Fidelity Investment’s Initial Spot BTC ETF Application

Massachusetts-headquartered multinational financial services corporation, Fidelity Investments, has officially submitted an application to the United States Securities and Exchange Commission (SEC) for a Bitcoin Exchange Traded Fund (ETF) called Wise Origin Bitcoin Trust. This move comes after much anticipation and speculation from the public. The filing also noted the inclusion of a surveillance sharing agreement with an undisclosed U.S. platform specializing in spot-based bitcoin trading.

Fidelity Investments Initial Spot BTC ETF Application

It is worth noting that Fidelity had previously submitted an application for the same offering during a private meeting with the U.S. regulator. However, their request encountered obstacles and was not approved.

During that time, Tom Jessop, the President of Fidelity Digital Assets, presented several reasons to convince the SEC to approve the Bitcoin derivative product. Among these reasons, he emphasized the growing number of Bitcoin holders and the increasing investor interest in digital assets. He also pointed out the approval of Bitcoin ETFs in other countries. Despite these arguments, the SEC did not show willingness to approve the application at that particular time.

BlackRocks Spot BTC ETF Applications Stirs Others

Following the rejection of the previous application last year, there was a period of silence regarding any potential reapplication. However, this changed two weeks ago when BlackRock, a prominent investment asset management firm, unexpectedly filed for its own spot Bitcoin ETF, called iShares Bitcoin Trust. The timing of BlackRock's application was particularly surprising as it coincided with increased regulatory scrutiny of cryptocurrency entities in the United States. Notably, leading digital asset service providers, Binance and Coinbase, had recently faced separate regulatory challenges from the SEC.

The filing by BlackRock for a spot BTC ETF not only caught the crypto industry off guard but also sparked a renewed sense of hope. As a result, other asset managers saw this as an opportunity to either submit new applications or reapply for similar BTC derivative products. WisdomTree, a U.S. asset management firm, decided to reapply for its spot Bitcoin ETF, known as the 'WisdomTree Bitcoin Trust'.

Overall, the unexpected move by BlackRock and the subsequent actions of other asset managers signify a potential shift in sentiment and a reinvigorated interest in obtaining approval for spot Bitcoin ETFs.

In a notable turn of events, Invesco, following two years of rejection, decided to refile its application for a spot Bitcoin ETF. Joining the momentum, Valkyrie and Bitwise also followed suit by submitting their respective applications.

It is worth mentioning that, up to this point, the United States Securities and Exchange Commission (SEC) has not granted approval for any spot BTC ETF. However, ongoing speculations suggest that this could be the opportune moment for approval, especially considering the possibility of Grayscale winning its lawsuit against the regulator for the rejection of its BTC ETF request.