Fidelity refiles for a Bitcoin spot ETF, mimicking structure of BlackRock filing

Fidelity, one of the largest asset managers in the U.S., refiled paperwork for a Bitcoin spot ETF on Thursday after the Securities and Exchange Commission rejected its prior application in 2022.

In its refiling, the asset manager said that it would enter into surveillance-sharing agreement with an unnamed “operator of a United States-based spot trading platform for Bitcoin.”

The asset manager’s emphasis on surveillance-sharing mirrors BlackRock’s application in mid-June, which specified that Nasdaq—the operator of eponymous stock exchange—would surveil the Bitcoin market to ensure that there was no market manipulation. On Wednesday, Cathie Wood’s ARK Invest also updated its ETF application to include a surveillance-sharing agreement. Concern over market manipulation is an oft-cited reason the SEC has used to reject Bitcoin spot ETF applications.

“A meaningful portion of our customers are interested in and own digital assets,” a spokesperson said in a statement. “Fidelity remains committed to providing customers with a portfolio of solutions that offer choice, accompanied by education and support.”

So far the following incumbents filed – Blackrock, Fidelity, Arc with almost identical structures & surveillance.
Makes one wonder what signals they got from the SEC that it’ll be approved & what a sleazy out this might be for Gensler https://t.co/CLWkH7TCx9

— Maya Zehavi (@mayazi) June 29, 2023

The firm’s refiling joins a slew of other filings from asset managers in the past two weeks after BlackRock’s ETF submission became public. Since the U.S.’s largest asset manager gave Bitcoin a resounding seal of approval, WisdomTree, Invesco, and Valkyrie have all either resubmitted or updated existing applications.

The price of Bitcoin remained relatively steady after news of Fidelity’s application became public, rising slightly from about $30,450 to almost $30,600 as of Wednesday afternoon. (The Block had previously reported that the asset manager had plans to refile, and Bitcoin’s price jumped above $31,000 shortly afterwards.)

But, despite Bitcoin’s relative steadiness as of Wednesday afternoon, Fidelity’s ETF application is sure to add more fuel to a Wall Street-led fervor for Bitcoin that has buoyed a crypto market that once seemed on the precipice after the SEC’s lawsuits against Binance and Coinbase.