Fidelity Officially Submits Its Spot Bitcoin ETF Application
Fidelity has joined other US companies to resubmit its application for a Bitcoin spot exchange-traded fund (ETF) called Wise Origin Bitcoin Trust. The asset management giant officially filed its paperwork for the spot Bi...
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Fidelity has joined other US companies to resubmit its application for a Bitcoin spot exchange-traded fund (ETF) called Wise Origin Bitcoin Trust. The asset management giant officially filed its paperwork for the spot Bitcoin ETF with the Securities and Exchange Commission (SEC) yesterday (Thursday).
A US Spot Bitcoin ETF
The application of Boston-headquartered Fidelity came only two weeks after its rival Blackrock filed for the approval of a spot Bitcoin ETF. Blackrock’s application also encouraged other firms, including Invesco and WisdomTree, to seek the SEC’s approval for the much-anticipated crypto investment instrument. Unlike Blackrock, all these companies filed for permission for a spot Bitcoin ETF, but their application was rejected.
Fidelity, a company with $4.5 trillion in assets under management (AUM), originally applied for its spot Bitcoin ETF in 2021 when the retail sentiment in the crypto market was high. However, the SEC rejected Fidility’s application in 2022, which came a couple of months after Fidelity successfully launched a spot Bitcoin ETF in Canada.
Bringing Bitcoin to Mass Investors
An instrument like spot Bitcoin ETF will be listed on American stock exchanges, and retail investors can easily invest in the cryptocurrency from their brokerage accounts. It would eliminate the hassle of creating a separate crypto exchange account, setting up wallets, and other complex processes.
In the latest reapplication, Fidelity included a ‘surveillance sharing agreement’ with an unnamed US spot-based Bitcoin trading platform. This would eliminate the SEC’s concerns over market manipulation.
Though the SEC was reluctant to approve spot Bitcoin ETFs, the interest of Blackrock in the segment this time has raised hope. With over $10 trillion in AUM, BlackRock is the largest asset manager in the US. It has a significant influence in the financial services industry and also political backing, many media reports highlighted. Further, the market is optimistic about BlackRock’s position, and speculations are mounting that its spot Bitcoin ETF will be approved. However, the SEC is yet to come up with anything official.
Joe Carlasare asks Elliot Johnson why the SEC has not approved a spot Bitcoin ETF pic.twitter.com/LMIheNLFFf
— Swan (@Swan) June 28, 2023 This article was written by Arnab Shome at www.financemagnates.com.Why this matters
This bitcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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