Fidelity Resubmits Bitcoin ETF Application, Addressing SEC Concerns

Fidelity Investments has submitted a revised proposal for the “Wise Origin Trust,” a Bitcoin spot exchange-traded fund (ETF), to the US Securities and Exchange Commission (SEC). This move is seen as a response to the regulatory body’s ongoing concerns about market manipulation, fraud, custody issues, and investor protection, which have led to previous rejections of similar applications.

The updated proposal aims to enhance transparency, liquidity, and security for investors, potentially alleviating some of the SEC’s concerns. The ETF will enable investors to trade shares that reflect Bitcoin’s price without the need to own or manage the cryptocurrency directly, offering a safer approach for institutional investors to participate in the volatile crypto market.

Fidelity’s decision to resubmit its application highlights its confidence in the long-term growth of digital assets and responds to increasing client demand for diverse investment options. CEO Abigail Johnson has actively supported the integration of cryptocurrencies into traditional finance, aiming to improve accessibility for investors.

Despite the SEC’s history of reluctance regarding Bitcoin ETFs, resulting in rejections or delays for firms such as VanEck and Valkyrie, Fidelity’s proposal is notable due to the firm’s strong reputation and resources. The crypto community and institutional investors are closely monitoring the SEC’s decision on Fidelity’s Bitcoin ETF, as it could potentially lead to greater demand for Bitcoin and other cryptocurrencies.