Asset management firm Fidelity has resubmitted a bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC). The firm has previously seen its spot ETF applications rejected.
Fidelity Bitcoin ETF Launches New Round With SEC
Details of a filing suggest Fidelity is determined to approve a spot bitcoin ETF, even though past actions by the SEC suggest this is unlikely.
This is the second time Fidelity has filed such an application, and it comes just two weeks after BlackRock filed for a spot bitcoin ETF.
The filing shows Cboe BZX exchange`s proposed rules for listing Fidelity`s Wise Origin Bitcoin Trust. It noted that the regulatory landscape had changed significantly since 2016 and therefore considered it time to approve,
[Outside of the Commission`s remit, the regulatory landscape has changed significantly since 2016, and the cryptocurrency market has grown and evolved. The Bitcoin market is about 100 times larger, reaching a market cap of over $1 trillion at one point."
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
Bitcoin ETF struggles to get approved
There have been multiple attempts by various entities to approve a bitcoin spot ETF. Companies that have already submitted applications include VanEck, Valkyrie, SkyBridge, WisdomTree and CBOE, among others.
Two of the more high-profile filings came from BlackRock and Ark Invest. The former is the world's largest asset manager and filed earlier this month. BlackRock to launch ETF in partnership with Coinbase.
As for Ark Investments, the SEC has delayed a decision on its spot bitcoin ETF. With this in mind, the firm recently filed for a physical bitcoin ETF.
The SEC has rejected a spot bitcoin ETF application, citing the risk of market manipulation and lack of investor protections. Many companies have filed, but it appears the SEC won't approve the ETFs until the market has more regulatory control. Meanwhile, Grayscale is dealing with the SEC on the matter.
Following the influx of these ETF applications, CME Group announced plans to launch an ETH-to-BTC ratio futures product. It's a very different product than Fidelity's bitcoin ETF, but should have some traction if it gets regulatory approval.
If approved, the product will be available on July 31. CME also said the futures will be cash-settled.
