Fidelity Renews Interest With Fresh Proposal for Spot Bitcoin ETF

Jimmy Aki
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Asset management giant, Fidelity Investment, has refiled a new proposal to offer the first United States spot Bitcoin exchange-traded fund (ETF).

Fidelity SEC Proposal: A Reawakening of Traditional Finance?

Fidelity became the latest traditional finance service to enter the race to list and trade spot Bitcoin ETF under its Wise Origin Bitcoin Trust name.

The filing document directed to the Securities and Exchange Commission (SEC) marks Fidelity’s second attempt for a Bitcoin ETF, previously denied by the SEC in early 2022.

Fidelity Investment is one of the biggest asset managers and industry-leading traditional finance heavyweights that have applied to list Bitcoin ETFs in the last few weeks.

Recall that BlackRock Inc. overtook headlines when it sent an application to SEC for a spot Bitcoin ETF. Financial analysts believe this opened a gateway for other traditional finance firms to take a shot.

VanEck, Wisdom Tree, Bitwise, Valkyrie, and Invesco are amongst a list of 30 asset managers that have reportedly submitted paperwork proposals for spot Bitcoin ETFs on CBOE, Nasdaq, and NYSE Arca Global Markets, owned by International Exchange.

While the spate of filings may indicate a new era and holistic reawakening of traditional finance firms’ influence on diverse markets, there are doubts over the SEC’s approval of these applications.

It is noteworthy that the SEC has rejected dozens of spot Bitcoin ETF applications in the past, citing reasons that border on low application standards.

The agency also reiterated that it plans to maintain high standards to prevent frauds and manipulative practices geared towards the overall welfare of protecting investors and public interest.

Regulatory Clampdown May Affect Bitcoin ETF’s Applications

Financial market observers believe the submission of paperwork comes at a very crucial time.

This is due to the SEC’s ongoing regulatory crackdown weighing on all crypto sector players, including exchange giants like Binance and Coinbase.

On June 5th, the regulatory body filed a lawsuit against Binance. The lawsuit alleges an alleged breach of entities, as trades based in the U.S. could access digital assets on the main platform.

Additionally, the lawsuit raises concerns about the deceptive control of the Binance.U.S entity behind the scenes.

In less than 24 hours, Coinbase was also slammed with litigation by the agency over its alleged operation as an unregistered securities exchange.

Although the exchanges denied these charges, it remains clear that SEC’s whirlwind may know no bounds as it claims to maintain policy-controlled financial markets.

However, some analysts remain bullish on the prospect of BlackRock’s Bitcoin ETF approval.

This stems from its integration of a surveillance and transparent sharing agreement with an undisclosed exchange based in the U.S.

$BTC Price Rallies Amid News of Fresh Proposals

Bitcoin ($BTC), the world’s leading crypto asset by trading volume, had struggled to gain price momentum.

This is due to a series of negative crypto events, including the crash of the FTX exchange in late 2022 and the recent collapse of crypto-centric investment firms like Silver Gate and Silicon Valley Bank.

However, the spate of filling has permeated global crypto communities as the excitement grows over the prospect of cryptocurrency becoming easily accessible for everyone.

The price of $BTC has recorded a significant uptrend as it moved from its previous price mark of $26,000 to $31,000 on June 23rd.

fidelity 6/30/23

At press time, the crypto asset is trading at $30,000, which is 56.42% below its all-time high of $68,789 recorded in November 2021.

Nevertheless, there is room for a potential bullish sentiment if Fidelity Investment, BlackRock, and other traditional finance giants spot Bitcoin ETF application is approved by SEC.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.