The American financial services corporation – Fidelity Investments – urged the U.S. Securities and Exchange Commission (SEC) to approve its Bitcoin exchange-traded fund. According to the company, the regulator should allow the initiative as investors’ demand for digital assets has significantly increased recently.
Looking for The SEC’s Approval
According to a recent filing, the multinational investment management giant – Fidelity Investments – pressured the U.S. Securities and Exchange Commission to approve its Bitcoin exchange-traded fund (ETF) during a private meeting held on September 8th. Participants in the conversation were the President of Fidelity Tom Jessop, six other executives of the company, and numerous SEC officials.
The firm’s representatives cited many reasons why the watchdog should greenlight such a product The Bitcoin market has significantly increased its trading volume. They also brought up the surging appetite for digital asset services from investors, who would benefit from the opportunity to have direct exposure to BTC via an exchange-traded product (ETP).
Lastly, Fidelity’s executives pointed out that many regulators around the globe, such as Canada and some European nations, have already approved similar funds.
It is worth noting that Fidelity started engaging with cryptocurrencies back in 2014. Since then, the firm has committed resources to develop a broad set of digital asset capabilities, including custody, mining, and private BTC investment funds. In March this year, Fidelity filed to launch a Bitcoin ETP called the Wise Origin Bitcoin Trust.
Recently, Gary Gensler – the current Chairman of the SEC – admitted that he is “intrigued” by the cryptocurrency space. However, as the leader of the organization, he vowed to be highly cautious so investors in the field could have maximum protection:
“While I’m neutral on the technology, even intrigued, I spend three years teaching it, leaning into it – I’m not neutral about investor protection. If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud.”
Who Else Filed for a BTC ETF with The SEC?
Several other companies are also waiting for the SEC’s approval to launch an exchange-traded fund (ETF) that could offer exposure to bitcoin and other cryptocurrencies.
Such is the example with the international banking giant Goldman Sachs, which filed a prospectus with the watchdog in March this year.
“The ETF may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the ETF’s portfolio.” – reads the filing.
In August, the global investment management company VanEck also sought the SEC’s approval to release a Bitcoin Strategy exchange-traded fund. Interestingly, the firm has previously submitted numerous Bitcoin ETFs to the agency, but to no avail so far.
With its latest attempt, the president of the investment company – Jan van Eck – asserted that VanEck’s customers have a growing appetite for such a financial instrument and urged the SEC to approve it:
“We really think the SEC should approve a Bitcoin ETF. Can’t predict what the SEC will do, but investors are really asking for a more efficient access vehicle.”