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Fidelity spot bitcoin ETF application refiled with U.S. SEC

Published 30/06/2023, 04:00 am
© Reuters. FILE PHOTO: A sign marks a Fidelity Investments office in Boston, Massachusetts, U.S., April 28, 2022.   REUTERS/Brian Snyder/File Photo
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(Reuters) -Asset manager Fidelity is once again seeking to list and trade shares of its Wise Origin Bitcoin Trust spot bitcoin exchange-traded fund, according to a filing by listing exchange Cboe Global Markets with the U.S. Securities and Exchange Commission.

Fidelity is one of several big asset managers that have applied to list bitcoin ETFs recent weeks. BlackRock (NYSE:BLK), WisdomTree, Invesco and VanEck also submitted paperwork for spot bitcoin ETFs on Cboe BZX, Nasdaq and NYSE Arca, which is owned by Intercontinental Exchange Inc.

The spate of filings from the so-called "traditional finance" heavyweights has breathed some life into an ailing crypto industry, with bitcoin hitting a one-year high over $31,000 on June 23.

Bitcoin had struggled to gain traction after a series of crypto company meltdowns, including the sudden collapse of exchange FTX late last year, which authorities say was running a multi-billion dollar fraud.

A regulatory crackdown has also weighed on the crypto sector. Binance and Coinbase (NASDAQ:COIN) Global, two of the biggest crypto exchanges, were sued this month by the SEC for allegedly violating its rules, which the pair deny.

The SEC has rejected dozens of spot bitcoin ETF applications in the past few years, including one from Fidelity in January 2022. In all cases, the regulator said the filings did not meet standards designed to prevent fraudulent and manipulative practices and protect investors and the public interest.

© Reuters. FILE PHOTO: A sign marks a Fidelity Investments office in Boston, Massachusetts, U.S., April 28, 2022.   REUTERS/Brian Snyder/File Photo

The first bitcoin futures ETF was approved in October 2021, helping send the volatile bitcoin to an all-time high of $69,000 in November 2021, and raising hopes that a spot bitcoin ETF would soon be approved.

Spot ETFs directly track the price of the cryptocurrency, while futures-based ETFs follow the price of bitcoin futures contracts.

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