Fidelity To File For Spot Bitcoin ETF• June 27, 2023 10:22 pm • Comments
It looks like Fidelity is now also joining the race to get a spot Bitcoin ETF approved along with other major firms such as BlackRock and WisdomTree,
Fidelity currently manages around $4.2 trillion in assets and is part of a wave of firms that have decided to follow BlackRock’s move to get an ETF approved.
This is quite interesting because the SEC has never once approved a spot Bitcoin ETF in its history so this amount of pressure coming from some of the largest firms may finally cause the SEC to give in.
In the past, the SEC has only approved future ETFs which has severely limited the amount of capital that could flow into the crypto industry.
If spot crypto ETFs finally get approved, it is not an understatement to say that this could kickstart the next crypto bull run.
— Documenting ₿itcoin 📄 (@DocumentingBTC) June 27, 2023
The report notes that the asset manager is set to join the list of issuers, and could submit the filing as soon as Tuesday. Moreover, fellow asset management giant BlackRock submitted its filing on June 15th, with Fidelity now one of the largest firms to follow suit.
The finance world was shocked when BlackRock reportedly submitted the necessary filing for a spot Bitcoin ETF. Alternatively, the entire digital asset industry was pleasantly surprised, with the price of the asset seeing a surge in response. Now, another asset management behemoth is following suit.
Specifically, $4.2 trillion asset manager, Fidelity, is reportedly set to file for a spot Bitcoin ETF, according to sources’ statements to The Block.
Additionally, the report noted that this is the asset management firm’s second attempt at the offer. Following a 2021 filing that was called the Wise Origin Bitcoin Trust. However, that was denied by the US Securities and Exchange Commission (SEC) in 2022.
So far, Fidelity has not yet publicly commented on its recent filing, but it is clear that it could possibly be competing against BlackRock to get an ETF approved first.
The fact that the largest asset management firms are doing this also indicates that there is strong demand from institutional clients.
This is despite the fact that the regulatory environment right now is targeting the crypto industry which may slow down growth.
On the other hand, this gives investors an opportunity to accumulate more assets and later be rewarded when the regulatory environment does improve in the future.
The moment that a Bitcoin ETF is finally approved will indicate a new milestone that the industry has achieved and will likely be a huge turning point.
🚨🚨 Probably Nothing! World's second largest Asset Manager is filing for spot Bitcoin ETF! 🥳🚀📈
— Seth (@seth_fin) June 27, 2023
The news prompted the price of bitcoin to rise from $30,600 to $31,000 in the space of a few minutes, though that quickly reversed, with the crypto trading back to $30,500 at press time, according to CoinDesk data.
“We are not able to confirm or share an update,” a Fidelity Investments spokesperson said in a statement to CoinDesk.
Fidelity previously applied for a spot bitcoin ETF in 2021, but its filing was rejected by the U.S. Securities and Exchange Commission (SEC) in 2022.
Earlier in June, fellow asset management giant BlackRock set off a flurry of spot bitcoin ETF filings and re-filings – not to mention a sizable rally in the bitcoin price – when its iShares unit submitted an application to the SEC for its own such fund.
Bitcoin saw a mid-morning price surge after reports emerged that asset management giant Fidelity was preparing to file for a spot bitcoin ETF as soon as Tuesday. $BTC@LedesmaLyllah reportshttps://t.co/uvgGaBNYET
— CoinDesk (@CoinDesk) June 27, 2023
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