Logll Tech News — Fidelity, a prominent player on Wall Street, is gearing up to submit its own filing for a spot bitcoin exchange-traded fund (ETF). This move puts Fidelity in the race for ETF approval, which was initiated by BlackRock earlier this month.
- As one of the leading asset management giants, Fidelity is on the verge of joining a long list of issuers vying to become the first to launch a spot bitcoin ETF. A reliable source familiar with the company’s plans revealed that Fidelity could submit its filing as early as Tuesday, taking cues from BlackRock’s previous actions.
Following BlackRock’s filing on June 15, other asset managers, including Invesco, WisdomTree, and Bitwise, have also expressed their interest in launching their own spot bitcoin funds.
This will be Fidelity’s second attempt at introducing such a product. In 2021, the company filed for a bitcoin spot exchange-traded fund known as the Wise Origin Bitcoin Trust, but it was ultimately denied by the U.S. Securities and Exchange Commission (SEC) in early 2022.
The Prospects of a Bitcoin ETF
Market experts consider the launch of a spot bitcoin ETF to be a game-changing development. Such an ETF would offer investors exposure to the bitcoin market without the need to directly handle the underlying asset. BlackRock’s filing, in particular, has garnered attention due to the company’s size and significance in global markets.
“BlackRock’s decision to file for a Bitcoin ETF signals that large institutional players are positive on the long-term outlook for the digital asset,” stated Yassine Elmandjra, an analyst at Ark.
Fidelity is also a powerhouse in the industry, boasting tens of millions of retail brokerage clients and over $11 trillion in assets under administration. The company is well-acquainted with the crypto landscape, having operated an institutional custody and trading services business since 2018. Furthermore, it has been offering fund products to European clients through Fidelity International since February 2022.
Bitcoin Bounces Back on BlackRock’s Influence
- Bitcoin, the disruptive currency challenging traditional financial systems, has recovered from a recent slump with the backing of Wall Street’s top players.
The original cryptocurrency has surged by 20%, reaching a two-month high of $30,182 in the past 11 days. This resurgence came after BlackRock, the world’s largest asset manager, expressed optimism about a potential spot bitcoin exchange-traded fund (ETF) in the United States. BlackRock’s filing for a prospective spot bitcoin ETF on June 15 displayed their unwavering determination, despite previous rejections by the Securities and Exchange Commission (SEC). The news provided a boost to bitcoin, helping it break free from a period of decline and end two consecutive weeks of losses.
Bitcoin’s market value now constitutes nearly half of the overall crypto market, totaling $1.1 trillion. This represents the highest market share in over two years, according to data from CoinMarketCap.com. At the beginning of the year, bitcoin held around 40% of the market share, a significant increase from a low of 34% in 2018.
“The news of the ETF filing is evidence of adoption and interest from top global players, which is, of course, interesting to institutional investors and traders alike,” commented Mikkel Morch, chairman of digital asset investment fund ARK36.
🚀 Exciting development for Bitcoin! BlackRock's spot Bitcoin ETF application earlier this month could be a significant turning point towards institutional recognition! 🌐💼📈#Bitcoin #BlackRock #ETF #CryptoNews #InstitutionalInvestors #Blockchain @BlackRock
— Logll Tech News (@LogllNews) June 26, 2023
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“BlackRock’s decision to file for a Bitcoin ETF signals that large institutional players are positive on the long-term outlook for the digital asset.” – Yassine Elmandjra, analyst at Ark.
“The news of the ETF filing is evidence of adoption and interest from top global players, which is, of course, interesting to institutional investors and traders alike.” – Mikkel Morch, chairman of digital asset investment fund ARK36.
“The launch of a spot Bitcoin ETF is considered a game-changing development. Such an ETF would offer investors exposure to the Bitcoin market without the need to directly handle the underlying asset.”
Thank you to Reuters, and Coinmarketcap for the content.
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Conclusion
In conclusion, Fidelity’s move to submit a Bitcoin ETF filing, following in the footsteps of BlackRock, demonstrates the growing interest and competition surrounding the approval of a spot Bitcoin ETF. This development has the potential to bring about a significant financial breakthrough and revolutionize the digital asset market. With the prospects of a Bitcoin ETF on the horizon, the future of cryptocurrencies and their integration into mainstream financial systems appears more tangible than ever. As institutional players continue to express optimism and interest in the market, the stage is set for further advancements and innovation in the evolving landscape of digital assets.