An Updated Bitcoin ETF Application from Fidelity
Notable asset managing company, Fidelity, has proposed a revised plan for a Bitcoin spot exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). The firm aims to meet regulatory requirements in hopes to secure approval in the ongoing suit for an investment product. Fidelity has been making these strides in reaction to concerns raised by the SEC, that had initially served as a barrier to the approval of the product.
Fidelity’s Revised Proposal for a Spot Bitcoin ETF Submitted to SEC
A newly revised version of its Wise Origin Bitcoin Trust, which is a spot Bitcoin ETF has been tendered to the U.S. securities regulatory body by Fidelity. The investment giant aims to satisfactorily meet the requirements of the SEC, thereby increase the chances for approval of the ETF.
The updated proposal puts Fidelity on a level with other hopeful issuers that have striven to meet the SEC’s regulatory concerns. Investment firms Ark Invest and Invesco had earlier re-submitted their plans in October.
James Seyffart, an ETF analyst of Bloomberg’s, perceives these moves as a positive moves. Seyffart opined that the renewed push by these firms to meet the SEC’s requirements is indicative that these firms are communicating effectively with the SEC on the changes needed for consideration of their ETFs.
Scott Johnsson, a finance lawyer, pointed out several recurring aspects in the revised applications. Among them include detailing custodial arrangements, speaking on hard forks, and the energy cost of cryptocurrency mining.
In 2021, the SEC gave its approval to ETFs that held Bitcoin futures. However, the regulatory authority has been less accommodating to a spot Bitcoin ETF. Previous reservations included fears over potential fraud, market manipulation, concerns over custody, and the protection of investors.
SEC’s Continued Delay on Approving Bitcoin ETF Applications
Earlier this year, the SEC agreed to reevaluate some applications but has postponed its decisions on the proposals. Among those impacted, include Fidelity itself, BlackRock, Invesco, and several other companies. Industry experts expect judgment on one or more ETFs in the first quarter of next year.
The SEC’s failure to put an appeal against a court ruling favoring Grayscale’s Bitcoin ETF to rest on time has given investors cause for optimism. This led to a surge in bitcoin this week due to an incorrect report claiming approval of BlackRock’s bitcoin ETF.
What is your take on the potential approval of the updated Spot Bitcoin ETF applications? Feel free to share your thoughts below.
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Frequently asked Questions
1. What is the purpose of the Fidelity application update for a spot Bitcoin ETF?
The purpose of the Fidelity application update is to enhance the functionality and user experience of their spot Bitcoin ETF application.
2. What specific updates have been made to the Fidelity application?
The specific updates made to the Fidelity application include improved security measures, enhanced trading features, and smoother navigation for users.
3. How will the Fidelity application update benefit investors interested in spot Bitcoin ETFs?
The Fidelity application update will benefit investors by providing them with a more user-friendly platform to trade spot Bitcoin ETFs, ensuring a seamless and convenient investment experience.
4. Will the Fidelity application update affect the availability or accessibility of spot Bitcoin ETFs?
No, the Fidelity application update will not affect the availability or accessibility of spot Bitcoin ETFs. It is solely focused on improving the application’s features and functionality.
5. Are there any additional fees associated with using the updated Fidelity application for spot Bitcoin ETFs?
There may be additional fees associated with using the updated Fidelity application for spot Bitcoin ETFs. Investors are advised to review the updated terms and conditions to understand any changes in fees.
6. How can investors download and access the updated Fidelity application?
Investors can download and access the updated Fidelity application for spot Bitcoin ETFs through their respective app stores or Fidelity’s official website. Detailed instructions will be provided on the platform.
7. Are there any other notable features or improvements in the Fidelity application update?
Yes, along with the functional updates, the Fidelity application update also introduces improved data analytics, real-time market insights, and personalized investment recommendations for users interested in spot Bitcoin ETFs.