Fidelity joins the race for the first approved spot Bitcoin exchange-traded fund (ETF) in the US.
In a renewed commitment to secure a Bitcoin exchange-traded fund (ETF), Fidelity Investments has now entered the scene, according to a Cboe BZX Exchange's recent filing with the United States Securities and Exchange Commission (SEC).
The submission was made on June 19th, marking Fidelity as the latest asset manager to pursue this endeavor.
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Fidelity's recent move adds its name to an increasing list of contenders. In the past week, BlackRock, WisdomTree, Invesco, and Valkyrie all submitted their applications for the highly sought-after spot Bitcoin ETF.
Fidelity's application, a hefty 193-page document, provides deep insights on the lack of spot Bitcoin ETFs offered to US investors, stating:
The lack of a Spot Bitcoin ETP <exchange-traded product> exposes US investor assets to significant risk because investors that would otherwise seek crypto asset exposure through a Spot Bitcoin ETP are forced to find alternative exposure through generally riskier means.
In addition to presenting its argument, the application points towards now-defunct entities such as FTX, Celsius, BlockFi, and Voyager Digital as examples of riskier past alternatives.
It further suggests that investors have resorted to acquiring shares in unrelated businesses like Tesla and MicroStrategy, which carry significant BTC investments, to obtain indirect BTC exposure.
Should the application get the green light, the spot BTC ETF would be overseen by Fidelity Digital Assets Services, a custodian authorized by the New York Department of Financial Services. Cboe BZX plans to form a surveillance-sharing agreement with a US-based cryptocurrency exchange in a bid to bolster security.
As per Bloomberg's records, this year has seen seven firms put their hats in the ring for the spot Bitcoin ETF approval. Fidelity, alongside WisdomTree and Invesco, isn't new to the game. This is their second attempt to secure the spot BTC ETF.
However, it is worth noting that the SEC has yet to approve any spot BTC ETF application.
Fidelity's reentry into the race for a spot BTC ETF approval serves as a reminder of the continuous yet unsuccessful attempts by different firms in this sector. The constant interest by major financial institutions signifies the growing acknowledgment of digital currencies' potential in the financial landscape.
