Fidelity, one of the largest asset managers in the world, is reportedly preparing to submit its filing for a spot Bitcoin (BTC) exchange-traded fund (ETF).
According to an anonymous source cited by The Block, the filing could be submitted as early as Tuesday. This move would put Fidelity in the growing race to launch a spot Bitcoin ETF, which was triggered by BlackRock’s filing earlier this month.
Bitcoin ETF Race Heats Up Amidst Growing Institutional Interest
Fidelity’s interest in a spot BTC ETF is not new. The company filed for a similar product, the Wise Origin Bitcoin Trust, in 2021, but it was denied by the United States Securities and Exchange Commission (SEC) in early 2022.
The SEC has been hesitant to approve BTC ETFs in the past, citing concerns about market manipulation and lack of regulation in the cryptocurrency market.
However, the recent surge in interest from large asset managers like Fidelity and BlackRock suggests that the demand for such a product is growing, and could potentially lead to a shift in the SEC’s stance. Other asset managers, including Invesco, WisdomTree, and Bitwise, have also filed for spot bitcoin ETFs in recent weeks.
If approved, a spot BTC ETF would allow investors to gain exposure to Bitcoin without having to purchase the cryptocurrency directly. Instead, they would be able to buy and sell shares of the ETF on a regulated exchange like the New York Stock Exchange.
For now, it remains to be seen whether the SEC will approve any of the pending filings for spot bitcoin ETFs, but the growing interest from large asset managers suggests that the demand for such a product is only increasing.
At the time of writing, Bitcoin, the largest cryptocurrency in the market, is trading at $30,800 and has recorded a gain of 1.3% over the past 24 hours. It is uncertain whether Bitcoin will be able to break through its nearest resistance level at $31,500, or if it will enter another prolonged period of consolidation before making a significant move in either direction.
Featured image from Unsplash, chart from TradingView.com
