A Fidelity Investments location in New York.
Scott Mill | CNBC
Wealth management giant Fidelity Investments is trying to launch a spot again Bitcoin exchange-traded fund, according to a filing Thursday.
The move comes two weeks after BlackRock applied for a spot Bitcoin ETF, which the U.S. Securities and Exchange Commission has long opposed.
Other firms appear to have taken BlackRock’s filing as a sign that the SEC’s stance may be about to change. Since then, WisdomTree, VanEck and Invesco have taken the first steps towards their own funds. Cathie Woods Ark Invest on Wednesday requested changes to its proposed Bitcoin fund that bring it closer to BlackRock’s proposal.
Thursday’s filing is a proposed rule by the Cboe BZX Exchange to list the Wise Origin Bitcoin Trust, the name of Fidelity’s previously proposed Bitcoin ETF, which was rejected by the SEC. The exchange has made similar filings for other companies over the past two weeks.
The SEC has so far rejected every spot bitcoin fund application it has made a decision on. The Commission is in litigation with Grayscale over its decision to block the Grayscale Bitcoin Trust’s conversion into an ETF. A decision in this case is expected later this year.
One of the SEC’s primary concerns regarding a spot bitcoin product is the transparency of the market and the potential for manipulation. BlackRock’s filing includes a proposed surveillance sharing agreement that could allay those concerns. Subsequent submissions contain similar proposals.
The SEC has already allowed the creation of ETFs that track Bitcoin futures contracts, including the ProShares Bitcoin Strategy ETF (BITO) who has assets in excess of $1 billion. The first leveraged bitcoin futures fund launched on Tuesday.
The new rush towards ETFs appears to have pushed Bitcoin prices higher. The digital currency was trading at around $30,500 as of Thursday afternoon, up from below $26,000 ahead of BlackRock filing.