Fidelity Investments, an asset manager, has submitted an application for a spot bitcoin exchange-traded fund (ETF), as stated in a filing by Cboe BZX Exchange with the US Securities and Exchange Commission (SEC) on June 19. This move follows similar applications from BlackRock, WisdomTree, Invesco, and Valkyrie in the preceding days. In total, there have been seven spot bitcoin ETF applications filed this year. Fidelity had previously attempted to launch a spot BTC ETF and, like others, emphasizes the ne ed for such a product to protect US investors' assets.
The filing highlights the significance of the CME Bitcoin futures market as a regulated and substantial segment related to the spot bitcoin market. Fidelity supports this argument with extensive research, advocating that the lack of spot bitcoin exchange-traded products (ETPs) puts investors at risk and forces them to seek riskier alternatives. It mentions bankruptcies of FTX, Celsius, BlockFi, and Voyager Digital as examples of such alternatives. The filing also suggests that investors may purchase shares in unrelated companies like Tesla and MicroStrategy, w which hold significant Bitcoin investments, As an indirect way to gain exposure to Bitcoin.
Fidelity Digital Assets Services, a regulated custodian licensed by the New York Department of Financial Services, will be responsible for the custody of the trust's BTC. Additionally, Cboe BZX has committed to establishing a surveillance sharing agreement with a US cryptocurrency exchange. While the SEC has yet to approve a spot bitcoin ETF application, Fidelity's filing indicates that it is reviving its Wise Origin Bitcoin Trust product, which was initially filed in March 2021 but faced rejection after two deferred considerations. Fidelity manages approximately ly $11 trillion in assets, highlighting its prominence in the financial industry.
