Fidelity Investments, a prominent asset manager, has taken a step forward in its pursuit of a spot Bitcoin exchange-traded fund (ETF).
As disclosed in a filing by Cboe BZX Exchange with the United States Securities and Exchange Commission (SEC) on June 19, Fidelity has submitted an application for the ETF.
This move by Fidelity follows a series of similar applications made by other financial giants.
BlackRock, WisdomTree, Invesco, and Valkyrie had all submitted their respective spot Bitcoin ETF applications in the preceding days, with BlackRock initiating the trend on June 15.
According to Bloomberg, a total of seven spot Bitcoin ETF applications have been filed this year. Notably, Fidelity, WisdomTree, and Invesco are making a second attempt at securing approval for their spot BTC ETFs.
The applications submitted for the spot Bitcoin ETFs emphasize the significance of the regulated CME Bitcoin Futures market as it pertains to the spot Bitcoin market.
Fidelity’s application, much like others, argued extensively on this point and supported its claim with thorough research.
In its 193-page application, Fidelity stated, “The lack of a Spot Bitcoin ETP exposes U.S. investor assets to significant risk because investors that would otherwise seek crypto asset exposure through a Spot Bitcoin ETP are forced to find alternative exposure through generally riskier means.”
It also highlighted past instances, such as the cases of FTX, Celsius, BlockFi, and Voyager Digital, where investors had resorted to riskier alternatives due to the absence of a spot Bitcoin ETP.
Fidelity Digital Assets Services, a regulated custodian licensed by the New York Department of Financial Services, would be entrusted with the custody of the trust’s Bitcoin.
Furthermore, Cboe BZX Exchange announced its intent to establish a surveillance-sharing agreement with a United States-based cryptocurrency exchange.
It’s worth noting that the SEC is yet to approve any of the applications for a spot Bitcoin ETF. Fidelity’s filing, using the 19b-4 form, revealed that the firm is reviving its Wise Origin Bitcoin Trust product, which was initially submitted for approval in March 2021.
Unfortunately, the previous application was rejected despite two deliberation extensions.
With approximately $11 trillion in assets under administration, Fidelity Investments holds significant clout in the financial industry.
If approved, its spot Bitcoin ETF would provide investors with a regulated and more accessible avenue for exposure to Bitcoin, reducing the need for riskier alternatives.
However, the ultimate decision rests with the SEC, and the market awaits their verdict on these applications.
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