Fidelity Makes a Fresh Move with Refiled Spot Bitcoin ETF Application

In a renewed effort to launch a spot bitcoin exchange-traded fund (ETF), Fidelity, one of the leading asset management companies, has refiled the paperwork for its Wise Origin Bitcoin Trust. This development closely follows BlackRock’s submission of its own spot bitcoin ETF application a couple of weeks ago.

Initially, Fidelity had applied for the launch of the Wise Origin Bitcoin Trust in 2021. However, the U.S. Securities and Exchange Commission (SEC) rejected the proposal in 2022. Since BlackRock’s recent filing in June, several other fund companies, including Invesco and WisdomTree, have made similar moves. It was reported earlier this week that Fidelity would also join the race by submitting its application soon.

BlackRock and Fidelity Compete for Spot Bitcoin ETF Approval as SEC Evaluates Market Impact 

In line with BlackRock’s filing, Fidelity’s paperwork includes a “surveillance sharing agreement” with an undisclosed U.S.-based bitcoin trading platform. This arrangement aims to address the SEC’s concerns regarding potential market manipulation.

Fidelity emphasized the need for a spot bitcoin ETF by highlighting the losses suffered by cryptocurrency investors due to insolvencies of custodians and centralized exchanges. The company believes that the availability of a vehicle such as a spot bitcoin ETF would have protected countless investors from such incidents.

As of now, the SEC has not made any decisions regarding the newly submitted applications. While there is considerable optimism surrounding BlackRock’s application, given its historically successful track record with ETFs (excluding one), some remain skeptical.

Townsend Lansing, Chief Product Officer at CoinShares, expressed his doubts about the approval chances of BlackRock’s application, estimating a 10% probability. Lansing argued that the SEC seeks evidence of the majority of bitcoin trading being conducted on a U.S. crypto exchange.

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