Fidelity Joins Race for Bitcoin ETF Approval

Fidelity follows other major asset managers in seeking approval for a Bitcoin ETF from the U.S. Securities and Exchange Commission.

Asset management company Fidelity is anticipated to submit an application to the U.S. securities regulator for a Bitcoin exchange-traded fund (ETF), according to a report by the Block on Tuesday, citing an anonymous source.

Fidelity is part of a group that includes market makers Citadel Securities and Virtu Financial, retail broker Charles Schwab, and venture capital firms Paradigm and Sequoia Capital. This group recently launched a cryptocurrency exchange called EDX Markets. EDX Markets, which is backed by Fidelity, began operating in the U.S. last week and supports Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

The move follows other large money managers, including BlackRock, WisdomTree, Invesco, VanEck, and Bitwise, who have recently filed applications with the U.S. Securities and Exchange Commission (SEC) for Bitcoin ETFs. The announcement caused the price of Bitcoin to surge to over $31,000 on June 23rd, its highest level in over a year, but quickly fell back down to $30,500.

In 2021, the SEC rejected Fidelity’s application for a Bitcoin ETF. While regulators have allowed futures-based Bitcoin ETFs since October 2021, they have rejected applications for spot ETFs due to concerns about market manipulation. The recent filings by major asset management firms are seen as a sign of confidence in the cryptocurrency space.