Fidelity Investments has walked the regulatory tightrope yet again with their renewal for a spot BTC Trust known as Wise Origin. This marks their second attempt, as the asset management giant rolled back into the long queue of hopeful spot fund applications this year, increasing the tally to seven spot BTC ETF applications in 2023.
This move follows on the heels of BlackRock, WisdomTree, Invesco, and Valkyrie— all having submitted their ETF applications in June. Ever the stalwart, Fidelity insists that the CME Bitcoin Futures market depicts a significant size of a regulated market which aligns with the spot bitcoin market— a point extensively supported by their research.
In its expansive 193-page application, Fidelity raised the alarm on the risk exposure that U.S. investor assets currently face by the absence of a Spot Bitcoin exchange-traded product (ETP). Investors seeking crypto asset exposure are arguably being driven towards riskier alternatives. Fidelity cited the now defunct FTX, Celsius, BlockFi, and Voyager Digital as examples of these perilous pathways investors might venture into, as well as the possibility of investors buying into businesses like Tesla and MicroStrategy, which are fundamentally unrelated but own significant BTC investments.
Yet, it’s not all doom and gloom. The submitted application holds promise with Fidelity Digital Assets Services— a regulated custodian licensed by the New York Department of Financial Services— responsible for the trust’s BTC custody. They’ve also partnered with a United States-based cryptocurrency exchange for surveillance-sharing. But, for all these positive strides, lets not forget that the SEC has yet to approve a single application for a spot BTC ETF. That being said, -folks in the crypto space are eyeing the space with cautious optimism, as it’s increasingly perceived that political pressure for the approval of a spot ETF is reaching fever pitch.
So, here we are again— the crypto world watching with bated breath as Fidelity makes its second pass at the BTC ETF. In the red corner, stands stringent regulation and restraint, still skeptical about the marriage of crypto and traditional finance. In the blue corner, we have financial powerhouses like Fidelity, persistently championing the legitimacy and utility of blockchain technology. Who will win the match is anyone’s guess. However, one thing remains certain— the blockchain future is here to stay.
Source: Cointelegraph
