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Bitcoin nears 1-year high as Fidelity reportedly eyes exchange-traded fund

This is Fidelity's second attempt for a Bitcoin ETF

Bitcoin

Photo: Bloomberg

Bloomberg

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By David Pan

Bitcoin is hovering around its one-year high as asset manager Fidelity reportedly readies its filing for a spot exchange-traded fund for the digital asset. 
 
The world’s largest cryptocurrency traded at $30,855 at 10:25 a.m. in New York and is treading upward, nearing the digital asset’s 52-year high of $31,411 on June 23. 

The rally comes as Fidelity is expected to submit a filing for a spot Bitcoin ETF, according to a report by crypto trade publication The Block, citing an unnamed source. The firm could submit its filing as soon as Tuesday, the report said.

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“A genuine spot ETF would open up the door to flows of new cash which would drive a trickle-down effect in terms of volumes and interest,” said Darius Tabatabai, co-founder at decentralized exchange Vertex Protocol. 

This is Fidelity’s second attempt for a Bitcoin ETF. Fidelity’s application for the Wise Origin Bitcoin Trust was denied by the US Securities and Exchange Commission in 2021. 

Fidelity spokesperson Meghan Joumas declined to comment.

Last week, asset management giant BlackRock Inc. filed its application for a spot Bitcoin ETF, which sent Bitcoin to a new high this year. There have been about 30 attempts for a spot-Bitcoin product as of last week, according to a tally by Bloomberg Intelligence. 

Digital-asset investment products saw the biggest weekly inflows in nearly a year, adding $199 million last week, as a flurry of applications for spot-Bitcoin ETFs in the US rekindled interest in the space after a crackdown by US regulators. 

“Fidelity’s filing for a Bitcoin ETF, amid the recent period of regulatory scrutiny, brings a much-needed positive outlook to the crypto industry,” said Jaime Baeza, founder of crypto hedge fund ANB Investments. “Despite the regulatory challenges in the US, the moves by top traditional financial institutions such as BlackRock and Fidelity signify that institutional interest and participation remain, injecting credibility and potential stability into the market.”  

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First Published: Jun 27 2023 | 10:24 PM IST

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