Asset management giant Fidelity submits Bitcoin spot ETF application, following BlackRock's model.

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Fidelity Re-enters Bitcoin ETF Race

According to the filing with the U.S. Securities and Exchange Commission (SEC), asset management giant Fidelity has re-entered the competition for a Bitcoin spot ETF. This move comes as other major firms like BlackRock, WisdomTree, and Invesco have submitted similar filings in recent weeks.

Details of Wise Origin Bitcoin Trust Fund

The fund, known as the Wise Origin Bitcoin Trust, is sponsored by FD Funds Management LLC, with Fidelity Digital Assets Services set to custody the Bitcoin for the trust.

Fidelity's View on Digital Assets

According to The Block, a spokesperson for Fidelity stated that many clients are interested in digital assets and hold related assets. Fidelity has been committed to providing a range of solutions for clients, offering choices, and providing education and support.

Challenges and Opportunities for a Bitcoin Spot ETF

Despite much attention, the SEC has yet to approve any Bitcoin spot ETF.

Ark Investment and 21Shares have been attempting to register a Bitcoin spot fund since 2021. On the other hand, the SEC previously rejected Grayscale's proposal to convert its flagship GBTC fund into a spot ETF.

Recap: Ark Investment and 21Shares apply for Bitcoin spot ETF for the third time

Recap: SEC rejects Grayscale's registration application

Influx of Bitcoin Spot ETF Filings Leads to Price Surge in BTC

Since BlackRock submitted its filing on 6/15, the price of Bitcoin has surged from the $25K level to $30K.

Fidelity Adopts "Surveillance Sharing Agreement" Approach

Since 2021, Fidelity has been filing for the Wise Origin Bitcoin spot ETF, but BlackRock's filing method has prompted other long-standing institutions to follow suit. BlackRock's latest filing mentions a "surveillance sharing agreement" mechanism, which Fidelity has also included in its application.

Learn more about "surveillance sharing agreements": Will BlackRock's Surveillance Sharing Agreement Lead the Way for Spot ETFs?

Fidelity and EDX Markets

Beyond ETFs, Fidelity has recently invested in EDX Markets along with traditional institutions like Citadel Securities, Charles Schwab, and Virtu. EDX uses third-party banks and cryptocurrency custodians to safeguard user assets, settle cryptocurrency and cash between brokers after trades on EDX, and is not open to retail investors but rather to broker participation.

This initiative is seen as a positive sign for traditional institutions' confidence in the digital asset market.