The United States Securities and Exchange Commission (SEC) has rejected numerous Bitcoin ETF applications in the past. However, that hasn’t stopped asset managers and investment firms from applying again.
More Asset Managers are Entering the Crypto Space
Fidelity, the fourth-largest asset manager in the world with more than $4 trillion in assets under management, has applied to launch a physical spot Bitcoin ETF in Canada. The ETF will track Bitcoin’s spot price, giving investors exposure to the leading cryptocurrency.
According to the Financial Times, the Fidelity Advantage Bitcoin ETF (FBTC) is designed to invest in “physical” spot bitcoin. This latest development comes just a few weeks after the US SEC rejected VanEck’s Bitcoin ETF proposal.
Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research, stated that “It’s significant because the top-tier asset managers tend to be fast followers,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research. “They tend to take more of a wait-and-see approach towards investment trends, piggybacking on developments that have often been created by smaller, more nimble asset managers.”
The US is Still Behind on spot Bitcoin ETF
Fidelity has applied to launch a spot Bitcoin ETF in the United States, but the SEC is yet to approve the application. The US SEC has rejected numerous spot Bitcoin ETF proposals in the past, most recently the VanEck application.
According to the SEC, the cryptocurrency market is not ready for a spot Bitcoin ETF at the moment. The SEC had mentioned on numerous occasions that it still has concerns regarding the cryptocurrency market, especially in terms of price manipulation.
The regulatory agency had approved three Bitcoin futures ETFs. These funds track Bitcoin futures instead of the cryptocurrency’s spot price. The Bitcoin futures ETFs in the United States are; ProShares Bitcoin Strategy ETF (BITO), Valkyrie Bitcoin Strategy ETF (BTF) and VanEck Bitcoin Strategy ETF (XBTF).
Despite its rejection, market analysts and asset managers believe it is a matter of time before the SEC approves a spot Bitcoin ETF.