BlackRock, the world’s largest asset manager, filed paperwork last week with the U.S. Securities and Exchange Commission (SEC) for the formation of a spot bitcoin (BTC) exchange-traded fund (ETF).
Although the SEC, which oversees ETFs in the United States, has continuously denied all applications for spot bitcoin ETFs, experts say BlackRock’s proposed investment vehicle has a better chance of getting a green light owing to the fund management giant’s strong political connections and its huge success rate with ETF applications.
Hopes surrounding a potential spot Bitcoin ETF by BlackRock sparked a bullish sentiment among Bitcoin investors after the news became public last Thursday. And if there is any truth in the rumours swirling around, then Bitcoin could be on the brink of another bullish boost fuelled by another financial giant. Rumours suggest that U.S.-based financial services firm Fidelity Investments could soon follow in BlackRock’s footsteps and register a spot Bitcoin ETF with the SEC. Fidelity could also bid for Digital Currency Group subsidiary, Grayscale.
Fidelity Next To Attempt To Register Spot Bitcoin ETF In The U.S.?
For approximately 10 years, crypto company after crypto company has tried its luck with the SEC. Now Wall Street’s heaviest hitters are lending their weight.
In a June 18 tweet, Arch Public co-founder Andrew Parish suggested that Fidelity Investments is readying to take a giant step toward a spot bitcoin ETF, days after BlackRock announced its application. Parish indicated that Fidelity was about to make a “seismic move” in the crypto space.
An ETF is an investment vehicle that tracks the price performance of an underlying asset, such as gold, foreign currencies, or bitcoin. Perhaps most importantly, ETFs mirror the value of an underlying asset without an investor having to buy the asset itself.
Parish also claimed Fidelity could soon acquire Grayscale, the fund manager that is currently in a legal standoff with the SEC after the securities regulator denied an application to convert its flagship Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund.
He said he wouldn’t be surprised to see Fidelity offer staking services real soon.
The question remains, when will the U.S. see its first spot Bitcoin ETF?
Super Bullish For Bitcoin Amid SEC Crackdown
Notably, BlackRock’s ETF application and the alleged incoming Fidelity filing come at a strange time: The SEC this year has pursued legal recourse against crypto firms such as Kraken, Coinbase, and Binance for what it considers unregistered securities relating to a slew of digital assets listed on the exchanges.
Nevertheless, BlackRock’s and Fidelity’s foray into the bitcoin market can be deemed bullish events that will drive investors’ confidence in the crypto industry. Being the biggest asset manager in the world, a BlackRock-sponsored spot bitcoin ETF would bring an air of legitimacy and that air should generate a heavy inflow of capital. Maybe that would supercharge the price of Bitcoin.
Whether this means the BTC price goes up or down, approval of the BlackRock and Fidelity applications will be a big moment for crypto.
