Fidelity Joins BlackRock in Bitcoin ETF Race
Fidelity, a prominent asset management company, is nearing the completion of its filing for a Bitcoin exchange-traded fund (ETF), as per a report by the Block citing an insider.
According to the report, the filing is expected to be submitted on Tuesday, making Fidelity the second major asset manager in recent times to seek approval for an ETF.
In similar news, BlackRock recently submitted its application for a comparable ETF earlier this month.
These filings are seen as a positive sign for the cryptocurrency industry, boosting retail interest after two leading exchanges, Binance and Coinbase Global, faced scrutiny from the U.S. Securities and Exchange Commission.
BlackRock’s application significantly impacted Bitcoin’s price, driving it to a one-year high. At the time of writing BTC is trading at $30,600 after a 14% surge in the past week.
A spot Bitcoin ETF is a publicly-traded investment product that mirrors the price movements of Bitcoin, providing investors with exposure to this asset class. Conversely, futures-based Bitcoin ETFs, which track the price of Bitcoin futures contracts, have been more favorably received by the SEC.
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Fidelity had previously ventured into the crypto ETF market, but the SEC rejected its proposal for a spot Bitcoin ETF in 2021 due to concerns about fraudulent and manipulative practices.
Gary Gensler, the chair of the SEC, has earned a reputation among industry players for his strict stance on crypto companies, often seen as the “bad cop.”
The SEC is also embroiled in a dispute with Grayscale Investment, which sued the regulatory body after its application to convert the flagship spot Grayscale Bitcoin Trust (GBTC.PK) into an ETF was rejected in June last year.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
