Fidelity inches closer to Bitcoin ETF application - report

Fidelity Investments is reportedly moving closer to filing an application for approval of its own spot Bitcoin (BTC) exchange-traded fund (ETF). The Block, citing a source familiar with the matter, confirmed speculations that began circulating nearly two weeks ago.

The US mutual fund company follows in the footsteps of BlackRock, which submitted its application on June 15.

There has been ongoing speculation for some time that Fidelity Investments would take a similar step, especially since it had previously presented comparable plans in 2021. Despite an unsuccessful attempt two years ago, which resulted in the Securities and Exchange Commission (SEC) rejecting their application in early 2022, Fidelity seems determined to pursue this avenue once again.

According to sources familiar with the matter, The Block suggests that Fidelity may submit the application for the spot Bitcoin ETF as early as this week. However, when approached for comment, Fidelity declined to address these rumors, maintaining their silence on the subject.

Interestingly, ARK Investment Management, headed by renowned investor Cathie Wood, had already filed a similar application with the SEC prior to BlackRock’s recent submission. The investment firm made this move back in April, indicating a growing interest among industry players.

The filings made by companies such as BlackRock, WisdomTree, Invesco, and potentially Fidelity have sparked a surge of excitement in the digital assets market. These Wall Street giants appear to be eager to secure their share of the cryptocurrency market, particularly in light of regulatory concerns surrounding “unregulated” exchanges like Binance and Coinbase in the United States.

Bitcoin’s price has experienced a remarkable rebound, surging by over 25% in just one week and reaching new annual highs. Since the beginning of the year, the cryptocurrency has witnessed an impressive growth of 80%. However, despite these price movements, network activity does not indicate a significant increase in new users or trading volumes. It appears that the recent surge is primarily driven by speculative factors and a record inflow of cash into existing cryptocurrency ETFs.

While the SEC has been reluctant to approve a spot Bitcoin ETF for several years, the regulatory body has allowed the trading of exchange-traded funds based on the valuation of cryptocurrency futures contracts.