Fidelity Ventures Into Bitcoin ETF Race, Sets Sights on Second Attempt
Fidelity Investments is gearing up to make its mark in the race for a Bitcoin spot exchange-traded fund (ETF), according to a source familiar with the company’s plans. Fidelity, joining a growing list of issuers vying for the first spot Bitcoin ETF, is expected to submit its filing as early as Tuesday, closely following in the footsteps of asset management giant BlackRock.
Fidelity’s previous endeavor in this space came in 2021 when it filed for a Bitcoin spot ETF called the Wise Origin Bitcoin Trust. However, its application was rejected by the U.S. Securities and Exchange Commission (SEC) in early 2022. Undeterred, Fidelity is now preparing for a fresh attempt to secure approval and enter the highly anticipated Bitcoin ETF market.
The launch of a spot bitcoin ETF has generated significant excitement among market observers, as it would offer investors a convenient avenue to gain exposure to the cryptocurrency without the complexities associated with owning and managing the underlying asset. BlackRock’s recent filing, in particular, has drawn attention due to the firm’s stature and influence in global markets. Many analysts see this move as a bullish sign for the long-term outlook of digital assets.
Yassine Elmandjra, an analyst at Ark, highlighted the significance of BlackRock’s decision, stating,
“BlackRock’s decision to file for a Bitcoin ETF signals that large institutional players are positive on the long-term outlook for the digital asset.”
Invesco, another top Investment management firm, recently reapplied for Bitcoin ETF.
Fidelity, with its substantial presence in the financial industry, adds further weight to the growing interest in Bitcoin ETFs. The company boasts tens of millions of retail brokerage clients and administers over $11 trillion in assets. Additionally, Fidelity has been actively involved in the cryptocurrency space since 2018, operating an institutional custody and trading services business. Since February 2022, the firm has also been offering fund products to its European clients through Fidelity International.
While Fidelity declined to comment on its imminent filing, industry watchers eagerly anticipate its entrance into the bitcoin ETF race. The potential approval of Fidelity’s ETF could further legitimize and catalyze the adoption of cryptocurrencies among mainstream investors, paving the way for a new era of financial products linked to digital assets.