Fidelity Investments, an asset manager with approximately $11 trillion in assets under administration, has filed an application for a spot Bitcoin exchange-traded fund (ETF). The filing was made by Cboe BZX Exchange with the United States Securities and Exchange Commission (SEC) on June 19. Fidelity’s application comes after BlackRock filed its spot Bitcoin ETF application on June 15, followed by WisdomTree, Invesco, and Valkyrie in the subsequent days.
According to Bloomberg, a total of seven spot Bitcoin ETF applications have been filed this year. Fidelity, similar to WisdomTree and Invesco, is making a second attempt at securing approval for a spot BTC ETF. The application argues that the CME Bitcoin Futures market represents a significant regulated market size in relation to the spot Bitcoin market. It supports this point with extensive research, emphasizing the risks faced by U.S. investors in the absence of a spot Bitcoin ETF.
The application suggests that without a spot Bitcoin ETF, investors are compelled to seek alternative exposure through riskier means. It mentions past examples such as FTX, Celsius, BlockFi, and Voyager Digital as riskier alternatives. The document also highlights the possibility of investors buying shares in unrelated companies like Tesla and MicroStrategy, which have significant Bitcoin investments, to gain exposure to BTC.
If approved, Fidelity Digital Assets Services, a regulated custodian licensed by the New York Department of Financial Services, would be responsible for the custody of the trust’s Bitcoin. Cboe BZX has indicated that it would enter into a surveillance-sharing agreement with a U.S.-based cryptocurrency exchange.
It’s worth noting that the SEC has not yet approved any spot Bitcoin ETF applications. Fidelity’s filing indicates that the company is reviving its Wise Origin Bitcoin Trust product, which had its initial application filed in March 2021 but was ultimately rejected after two rounds of deliberations.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up