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$5 trillion asset manager Fidelity applies for Bitcoin ETF

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Liam Frost

FD Funds Management, a subsidiary of Fidelity Investments (which manages over $4.9 trillion in assets), yesterday filed a preliminary registration with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin (BTC) exchange-traded fund (ETF).

“The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions. An increasingly wide range of investors seeking access to bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets,” Fidelity added in an email.

ETFs track the prices of certain underlying assets—Bitcoin in this case—and could allow investors to get exposure to the crypto’s price volatility via shares without actually holding it.

The fund, dubbed Wise Origin Bitcoin Trust, would hold BTC and value it based on prices from major crypto exchanges such as Bitstamp, Coinbase, Gemini, itBit, and Kraken, the filing explained. Fidelity Digital Assets, a crypto-focused arm of Fidelity Investments, is expected to act as the fund’s custodian, while FD Funds Management is listed as a sponsor.

If approved, Wise Origin Bitcoin Trust could become a major milestone for the adoption of cryptocurrencies by institutional investors. However, Fidelity is far from the first and only firm to apply for such a fund, but the SEC kept turning all similar applications down over the past few years.

Applications for Bitcoin ETFs keep piling up

As CryptoSlate reported, investment advisory firm First Trust Advisors and hedge fund SkyBridge Capital, led by former White House communications director Anthony Scaramucci, have filed a similar application with the SEC recently.

Their joint fund, dubbed First Trust SkyBridge Bitcoin ETF Trust, is expected to be listed on the New York Stock Exchange’s Arca platform.

Last week, the SEC has also acknowledged a Bitcoin ETF proposal by asset management company VanEck. Since the filing day, the regulator has 45 days to approve or decline the application. In the past, VanEck has already made several attempts to launch a Bitcoin ETF.

Meanwhile, three Bitcoin ETFs have recently been approved in Canada and another one—in Brazil. QR Capital Group, the company behind the latter, previously expressed hope that emerging Bitcoin ETF around the world could help pave the way for similar products in the U.S.

“This is because the Comissão de Valores Mobiliários [Brazil’s regulator], as well as the U.S. Securities and Exchange Commission, is an affiliated member of the International Organization of Securities Commissions,” QR Capital noted in its announcement.

But so far, the title of America’s first-ever Bitcoin ETF is still up for grabs.

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“Bitcoin maximalists? They can’t stop innovation,” says Mati Greenspan

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Cointelegraph By Marco Castrovilli

In an exclusive interview with Cointelegraph during Bitcoin 2021 in Miami, Greenspan criticized a segment of Bitcoin (BTC) maximalists for being “small-minded and insecure,” pointing out that they don’t have control over the main cryptocurrency.

“They cannot stop any kind of innovation from happening. So let them yap, it doesn’t bother me,” said Mati Greenspan, founder and CEO of Quantum Economics, about Bitcoin maximalists. 

Greenspan‘s statements came a few days after a number of Bitcoin hardliners attacked him on Twitter for calling the Bitcoin conference in Miami “a crypto conference.”

Greenspan’s inclusive view on crypto is also reflected in his diversified investment portfolio. When asked about it, Greenspan pointed out that Dogecoin (DOGE) is his top holding on eToro. “Why not?” he said. “It’s funny!”

Check out the full interview on our YouTube channel, and don’t forget to subscribe!