Fidelity Investments, one of the world's largest asset managers, has filed an application with the US Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF).
Fidelity; BlackRock joins other firms like VanEck, WisdomTree, NYDIG, and Valkyrie, becoming the latest to join the race to launch a spot Bitcoin ETF in the US. The Spot BTC ETF will give investors exposure to the real price of bitcoin, rather than futures contracts or other derivatives.
However, the SEC has so far not approved any spot bitcoin ETFs, citing concerns about market manipulation, fraud, and investor protection. The regulator has delayed its decisions on several bitcoin ETF applications and sought public comments on the potential benefits and risks of such products.
The SEC rejected a spot Bitcoin ETF application filed by Fidelity on January 27, 2022. It was rumored a few days ago that Fidelity would make the same application again. Thus, Fidelity joined in the spotlight ETF application in the footsteps of BlackRock.
Not surprisingly, following BlackRock's application, Fidelity updated its application to include surveillance language to satisfy regulators.
*Not investment advice.