Fidelity joins race for spot-bitcoin ETF with SEC filing

It's the latest high-profile traditional financial finance firm to file for such an exchange-traded fund, after BlackRock made a splash with its June 15 application.

Fidelity Investments is the latest financial services heavyweight to throw its name into the race to offer the first U.S. exchange-traded fund investing directly in bitcoin.

The Boston-based asset manager, which has about $11 trillion in assets under administration and tens of millions of customers, refiled for the Wise Origin Bitcoin Trust, according to a document submitted Thursday with the Securities and Exchange Commission. Similar to previous U.S. spot bitcoin ETF filings in the past few weeks, the updated application says that Fidelity expects to enter into a surveillance-sharing agreement with a cryptocurrency exchange.

It’s the latest high-profile traditional finance firm to join the race, after BlackRock Inc. made a splash with its June 15 application for a spot ETF, which opened the floodgates for others to try their hand at it, as well. For crypto fans, it’s been a significant string of developments given BlackRock’s reputation on Wall Street, and the view held by some market-watchers that the asset manager wouldn’t be making an attempt were it not confident it could get regulatory approval.

There have been about 30 tries for a spot-bitcoin product, according to a tally from Bloomberg Intelligence. But applications have faced opposition by regulators, who have in the past cited market concerns and a lack of investor protections, among other things. Fidelity originally filed for the Wise Origin Bitcoin Trust in 2021, which was denied by the SEC in January 2022, according to a Fidelity spokesperson.

Even so, BlackRock’s move spurred a number of similar filings from other issuers, including by Invesco Ltd., WisdomTree, Valkyrie and Bitwise. Meanwhile, Cathie Wood’s ARK Investment Management has said that it believes it could be first in line to get any potential regulatory approval. ARK had in April, in conjunction with crypto-issuer 21Shares, refiled its application for one.

To be sure, this isn’t the first hype cycle over a potential launch. Crypto fans, who have been yearning for a spot-bitcoin ETF for years, have been through periods of excitement before, only for regulators to ultimately rebuff all attempts.

While BlackRock’s filing was credited by observers for helping to push the price of bitcoin to a one-year high last week, the market reaction to the Fidelity refiling was fairly muted. Bitcoin was up about 1.5% to $30,500 as of 2:25 p.m. Thursday in New York, though off the highest level of the day.

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