Fidelity Officially Enters The Competition For Spot Bitcoin ETFs Through A Newly Submitted Filing To The SEC

Fidelity Investments, a prominent financial services giant with a vast customer base and approximately $4.2 Trillion in assets under administration, has entered the competition to launch the inaugural US exchange-traded fund focused on Bitcoin.

The Boston-headquartered asset management firm recently resubmitted the application for the Wise Origin Bitcoin Trust, as disclosed in a document filed on Thursday (Friday AEST) with the US Securities and Exchange Commission.

There were reports and rumours yesterday that Fidelity had filed another application, which we did an article on here, however now it is official.

Following the trend of recent filings for US spot bitcoin ETFs, the revised application from Fidelity indicates their intention to establish a surveillance-sharing agreement with a US-based cryptocurrency exchange. 

This move positions Fidelity as the latest prominent player from the traditional finance sector to enter the competition, following BlackRock’s notable application on June 15, which sparked a wave of interest and motivated other firms to follow suit.

We did an article on Blackrock’s application for a Spot Bitcoin ETF here. 

Per CoinTelegraph, Similar to other spot BTC ETF applications, this one stated that the CME Bitcoin Futures market “represents a regulated market of significant size as it relates […] to the spot bitcoin market.” It argued the point in detail and cited extensive research to support its view. The 193-page application said:

“The lack of a Spot Bitcoin ETP [exchange-traded product] exposes U.S. investor assets to significant risk because investors that would otherwise seek crypto asset exposure through a Spot Bitcoin ETP are forced to find alternative exposure through generally riskier means.”

The statement further highlighted the inclusion of FTX, Celsius, BlockFi, and Voyager Digital as previous examples of riskier alternatives. Additionally, it stated that investors might opt to purchase shares in unrelated companies like Tesla and MicroStrategy, which have substantial Bitcoin investments, as a means to indirectly gain exposure to BTC.

Bloomberg Intelligence has recorded approximately 30 attempts to launch a spot-bitcoin product. However, regulatory hurdles have impeded these applications, with authorities raising concerns over market stability, insufficient investor safeguards, and other related factors in the past.

But as mentioned above, if the FTX, Celsius, BlockFi, and Voyager Digital fiascos aren’t enough reason for regulatory bodies to see the upside of approving ETFs for investors, then who knows what will. 

If they are approved, including Fidelity, as I always say, with $4.2 Trillion dollars under management alone for Fidelity, the great race will be on to scoop the last of the Bitcoin remaining.