Fidelity Wise Origin Bitcoin Fund (FBTC) Covered Calls

The Fidelity Wise Origin Bitcoin Fund is an exchange-traded product designed to track the performance of the price of bitcoin, as measured by the Fidelity Bitcoin Reference Rate. It provides a familiar investment vehicle for gaining exposure to digital assets within traditional brokerage accounts. The trust holds physical bitcoin in institutional-grade cold storage managed by Fidelity Digital Assets, eliminating the need for investors to manage private keys or use crypto exchanges.

You can sell covered calls on Fidelity Wise Origin Bitcoin Fund to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for FBTC (prices last updated Fri 4:16 PM ET):

Fidelity Wise Origin Bitcoin Fund (FBTC) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
60.96 +5.51 60.96 60.99 10.4M - 0.0
Covered Calls For Fidelity Wise Origin Bitcoin Fund (FBTC)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 60 3.40 57.59 4.2% 102%
Mar 20 60 5.00 55.99 7.2% 61.1%
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Extended Business Description

Fidelity Wise Origin Bitcoin Fund is a spot bitcoin exchange-traded fund (ETF) that offers investors a regulated and secure way to participate in the price movements of the world’s largest cryptocurrency. Managed by FD Funds Management LLC, a subsidiary of Fidelity Investments, the fund seeks to track the Fidelity Bitcoin Reference Rate. By leveraging Fidelity's deep heritage in asset management and digital custody, FBTC provides a bridge for traditional investors to access the crypto economy with institutional-grade security.

Core Business and Products

  1. Physical Bitcoin Backing: The fund is a spot product, meaning it holds actual bitcoin rather than derivatives. Each share represents a fractional interest in the trust's total bitcoin holdings, which are valued daily based on volume-weighted median price data from eligible spot markets.
  2. Integrated Custody Solution: Unlike many competitors that use third-party custodians, FBTC utilizes Fidelity Digital Assets for its custody needs. The bitcoin is primarily stored in "cold storage," utilizing proprietary cyber and physical security protocols to minimize the risk of theft or loss.
  3. Standardized Reporting: The trust provides the same level of transparency and reporting as traditional equity investments, making it suitable for inclusion in IRAs, 401(k)s, and other tax-advantaged accounts where direct crypto ownership is often restricted.

Competitive Landscape

The market for spot bitcoin ETFs is highly competitive, with products differentiated primarily by expense ratios, brand trust, and liquidity. FBTC competes directly with the iShares Bitcoin Trust, which is currently the largest fund in the category. Other significant competitors include the ARK 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF. For investors seeking low-cost alternatives, the Franklin Bitcoin ETF and the Grayscale Bitcoin Mini Trust offer aggressive fee structures. Additionally, some investors compare the fund to futures-based products like the ProShares Bitcoin Strategy ETF or equity-based proxies like Strategy Inc (MicroStrategy).

Strategic Outlook and Innovation

The fund is positioned at the center of the ongoing institutionalization of digital assets. A primary strategic focus is the broadening of distribution channels, as more traditional wealth management platforms and retirement systems begin to allow model portfolio allocations to bitcoin. Innovation in the space is focused on enhancing the "collateralization" of ETF shares, allowing investors to use their holdings for lending or as margin in broader financial transactions. The fund also monitors the development of regulated options markets for spot ETFs, which would provide investors with advanced tools for income generation and downside protection. As the digital asset market matures, the fund aims to maintain its leadership through the scale of the Fidelity ecosystem and its commitment to lowering the technical barriers to crypto investing. By providing a secure and liquid entry point, FBTC seeks to establish bitcoin as a standard component of modern, diversified investment portfolios.