After the rumors, it’s now official. Asset manager Fidelity Investments, which has over $4.2 trillion in assets under management, has officially applied for a spot Bitcoin ETF. It joins other giants such as BlackRock, WisdomTree and Invesco in the race for the spot ETF.
Fidelity joins the race for the Bitcoin spot ETF
We indicated it yesterday in our columns, Fidelity Investments was about to file an application for a spot Bitcoin ETF. As a reminder, the asset management giant had already made a similar request at the beginning of 2022 but had received a first refusal from the Securities and Exchange Commission (SEC).
This request falls within a new trend initiated by BlackRock and followed by WisdomTree and Invesco for the creation of a first spot ETF on Bitcoin. The first tests, in the heart of the 2021 bull market, were not enough to convince the American financial policeman.
The Form 19b-4 filed by Fidelity gives us more information about the fund. Note that it was shared by the Chicago Board of Options Exchange (CBOE), the largest US derivatives exchange, located in Chicago. It is also the second largest market in the United States, in volume traded, behind the New York Stock Exchange.
Called “Wise Origin Bitcoin Trust”, this ETF includes a shared monitoring mechanism, similar to that of BlackRock. Indeed, it will be sponsored by FD Funds Management LLC and piloted by Fidelity Digital Assets Services, which will be responsible for the custody of the bitcoins.
This element could be differentiating in the decision of the SEC to accept this fund, after having refrained from approving any spot bitcoin ETF. Since BlackRock’s first deposit on June 15, the price of Bitcoin has soared by more than 22%.
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Source: Form 19b-4
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