Bitcoin ETFs are gaining momentum as more asset management giants join the race to launch the first spot bitcoin exchange-traded fund in the U.S. A source close to the situation has revealed that Fidelity Investments, a global leader in the financial industry, is planning to file its application for a bitcoin ETF that tracks the spot price of the cryptocurrency as early as today.
Fidelity is not the only firm eyeing this opportunity. BlackRock, Invesco, and WisdomTree have also filed for similar products in recent days, signaling a growing interest and confidence in the cryptocurrency space among Wall Street titans. However, none of these firms have received approval from the U.S. Securities and Exchange Commission (SEC) yet, which has been historically reluctant to greenlight such products due to concerns over market manipulation, volatility, and investor protection.
Fidelity has some advantages over its competitors, though. The firm has been involved in the cryptocurrency industry since 2014 when it launched its digital assets arm, Fidelity Digital Assets, which offers custody, trading, and other services for institutional clients.
Fidelity also launched a spot bitcoin ETF in Canada earlier this year, where several such products have already been approved and listed on stock exchanges. Fidelity’s experience and reputation could give it an edge in convincing the SEC to approve its U.S. filing.
Fidelity Is Eager to Ride the Bitcoin ETF Train
A spot Bitcoin exchange-traded fund (ETF) is reportedly in the works by the world’s third-largest asset management firm, according to Wu Blockchain. The firm, which has $4.2 trillion in assets under management (AUM), would join Blackrock in seeking approval for such a product. This is not the first time the firm has ventured into the crypto space, as it previously co-launched EDX Markets, a non-custodial crypto exchange.
Wall Street titan Fidelity is expected to submit its own filing for a spot bitcoin ETF, a source tells The Block.
BlackRock's June 15 filing has been followed by other asset managers looking to launch their own spot bitcoin funds including Invesco, WisdomTree and Bitwise.…
— Wu Blockchain (@WuBlockchain) June 27, 2023
The firm has also shown interest in exploring the Metaverse, as it filed for three trademark applications for services related to the virtual world in December 2022. The Bitcoin price could benefit from this news and potentially rally above $31,000 once the Bitcoin ETF filing is officially confirmed.
If Fidelity or any other firm succeeds in launching a spot Bitcoin ETF in the U.S., it could have a significant impact on the cryptocurrency market and the broader financial system. A spot bitcoin ETF would provide a regulated and transparent way for investors to access the cryptocurrency, potentially attracting more capital and adoption. It could also boost the price of Bitcoin, as more demand would increase the scarcity and value of the limited supply of coins.
