Fidelity's Second Attempt at Bitcoin ETF

In a recent development reported by CoinDesk, Fidelity, a leading player in asset management, is making another attempt to launch a spot Bitcoin ETF, the Wise Origin Bitcoin Trust. This move is hot on the heels of a similar filing by BlackRock’s iShares unit, indicating a significant shift in the financial landscape.

As per CoinDesk’s report, Fidelity’s first attempt to launch the Wise Origin Bitcoin Trust in 2021 was thwarted by the U.S. Securities and Exchange Commission (SEC), leading to its rejection in 2022. However, the recent filing by BlackRock seems to have sparked a renewed interest in a spot Bitcoin ETF, with other fund companies such as Invesco and WisdomTree joining the race.

In an effort to address the SEC’s concerns about market manipulation, Fidelity’s recent filing includes a “surveillance sharing agreement” with an undisclosed U.S. spot-based Bitcoin trading platform. This agreement aims to provide a layer of transparency and security in the trading process.

CoinDesk also highlights Fidelity’s emphasis on the recent losses suffered by crypto participants due to insolvencies of custodians and centralized exchanges. Fidelity argues that access to a vehicle like a spot Bitcoin ETF could have protected numerous investors from such losses.

The SEC’s decision on the new applications is still pending. While there’s optimism surrounding BlackRock’s application, skepticism remains. CoinShares’ Chief Product Officer, Townsend Lansing, estimates a 10% chance of approval for BlackRock’s application, suggesting that the SEC is looking for the majority of Bitcoin trading to be facilitated on a U.S. crypto exchange.

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