8-K: Fidelity Bitcoin Fund Adds BitGo Custody, Names New Treasurer

Fidelity Wise Origin Bitcoin Fund enhances its risk management by adding BitGo as a second bitcoin custodian and announces a change in its Treasurer role.

Summary

• Fidelity Wise Origin Bitcoin Fund (the Trust) entered into a Custodial Services Agreement with BitGo Bank & Trust, N.A. (BitGo) on February 2, 2026.
• BitGo will provide services for the custody and safekeeping of the Trust's bitcoin holdings.
• The Trust's existing custody arrangement with Fidelity Digital Assets, N.A. (FDA) remains in force and is unaffected.
• FD Funds Management LLC, the sponsor, will determine the amounts held at either custodian and currently has no plans to move bitcoin to BitGo.
• The addition of BitGo is part of the Sponsor's ongoing risk management approach due to the Trust's growing size and expanding presence in digital assets.
• BitGo's fees will be paid by FD Funds Management LLC, the sponsor.
• Heather Bonner resigned as Treasurer (Principal Financial and Accounting Officer) of the Sponsor, effective February 2, 2026, a decision not related to disagreements.
• Craig S. Brown was appointed as the new Treasurer (Principal Financial and Accounting Officer) of the Sponsor, effective February 2, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively due to the proactive enhancement of risk management through dual custody, which strengthens the fund's operational resilience. The management change appears routine and non-disruptive.

Positives

• The addition of BitGo as a second custodian enhances the Trust's risk management framework, diversifying custodial risk for its growing bitcoin holdings.
• Maintaining the existing Fidelity Digital Assets custody arrangement alongside BitGo provides redundancy and flexibility.
• The management change for the Treasurer position is described as a routine resignation not stemming from any disagreements, suggesting stability in corporate governance.

Negatives

• BitGo's liability under the agreement is significantly limited, capping aggregate liability (excluding fraud, willful misconduct, or gross negligence) to fees paid in the preceding 3 months.
• BitGo's liability for gross negligence is limited to the value of the affected bitcoin, which could be less than the total loss in certain scenarios.
• BitGo is not liable for lost profits or any special, incidental, indirect, intangible, or consequential damages.
• The Trust is required to defend, indemnify, and hold harmless BitGo for claims arising from the Trust's use of services, breach of agreement, or violation of applicable law.

Risks

• Digital assets are not legal tender, are not backed by the government, and digital asset accounts are not subject to FDIC or SIPC protections.
• Legislative and regulatory changes at state, federal, or international levels may adversely affect the use, transfer, exchange, and value of digital assets.
• Transactions in digital assets may be irreversible, and losses due to fraudulent or accidental transactions may not be recoverable.
• The value of digital assets is highly volatile and unpredictable, potentially leading to significant loss over a short period.
• The nature of digital assets may lead to an increased risk of fraud or cyber attack.
• Technological difficulties experienced by the custodian or client may prevent access or use of a client's digital assets.
• Custodian does not control underlying software protocols for digital assets, which are subject to sudden changes (forks) that may materially affect value or function.
• Client is solely responsible for determining the appropriateness of any investment, investment strategy, or related transaction involving digital assets.

Future Outlook

The Sponsor's current intent is not to move any of the Trust's bitcoin to BitGo, but the addition reflects an ongoing risk management strategy for the Trust's anticipated growth and the Sponsor's expanding presence in the digital asset sector.

Management Comments

• The addition of BitGo reflects the Sponsor's ongoing risk management approach as part of the Trust's growing size and the Sponsor's expanding presence in the digital asset space.
• Heather Bonner's decision to resign was not the result of any disagreement relating to the Sponsor or the Funds operations, policies or practices.

Industry Context

StockSavvy.ai notes that the move to onboard a second, independent custodian like BitGo for a major Bitcoin ETF such as Fidelity Wise Origin Bitcoin Fund aligns with a broader industry trend towards enhanced security and diversified counterparty risk management in the rapidly evolving digital asset space. This strategy is becoming a best practice for institutional-grade crypto products, addressing investor concerns about single points of failure and operational resilience.

Comparison to Industry Standards

• The addition of a second custodian, BitGo, alongside Fidelity Digital Assets, positions Fidelity Wise Origin Bitcoin Fund favorably against industry standards for institutional digital asset custody.
• Many prominent Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust (IBIT) which primarily uses Coinbase Custody, rely on a single primary custodian. Fidelity's dual-custodian approach provides a more robust framework for asset protection, similar to how traditional financial institutions diversify their custodians for large-scale asset management.
• BitGo is a well-established institutional digital asset custodian, and its inclusion suggests a commitment to high-tier security infrastructure, comparable to the standards set by leading crypto-native custodians.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Benefit from enhanced security and diversified custodial risk, potentially increasing confidence in the fund's operational stability and asset protection.
• Management: The Sponsor (FD Funds Management LLC) gains increased flexibility and redundancy in managing the Trust's bitcoin holdings, supporting its 'expanding presence in the digital asset space'.

Next Steps

• The Sponsor will continue to exercise its sole discretion in determining the amounts of bitcoin held at either Fidelity Digital Assets or BitGo.
• BitGo will provide ongoing custodial services for the Trust's bitcoin holdings as per the agreement.

Key Dates

Recommendation

The filing details a positive, albeit routine, enhancement to the fund's operational risk management by adding a second custodian and a standard management change. These actions are generally viewed favorably for long-term stability but are unlikely to drive significant short-term price movements. Therefore, a 'hold' recommendation is appropriate for investors already in the fund, while new investors should consider broader market and asset-specific factors.

Keywords

Bitcoin ETF, Digital Asset Custody, Cryptocurrency, Risk Management, SEC Filing, Fidelity, BitGo, Custodial Services, Corporate Governance, Financial Reporting