Fidelity Investments, the financial services giant with $4.5 trillion under management, has officially re-filed its application for a spot Bitcoin Exchange-Traded Fund (ETF). This move follows the Securities and Exchange Commission’s (SEC) call for more clarity in applications.
In line with the SEC’s demand, Fidelity named Coinbase as its exchange partner in its re-filed application. This comes as part of a broader industry response, with asset management firms VanEck, WisdomTree, and Invesco also re-submitting their applications for Bitcoin ETFs with similar amendments.
This surge of filings intensifies the pressure on the SEC, with the financial industry showing increasing willingness to conform to the SEC’s stringent demands to foster cryptocurrency integration into mainstream finance.
Echoing the BlackRock filing, Fidelity’s newly submitted paperwork includes a “surveillance sharing agreement” with an undisclosed U.S. spot-based Bitcoin trading platform. The intention behind this agreement is to alleviate the SEC’s apprehensions about potential market manipulation, a frequently cited concern by the regulatory body in discussions about the approval of Bitcoin ETFs.
Fidelity’s application pointed out the risks that crypto investors have recently faced due to the insolvency of several custodians and centralized exchanges. The company argued that access to a financial instrument like a spot Bitcoin ETF would have provided protection to “countless investors.”
These revisions to the Bitcoin ETF applications indicate an industry-wide push to meet the SEC’s requirements, even as the regulator has yet to announce any decisions on these newly revised applications.
Spot Bitcoin ETFs, if approved, could offer a crucial turning point for the industry. They would enable broader institutional access to Bitcoin and would allow investors to trade Bitcoin with the same ease as stocks. This could help cryptocurrencies become mainstream investment options and would mark a significant milestone for the digital currency industry.
However, the ball is now in the SEC’s court. The regulator’s decision will not only impact the firms involved but also the broader trajectory of digital asset integration into conventional finance. As the financial industry watches with bated breath, the SEC’s responses to these updated filings will set the tone for the future of Bitcoin ETFs and potentially cryptocurrencies at large.
