Fidelity poised to file application for Spot Bitcoin ETF

Fidelity Investments, one of the largest asset managers, is reportedly nearing the submission of its filing for a spot bitcoin exchange-traded fund (ETF), according to a report from The Block citing a reliable source.

The filing, anticipated to be submitted as early as today, would make Fidelity the second major asset manager to file an ETF application in recent days. BlackRock, another prominent player, filed for a similar ETF earlier this month.

These filings are seen as a positive sign for the cryptocurrency industry, revitalizing retail interest that had waned after regulatory scrutiny on exchanges such as Binance and Coinbase from the U.S. Securities and Exchange Commission.

BlackRock’s application alone caused a surge in the price of bitcoin, pushing it to a one-year high. As of today, bitcoin is up 2.2%.

A spot bitcoin ETF is an investment vehicle that allows public trading and tracks the price of bitcoin, providing investors with exposure to the asset class. In contrast, futures-based bitcoin ETFs track the price of bitcoin futures contracts and have received relatively more positive reception from the SEC.

Fidelity has previously attempted to enter the crypto ETF space by filing for a spot bitcoin ETF in 2021. However, the proposal was rejected by the SEC, which cited concerns about preventing fraudulent and manipulative practices as the reason for denial.

SEC Chair Gary Gensler has gained a reputation among industry players as being tough on crypto companies. The regulatory body is currently embroiled in a legal dispute with Grayscale Investments, which sued the SEC last year after its application to convert its flagship spot Grayscale Bitcoin Trust into an ETF was rejected.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you