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Battle for exchange-traded Bitcoin funds intensifies: Fidelity and BlackRock in the ring

 


Asset management giant Fidelity has recently resubmitted paperwork for its Wise Origin Bitcoin Trust, a spot bitcoin ETF. This comes after a previous rejection by the U.S. Securities and Exchange Commission (SEC) in 2022. The move follows similar filings by BlackRock and other fund companies, signaling a growing interest in spot bitcoin ETFs.

Repeated Application and Background: After BlackRock filed for its spot ETF in June, other firms such as Invesco and WisdomTree also followed suit. Reports had indicated that Fidelity would make a filing soon. Like BlackRock's application, Fidelity's paperwork includes a "surveillance sharing agreement" with an unnamed U.S.-based bitcoin trading platform, addressing SEC concerns about market manipulation.

Investor Protection and SEC Concerns: Fidelity highlighted recent losses incurred by crypto participants due to insolvencies of custodians and centralized exchanges, emphasizing that a spot bitcoin ETF could have protected countless investors. The SEC, however, is yet to make a decision on these new applications, with some remaining skeptical despite BlackRock's track record of ETF approvals.

Outstanding SEC Decisions: While optimism surrounds BlackRock's application, given its previous success rate, including over 575 approved ETF applications, one industry expert, Townsend Lansing, suggests a 10% chance of approval. Lansing argues that the SEC wants to see a majority of bitcoin trading facilitated on a U.S. crypto exchange, adding uncertainty to the outcome.

Current Bitcoin Price: The news has had little impact on the price of bitcoin (BTC), which remains unchanged at $30,500 at the time of this article.

Conclusion: Fidelity's resubmission of paperwork for the Wise Origin Bitcoin Trust indicates the ongoing demand for bitcoin ETFs. The competition in the spot ETF space has intensified with companies like Fidelity and BlackRock vying for SEC approval. The ultimate decision rests with the SEC, whose concerns about market manipulation and the dominance of U.S. crypto exchanges may influence the outcome.

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