Asset management giant Fidelity plans to apply for permission to launch a spot Bitcoin (BTC) exchange-traded fund (ETF) in the U.S.
Fidelity is the latest investment firm to seek permission from the U.S. Securities and Exchange Commission (SEC) to market a Bitcoin ETF in America.
On June 15, asset management giant BlackRock (BLK) filed an application to launch a spot Bitcoin fund. It was soon followed by Invesco (IVZ), WisdomTree (WT), and Bitwise.
The upcoming application to the SEC will be Fidelity’s second attempt to launch a Bitcoin ETF. In 2021, the company filed to start the “Wise Origin Bitcoin Trust” but the application was denied by the regulator.
Many analysts see exchange-traded funds as a potential game changer for the crypto sector as they will provide a way for investors to gain exposure to digital coins and tokens without having to own the underlying asset, significantly reducing costs and risk.
Like BlackRock, Fidelity is one of the largest investment firms in the world with $11 trillion U.S. in assets under management.
Fidelity has, since 2018, operated an institutional custody and trading service focused on cryptocurrencies.
However, Fidelity and other investment houses are eager to begin offering Bitcoin ETFs to retail investors, citing strong demand for such products in the marketplace.
Cryptocurrency ETFs are already available in other countries, including neighbouring Canada. Bitcoin’s price has risen 82% this year to $30,250 U.S. due, in part, to expectations that the ETF applications will be approved by the SEC this time around.
