{"id":413653,"date":"2023-06-30T11:47:38","date_gmt":"2023-06-30T11:47:38","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=413653"},"modified":"2023-06-30T11:47:38","modified_gmt":"2023-06-30T11:47:38","slug":"pressure-builds-on-the-sec-as-fidelity-digital-joins-the-spot-bitcoin-etf-race","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/pressure-builds-on-the-sec-as-fidelity-digital-joins-the-spot-bitcoin-etf-race","title":{"rendered":"Pressure Builds On The SEC As Fidelity Digital Joins The Spot Bitcoin ETF Race"},"content":{"rendered":"

Asset management giant Fidelity resubmitted its application for Wise Origin Bitcoin Trust, a spot bitcoin ETF. This move comes shortly after BlackRock’s iShares unit filed for its own spot Bitcoin ETF<\/a>. It reflects the growing interest in regulated investment vehicles for cryptocurrencies.<\/p>\n

The resubmission of Fidelity’s application reflects the increasing recognition of spot bitcoin ETFs as a pivotal development in the cryptocurrency industry.<\/em><\/p><\/blockquote>\n

Fidelity Resubmits Application for Spot Bitcoin ETF, Following BlackRock’s Lead<\/h2>\n

Fidelity’s decision to resubmit its application comes after the US Securities and Exchange Commission (SEC<\/a>) rejected its initial attempt in 2022.<\/p>\n

Fidelity is determined to navigate the regulatory landscape. Hopefully, the asset manager will secure approval for its spot Bitcoin ETF this time.<\/p>\n

https:\/\/twitter.com\/LordOrdinal\/status\/1674471608944062464<\/p>\n

Citing a paragraph in the filing<\/a>:<\/p>\n

Fidelity Digital Assets Services, LLC (‘FDAS’), a regulated custodian licensed by the New York Department of Financial Services, will be responsible for the custody of the Trust’s bitcoin (the ‘Custodian’).<\/em><\/p><\/blockquote>\n

Fidelity’s updated filing includes a “surveillance sharing agreement” with an undisclosed US spot-based bitcoin trading platform. This is meant to address the SEC’s concerns regarding market manipulation, as the financial regulator has approved or disapproved such applications to list and trade Trust Issued Receipts before.<\/p>\n

The determining factor for approval or disapproval is whether the listing applicant has established a “comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying commodity to be held.”<\/p>\n

This criterion aims to ensure that a substantial portion of the trading activity occurs within regulated and compliant platforms. It would mitigate potential risks associated with unregulated offshore exchanges.<\/p>\n

Fidelity Adds To The Pile Of Applications On The SEC’s Desk<\/h2>\n

Besides Fidelity, other notable fund companies, including Invesco, BlackRock, WisdomTree<\/a>, and Cathie Wood’s Ark Invest, have also submitted similar filings. All seven filings underscore the growing interest<\/a> in this sector of institutional finance.<\/p>\n

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The institutions are coming for crypto! In the past two weeks we have had:<\/p>\n

– BlackRock, Fidelity, VanEck, WisdomTree & Invesco filing spot #Bitcoin<\/a> ETFs<\/p>\n

– EDX Markets backed by Citadel, Virtue, Fidelity, Charles Schwab etc launches<\/p>\n

– HSBC in Hong Kong offers Bitcoin & Ethereum…<\/p>\n

— Coin Bureau (@coinbureau) June 30, 2023<\/a><\/p><\/blockquote>\n