Once the investment giant Fidelity files for a spot Bitcoin ETF with the US SEC, it will be the second time following the dismissal of the first one two years ago.
The heightened Bitcoin demand by institutional investors has pushed asset investment firms to file for an exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). Already BlackRock Inc (NYSE: BLK), Bitwise, Invesco, and WisdomTree have filed a Bitcoin ETF with the US SEC in order to expose their institutional customers to digital asset classes. While the United States crypto firms wait for the judicial system to offer crypto regulatory clarity, financial firms like Fidelity Investments understand timing is the most important in the digital asset market.
Moreover, Fidelity Investments has a Bitcoin ETF up and running in Toronto, Canada dubbed Fidelity Advantage Bitcoin ETF with a ticker symbol FBTC. According to the latest market data, FBTC closed Tuesday trading at $13.56, up approximately 1.57 percent from the day’s opening price.
Fidelity Investments Wants a US-Based Spot Bitcoin ETF
According to a report by people familiar with the company’s plans, Fidelity is very close to filing a spot Bitcoin ETF with the United States SEC. The company could submit the request to the SEC as early as Tuesday. If the company makes the effort to file for a spot Bitcoin ETF soon, then it will be the second time that the company has made a similar move.
In March 2021, Fidelity Investments submitted a Bitcoin ETF filing with the United States SEC dubbed Wise Origin Bitcoin ETF. The filing was later rejected by the SEC and the current chair, Gary Gensler, argues that Bitcoin price is prone to heavy manipulation and lacks basic investor protection.
With Bitcoin being a globally traded digital asset, the United States SEC has little it can do to control the underlying value. Moreover, the difference between demand and supply significantly determines Bitcoin prices.
Market Outlook
The entrance of Fidelity Investments with more than $4.2 trillion in AUM into the crypto market is a clear indication the digital industry is on the cusp of mainstream adoption. According to a recent study conducted by Triple-A, there are at least 420 million crypto asset holders and users in the world right now with Asia accounting for the largest share.
The slow growth of the traditional stock market and the rising inflation has most asset managers seeking alternative risky investments. Moreover, the crypto market has enjoyed global liquidity and a four-year cycle of bullish sentiment.
Currently, Fidelity has a crypto industry digital payments ETF running in North America. Trading around $18.77 on Wednesday, the Fidelity crypto industry ETF tracks top crypto companies like Coinbase Global Inc (NASDAQ: COIN), Riot Platforms Inc (NASDAQ: RIOT), and Marathon Digital Holdings Inc (NASDAQ: MARA).
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