Fidelity Investments resubmitted its application for a spot Bitcoin exchange-traded fund (ETF) called the Wise Origin Bitcoin Trust on June 29.
Fidelity first filed an application in 2021, but it was rejected by the SEC in January 2022, along with other Spot Bitcoin ETF applications. To date, the institution that submitted the spot application for the Bitcoin ETF has not received approval.
However, the wave of institutional interest appears to have been sparked by BlackRock’s Spot Bitcoin ETF. Fidelity is the latest to join a series of such re-applications triggered by BlackRock’s own filing in early June.
As of June 29, there are nine pending applications for Spot Bitcoin ETFs filed with the SEC. Other applications were submitted by Ark Invest, 21Shares, Bitwise, WisdomTree, Invesco, Valkyrie, and VanEck.
All but BlackRock’s applications have been denied by the SEC in the past two years. BlackRock itself has a long history of ETF approvals, with 575 ETFs approved and only one rejected, making the market optimistic that this application will also be approved. ing.
The SEC has argued that products directly exposed to Bitcoin are not safe for investors because there are not enough guardrails in place to prevent market manipulation. But Eliot ETF Chief Investment Officer Elliott Johnson said the main differentiator in BlackRock’s filing is a surveillance agreement that allows the Nasdaq to monitor the company’s trading activity. Johnson argued that this level of surveillance could effectively prevent such manipulation.
The court questioned the oversight agency’s logic in the Grayscale v. SEC case, arguing that it was flawed because it allowed ETFs based on Bitcoin futures. However, the lawsuit has not yet concluded, so it is unclear whether it will affect the current stance on spot ETFs.
The article, Fidelity Reapplying for Spot Bitcoin ETF Despite 2022 Denial, first appeared on CryptoSlate.