemption processes are essential for investor confidence and product continuity.
- **Expand access through traditional brokerage channels** (medium-term) — The Trust competes by making bitcoin available in a familiar listed-security format.

- Track bitcoin as closely as possible through a passive structure
- Use daily valuation and index methodology to support pricing integrity
- Maintain custody with Fidelity Digital Assets for operational control
- Support efficient creations/redemptions to reduce share price dislocation
- Offer a brokerage-friendly wrapper around direct bitcoin exposure

## Risks

The Trust is highly exposed to bitcoin price volatility, which can drive large swings in NAV and market price. It also faces structural risks from tracking error, custody and cybersecurity issues, regulatory scrutiny of digital assets, and potential conflicts involving the Sponsor and its affiliates. Because the product depends on market access, authorized participants, and service providers, operational disruptions could impair creations, redemptions, or valuation.

- **Bitcoin price volatility** [critical] — The Trust’s assets are concentrated in bitcoin, so changes in bitcoin price directly drive NAV and investor returns.
- **Tracking error versus reference rate** [high] — Fees, transaction costs, creation/redemption timing, and pricing differences can cause performance to diverge from bitcoin.
- **Custody and cybersecurity risk** [high] — All bitcoin is held by the custodian, so operational or cyber incidents could disrupt access or valuation.
- **Regulatory and AML/KYC risk** [high] — Digital asset markets face evolving regulation and sanctions/AML scrutiny that could affect counterparties and trading access.
- **Sponsor conflict of interest** [medium] — The Sponsor and affiliates may have interests that differ from shareholders, affecting decisions and resource allocation.

- Bitcoin price volatility can sharply reduce NAV and share price
- Tracking error may cause performance to diverge from spot bitcoin
- Custody or cybersecurity failures could impair access to holdings
- Regulatory or AML/KYC changes could restrict market access
- Sponsor and affiliate conflicts may not align with shareholders
- Secondary-market price can trade at a premium or discount to NAV

## Accounting

The most important accounting judgment is fair value measurement of bitcoin, which depends on identifying the principal market and applying daily pricing at a specific measurement time. Because the Trust holds a single volatile asset and has limited cash, small valuation changes can materially affect NAV and reported results. Investors should also watch expense accruals, sponsor fee assumptions, and the accounting impact of bitcoin sales used to fund redemptions or expenses.

- **Fair value measurement of bitcoin** — Can materially change reported asset value and unrealized gains/losses
- **Principal market determination** — Affects daily NAV and comparability across periods
- **Sponsor fee accrual** — Impacts operating expenses and net asset value
- **Realized versus unrealized bitcoin gains/losses** — Affects reported results of operations

- Fair value of bitcoin depends on principal market selection and pricing time
- Daily NAV changes flow directly from bitcoin mark-to-market movements
- Sponsor fee is based on bitcoin holdings and affects expense accruals
- Redemptions and expense funding may require bitcoin sales and realized gains/losses
- Limited cash balance makes period-end balances and flows highly variable

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*Last updated: 2026-04-28T20:08:02.676589+00:00*