Fidelity's FBTC Self-Custody Pitch Has a Backup Plan Investors Weren't Told About

The FBTC prospectus describes a backup custody arrangement that Fidelity never put in the brochure. The fund's SEC registration statement contains backup custodian language that was not prominently disclosed in Fidelity's public marketing materials, first reported by Seeking Alpha. That pitch, first reported by Seeking Alpha as potentially understating the fund's actual structure, runs into language in the FBTC prospectus describing a backup custodian arrangement that never surfaced clearly in Fidelity's investor-facing materials. The backup custodian is BitGo. If the conditions are narrow and the backup custodian arrangement is tightly constrained, the alarm level drops significantly.