Fidelity Jumps Into Bitcoin Spot ETF Race After BlackRock Filing

Summary:

Fidelity could submit a Bitcoin (BTC) spot ETF application as early as Tuesday, The Block reported citing a source.A flurry of BTC ETF applications came from companies like Widomtree and Invesco after BlackRock’s filed on June 15.Bitcoin broke above $30,000 for the first time since April shortly after BlackRock’s filing with the U.S. Securities and Exchange Commission.

Asset management heavyweight Fidelity is reportedly working on filing a Bitcoin spot ETF application with the U.S. Securities and Exchange Commission, per crypto news outlet The Block citing a familiar with the firm’s intentions.

According to the report, Fidelity could submit an application as early as Tuesday.

BTC/USDT by TradingView

Bitcoin Spot ETF Race Heats Up

Fidelity enters a pool of institutions and companies in the open race to offer America’s first Bitcoin spot exchange-traded fund, a product that the SEC and Chair Gary Gensler have notoriously rejected on several occasions.

BlackRock submitted its filing for a Bitcoin Spot ETF on June 15, ushering a wave of applications from other institutions like WisdomTree, Invesco, and now Fidelity. Crypto proponents speculate that the trillion-dollar asset manager stands a chance at success after successfully filing over 500 applications with the SEC.

Grayscale, a subsidiary of Digital Currency Group, has filed a number of unsuccessful applications with the securities watchdog. The company has repeatedly tried to convert its Grayscale Bitcoin Trust (GBTC) product to a Bitcoin Spot ETF with no luck. Grayscale is currently locked in a legal tussle with the SEC over the regulator’s decision to deny its application despite approving Bitcoin Futures ETFs.

Bloomberg analysts believe that Grayscale has a 70% chance of winning in court after three judges heard arguments from both sides. This has also seemingly upped the chances of BlackRock’s application going through as the SEC could look to soften the impact of coming up short in court, per comments from Bloomberg’s Eric Balchunas and Elliott Z. Stein.