Fidelity reapplies for spot Bitcoin ETF despite 2022 rejection

CryptoSlate
CryptoSlate

29 Jun 2023 6:29 PM

Fidelity has refiled its spot Bitcoin ETF application, joining the rush of institutional investors following in BlackRock's footsteps....

  • Fidelity Investments has refiled its application for a spot Bitcoin exchange-traded fund (ETF) called Wise Origin Bitcoin Trust.
  • The initial application was rejected by the SEC in January 2022, along with other spot Bitcoin ETF applications.
  • BlackRock's spot Bitcoin ETF application has sparked a wave of institutional interest, leading to several re-applications.
  • Currently, there are nine pending applications for a spot Bitcoin ETF with the SEC, including those from Ark Invest, 21Shares, Bitwise, WisdomTree, Invesco, Valkyrie, and VanEck.
  • All previous applications, except for BlackRock's, have been denied by the SEC in the past two years.
  • The SEC has expressed concerns about market manipulation and the lack of sufficient safeguards in spot Bitcoin ETFs.
  • BlackRock's application stands out due to a surveillance agreement that allows for monitoring of trading activity by NASDAQ.
  • The Grayscale vs. SEC case has raised questions about the SEC's reasoning regarding Bitcoin ETFs based on futures contracts.

The sentiment of the article is primarily neutral, discussing the reapplication of Fidelity Investments for a spot Bitcoin ETF and the current landscape of Bitcoin ETF applications with the SEC. There is mention of optimism regarding BlackRock's application, but overall, the article presents a balanced view of the situation.

Go to publisher site

You May Ask

Which company recently refiled its application for a spot Bitcoin ETF?When was Fidelity Investments' initial application rejected by the SEC?How many pending applications for a spot Bitcoin ETF are currently with the SEC?What differentiating factor does BlackRock's application have compared to others?What concerns does the SEC have regarding spot Bitcoin ETFs?Note: The answers to these questions can be found in the summary section of the analysis.

Suggested Reads