Another Bitcoin ETF application hit the headlines in recent weeks. Following BlackRock, another company mentioned, Fidelity, announced a few minutes ago that it has applied for a Spot Bitcoin ETF and shared this with the public. It was seen that the application documents of 193 pages were also added to the shared statement.
Bitcoin ETF Move Came
According to an application made on Thursday, asset management giant Fidelity Investments is trying to launch a spot bitcoin ETF again. This move came two weeks after BlackRock applied for a long-opposed spot bitcoin ETF by the Securities and Exchange Commission (SEC).
Other firms seem to have taken BlackRock’s application as a sign that the SEC’s attitude may soon change. Since then, WisdomTree, VanEck, and Invesco have taken the first steps for their own funds. Cathie Wood’s Ark Invest applied for changes that brought the Bitcoin fund it proposed on Wednesday closer to BlackRock’s application.
Thursday’s application is a rule proposed by the Cboe Bzx Exchange to list the Wise Origin Bitcoin Trust, the name of the bitcoin ETF previously proposed and rejected by Fidelity. The exchange has made similar applications for other firms in the past two weeks.
SEC Rejects All Applications
The SEC has rejected all spot Bitcoin fund applications made so far. The Commission is in a legal battle with Grayscale over the decision to prevent the Grayscale Bitcoin Trust from being converted into an ETF. A decision is expected in this case this year.
One of the SEC’s most significant concerns about the spot bitcoin product is the potential for market transparency and manipulation. The BlackRock application includes a proposed surveillance-sharing agreement that could alleviate these concerns. There are similar proposals in subsequent applications.
The SEC has already allowed the creation of ETFs following bitcoin futures contracts, including the ProShares Bitcoin Strategy ETF (BITO) with more than $1 billion in assets. The first leveraged bitcoin futures fund met the market on Tuesday.
The new movement towards ETFs seems to be raising Bitcoin prices. The cryptocurrency, which was below $26,000 before the BlackRock application, was trading around $30,500 on Thursday afternoon.
