Fidelity Investments, a leading asset management firm with over $4 trillion under management, has made a key update to its proposal for a spot Bitcoin Exchange Traded Fund (ETF).
The amendment, filed with the US Securities and Exchange Commission (SEC) on Tuesday, aims to address regulatory concerns and provide essential details on Bitcoin custody and other aspects.
The proposal, called the “Wise Origin Bitcoin Trust,” joins a growing wave of Bitcoin ETF applicants, including BlackRock, Invesco and Ark Invest.
This update is presented at a time when the financial community is attentive to the possible approval of these financial products in the United States market.
The amendment provides detailed information on how Fidelity will secure its clients’ Bitcoin custodial accounts, which is essential to ensure the security of the digital assets in the ETF.
Additionally, it addresses risks related to regulatory uncertainty, handling of potential hard forks in the Bitcoin network, pricing sources, and compliance with generally accepted accounting principles (GAAP).
This effort by Fidelity joins similar moves by other financial companies that have also modified their Bitcoin ETF filings.
This change could be indicative of a possible change in approach by the SEC, which has historically been reluctant to approve these products due to concerns of market manipulation and insufficient investor protections.
Interest in the approval of a Bitcoin ETF in the US has been increasing
The rumored approval of BlackRock’s proposed Bitcoin ETF led to a rise in the price of Bitcoin to over $29,000, demonstrating investor appetite for the arrival of a new Bitcoin ETF in the US market.
Analysts have raised the odds of a Bitcoin spot ETF approval to 90%, which could have a significant impact on the cryptocurrency market capitalization in the coming months.
The changes in ETF applications and the possible change of attitude of the SEC are generating growing optimism regarding the approval of these financial products in the US.