$4.5 trillion asset manager Fidelity has officially filed for a spot Bitcoin ETF
After news of Fidelity Digital Assets possible submission of new EFT application to the Securities and Exchange Commission (SEC), the asset manager has resubmitted its filing to launch a Bitcoin Spot ETF in the US.
Fidelity resubmits application
Fidelity Digital Assets—the $4.5T asset Manager’s crypto arm—has reapplied for a Bitcoin Spot ETF with the SEC. This is according to a Thursday filing by the firm.
According to a 19b-4 filing posted by Cboe on its website, the new fund is called Wise Origin Bitcoin Trust. FD Funds Management LLC is the sponsor of the Trust, while Fidelity Digital Assets Services will be in charge of the custody of the trust’s Bitcoin.
The filing has some similarities with the earlier filings by BlackRock and ARK.
Similar to ARK on Wednesday, Fidelity started by disputing the reasons given by the Commission for rejecting earlier spot ETF applications, including their own. The SEC’s major argument is that the applicants haven’t formed an SSA with a regulated market of sufficient size up to this point, and therefore CME Bitcoin Futures don’t count.
Like BlackRock, in order to allay SEC worries about market manipulation, it also includes a “surveillance sharing agreement” with an undisclosed U.S. spot-based Bitcoin trading firm.
“A meaningful portion of our customers are interested in and own digital assets,” a Fidelity spokesperson said. “Fidelity remains committed to providing customers with a portfolio of solutions that offer choice, accompanied by education and support as they leverage products to meet their financial needs and objectives.”
An ETF is an investment vehicle that helps to track the value of an asset like gold or fiat currency. Upon approval, this vehicle may now track Bitcoin.
Playing cards or assured?
As it stands, the chances of approval have been debated. Many analysts are optimistic that the rush may force the SEC’s hands. However, the chances are still gloomy.
Fidelity previously applied for a Bitcoin ETF in 2021 but was rejected.
Investors have pushed for a Bitcoin ETF to allow them free themselves from managing the custody of the asset. So far, the SEC hasn’t granted any of the recent applications.
While emphasizing that the dates for when the files would be granted or refused are not precise, Jaymes Seyffart, an ETF analyst at Bloomberg, shared his educated estimations on when the submissions may be responded to on Twitter. He estimated that the potential clearing date would be September 2. He schedules ARK for August 13 before BlackRock on August 19.
“The lack of a Spot Bitcoin ETP 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,” argued Fidelity in its filing.
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