It also addresses investors’ growing appetite for varied and innovative investment solutions.
Fidelity investments has resubmitted its application to the US Securities and Exchange Commission (SEC) for the grant of its Wise Origin Bitcoin Trust, its own version of the spot Bitcoin ETF.
Fidelity resubmits application
Fidelity’s updated proposal is the asset management firm’s commitment to transparency, liquidity, security for investors in a bid to address the SEC’s concerns.
It also addresses investors’ growing appetite for varied and innovative investment solutions.
The investment vehicle is meant to serve investors who don’t want to deal directly with cryptocurrencies while allowing them to buy and sell the fund shares.
On the other hand, the SEC has taken a cautious approach to spot Bitcoin exchange-traded funds. The main worries have been market manipulation, possible fraud, custody problems, and the general requirement to safeguard investors. As a result, plans from firms such as VanEck and Valkyrie have not been implemented due to rejection or protracted delays.
Read more: Fidelity resubmits Bitcoin Spot ETF application joining TradFi hopeful approval rush
If an ETF is approved, it will open up a vehicle of connection between institutional and mainstream investors and cryptocurrencies, allowing them to interact without having to purchase the underlying digital asset. There may be a spike in demand when large sums of money enter the market, which might raise the price of cryptocurrencies.
“In response to these events [FTX’s collapse], the digital asset markets have experienced extreme price volatility and declines in liquidity, and regulatory and enforcement scrutiny has increased, including from the DOJ, the SEC, the CFTC, the White House and Congress,” the amendment read.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
