Sunday, July 21, 2024

Fidelity has resubmitted an enhanced proposal for its Wise Origin Bitcoin Trust, a spot bitcoin exchange-traded fund (ETF), to the United States Securities and Exchange Commission (SEC). By doing so, the asset management firm joins other organizations in ongoing endeavors to resolve the regulatory hurdles that have prevented the endorsement of such an investment vehicle.

Updated Spot Bitcoin ETF Application by Fidelity Filed with SEC

Fidelity, the financial behemoth, has tabled an amended version of its Wise Origin Bitcoin Trust proposal to the United States regulatory body responsible for securities. This revised spot Bitcoin ETF application aims to align with SEC standards, thereby potentially increasing the likelihood of receiving regulatory approval.

In the wake of this recent submission, Fidelity has joined other would-be issuers like Invesco and Ark Invest, who had resubmitted their respective applications earlier in October to address regulatory apprehensions.

Bloomberg’s ETF analyst, James Seyffart, perceives these activities as favorable indicators. Seyffart recently commented on this development via a post on platform X, previously known as Twitter:

These developments substantiate that prospective spot Bitcoin ETF issuers are actively engaging with the SEC concerning the necessary modifications or amendments required for regulatory approval. Such signs are indeed encouraging.

Legal expert Scott Johnsson, in the financial sector, disseminated a tweet highlighting recurring themes manifest in these revised applications. Notable points include a detailed description of custodial arrangements, the mechanics concerning hard forks, compliance with Generally Accepted Accounting Principles (GAAP) in valuation and pricing sources, disclosure of risks pertaining to regulatory uncertainty, and discussion around the high energy consumption involved in cryptocurrency mining.

Regulatory Background on Spot Bitcoin ETFs in the United States

In 2021, the U.S. Securities and Exchange Commission did grant approval to ETFs based on bitcoin futures but has thus far been reticent to approve a spot Bitcoin ETF. The agency has previously cited concerns about potential fraud, market manipulation, and issues regarding investor protection and custody.

Earlier this year, the SEC began the review of multiple applications, including those from major financial entities like Fidelity, Blackrock, Vaneck, Wisdomtree, Valkyrie, Bitwise, and Invesco. However, decisions on these applications have been deferred.

Many industry stakeholders anticipate the Commission’s verdict on one or more ETF proposals to be rendered in the first quarter of the forthcoming year. Factors contributing to this optimism include recent events such as the SEC missing its deadline to appeal a court ruling in favor of Grayscale’s spot Bitcoin ETF. Fueling this anticipation further, the cryptocurrency Bitcoin (BTC) experienced a surge in value this week following incorrect news that Blackrock’s Bitcoin ETF had received approval.

What are your views on the likelihood of the SEC approving these updated spot Bitcoin ETF applications? Feel free to share your insights in the comments section below.

Frequently Asked Questions (FAQs) about Fidelity Spot Bitcoin ETF

What is the main focus of the text?

The main focus of the text is Fidelity’s resubmission of an updated proposal for a spot Bitcoin exchange-traded fund (ETF) to the United States Securities and Exchange Commission (SEC). The text outlines Fidelity’s efforts to meet SEC requirements in hopes of receiving regulatory approval.

Who are the other companies that have also updated their applications?

In addition to Fidelity, Invesco and Ark Invest have also refiled their spot Bitcoin ETF applications with the SEC earlier in October.

What are the recurrent themes observed in the amended applications?

The recurrent themes in the amended applications include detailing custodial arrangements, addressing the mechanics of hard forks, adhering to Generally Accepted Accounting Principles (GAAP) for valuation and pricing, disclosing regulatory uncertainty risks, and commenting on the high energy consumption involved in cryptocurrency mining.

Why has the SEC been reluctant to approve a spot Bitcoin ETF?

The SEC has previously cited multiple concerns as reasons for their reluctance, including risks of fraud, market manipulation, and issues related to custody and investor protection.

What is the timeline expected for the SEC’s decision on the spot Bitcoin ETFs?

Many industry experts anticipate that the SEC will make a decision on one or more spot Bitcoin ETF proposals in the first quarter of the next year.

What recent events have contributed to industry optimism regarding spot Bitcoin ETF approvals?

The SEC’s recent failure to meet the deadline for appealing a court ruling in favor of Grayscale’s spot Bitcoin ETF has been cited as a contributing factor for industry optimism. Additionally, the cryptocurrency Bitcoin (BTC) experienced a surge in value following incorrect news that Blackrock’s Bitcoin ETF had been approved.

What platforms were used to share expert opinions on the topic?

James Seyffart, an ETF analyst from Bloomberg, shared his views on a platform previously known as Twitter, now called X. Finance Lawyer Scott Johnsson also used this platform to highlight several themes in the amended applications.

Is there a public opinion or sentiment shared in the text regarding the likelihood of approval?

The text does not explicitly state a public opinion on the likelihood of approval, but it does mention that there are “favorable indicators” and “cause for optimism” regarding the SEC potentially approving updated spot Bitcoin ETF applications.

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JohnDoe123 October 19, 2023 - 7:59 pm

Wow, Fidelity’s back at it again huh? This time they might just get the green light. Fingers crossed!

MarketMaven October 19, 2023 - 9:58 pm

If Fidelity gets the approval, expect a huge influx of traditional investors in crypto. This is big!

FinGuru October 19, 2023 - 10:04 pm

this is clearly a sign of growing maturity in the crypto market. The emphasis on adhering to GAAP and detailed custodial arrangements is promising.

WallStreetWiz October 20, 2023 - 2:20 am

What’s taking the SEC so long? It’s about time they give the nod. The rest of the world’s moving ahead.

LegalEagle October 20, 2023 - 3:11 am

Scott Johnsson’s points are spot on. Legal complexities around hard forks and custody have to be ironed out. It’s high time.

EcoWarrior October 20, 2023 - 7:48 am

Still concerned bout the energy consumption part. Hope they address it more in depth in future.

TechNerd October 20, 2023 - 9:40 am

Its not just Fidelity, guys. Other big names are in the queue. Whoever gets the approval first will set the benchmark. So, let’s wait n see.

CryptoQueen October 20, 2023 - 12:57 pm

Regulatory hurdles are no joke, but it’s a big deal that heavy hitters like Fidelity are still pushin. SEC needs to move!


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