key takeaways:
- Fidelity, a major player on Wall Street, is anticipated to file its own application for a spot bitcoin ETF.
- A spot bitcoin ETF application from Fidelity was previously denied by the SEC in 2021.
In a significant development for the cryptocurrency industry, Fidelity Investments, one of the world’s largest asset managers, is preparing to submit a spot Bitcoin exchange-traded fund (ETF) filing.
The world’s largest asset management company Fidelity is almost ready to file its own application for a spot bitcoin exchange-traded fund, joining a lengthy list of issuers eager to launch such a product first.
According to a source familiar with the company’s plans, it may file its application as soon as Tuesday, following the example of the world’s largest asset manager BlackRock.
This move marks a significant milestone in the mainstream adoption of digital assets and has the potential to revolutionize the way investors access and engage with Bitcoin. In this article, we will delve into the details of Fidelity’s upcoming filing and explore the implications for the wider cryptocurrency market.
Fidelity’s pursuit of a spot Bitcoin ETF is not a recent development. In 2021, the company filed for a similar product called the Wise Origin Bitcoin Trust. However, the filing was rejected by the U.S. Securities and Exchange Commission (SEC) in early 2022.
The SEC has historically been cautious about approving Bitcoin ETFs due to concerns surrounding market manipulation and the lack of regulatory oversight in the cryptocurrency market.
In May 2022, Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota co-authored a letter addressed to Fidelity’s Chief Executive, Abigail Johnson.
The letter raised concerns and posed questions regarding Fidelity’s plan to allow investors to include Bitcoin in their 401(k) retirement accounts. In their joint letter, the senators referred to cryptocurrency investments as a “risky and speculative gamble.”
Following BlackRock’s filing for a Bitcoin ETF on June 15, other asset managers such as Invesco, WisdomTree, and Bitwise have also shown interest in launching their own spot Bitcoin funds.
This indicates a growing trend among traditional financial institutions to explore regulated cryptocurrency investment products. These asset managers are likely trying to address the SEC’s concerns and offer transparent and secure investment options to investors.
BlackRock, being one of the largest asset management companies in the world, has significant sway on both the stock market and the cryptocurrency industry. Because of the publicity around the filing, the value of Bitcoin and other cryptocurrencies rose, pushing BTC beyond $30,000 last week.
However, there is still a long way to go before an ETF is certified, let alone starts trading, so there is still time for the hype cycle to develop. With the break above $30,000, bitcoin doesn’t have many obstacles to overcome.
