Fidelity Submits Updated Spot Bitcoin ETF Application

Celý článek

Fidelity has submitted an updated proposal for a spot bitcoin exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). The asset manager joins other applicants in continued efforts to address regulatory concerns that have stood in the way of approving the investment product.

Fidelity Files Updated Spot Bitcoin ETF Prospectus With SEC

Financial giant Fidelity has submitted a revised version of its Wise Origin Bitcoin Trust to the U.S. securities regulator. The updated spot bitcoin ETF prospectus seeks to meet SEC requirements which could increase the chances of approval.

With the new filing, Fidelity joins other potential issuers that have tried to address the regulator’s concerns in various areas. Invesco and Ark Invest refiled their applications earlier in October.

Bloomberg’s James Seyffart views these moves as positive signs. The ETF analyst commented on the latest development in a post on X, formerly Twitter:

More proof that potential spot Bitcoin ETF issuers are in communication with SEC regarding changes/amendments required for SEC to consider approving. Positive signs IMO.

Seyffart share a tweet by finance Lawyer Scott Johnsson who highlighted several common themes that appear in the amended applications. These include detailing custodial arrangements, addressing hard forks and the energy intensive nature of crypto mining.

Recurring themes I’m seeing in the amendments so far:
– Specifying custodial arrangements in detail
– Mechanics around hard forks
– Valuation/pricing sources and adherence to GAAP
– Risk disclosure around regulatory uncertainty
– Mining is very energy intensive… https://t.co/sFJqwznuzr

— Scott Johnsson (@SGJohnsson) October 17, 2023

The U.S. Securities and Exchange Commission approved ETFs holding bitcoin futures in 2021 but the agency has been reluctant to give the nod to a spot bitcoin ETF, previously citing risks of fraud and market manipulation as well as concerns over custody and investor protection.

Earlier this year, the SEC accepted to review a number of applications but has since delayed its decisions on the proposals of Fidelity, financial powerhouse Blackrock, Vaneck, Wisdomtree, Valkyrie, Bitwise, and Invesco among others.

The Commission’s judgement on one or more ETFs is expected by many in the industry in the first quarter of next year with events such as the SEC recently missing the deadline to appeal a court ruling in favor of Grayscale’s spot bitcoin ETF giving cause for optimism. As a proof of the growing anticipation, bitcoin (BTC) surged this week on fake news that Blackrock’s bitcoin ETF had been approved.

Do you think the SEC will approve the updated applications for spot bitcoin ETFs? Share your thoughts on the subject in the comments section below.