The SEC rejected dozens of spot Bitcoin ETF applications in the past few years, including one from Fidelity in January 2022.
Fidelity is one of the several big asset managers that have applied to list bitcoin ETFs in recent weeks. BlackRock, WisdomTree, Invesco, and VanEck also submitted paperwork for spotting bitcoin ETFs on Cboe BZX, Nasdaq, and NYSE Arca, which is owned by Intercontinental Exchange Inc.
According to a filing by listing exchange Cboe Global Markets with the US Securities and Exchange Commission, asset manager Fidelity is once again seeking to list and trade shares of its Wise Origin Bitcoin Trust spot bitcoin exchange-traded fund.
Bitcoin had struggled to gain traction after a series of crypto company meltdowns, including the sudden collapse of exchange FTX late last year, which according to authorities was running a multi-billion dollar fraud.
A regulatory crackdown has also weighed on the crypto sector. Crypto exchanges, Binance and Coinbase Global, were sued by the SEC this month for allegedly violating its rules, which the pair deny.
The SEC has rejected dozens of spot bitcoin ETF applications in the past few years, including one from Fidelity in January 2022. In all cases, the regulator said the filings did not meet standards designed to prevent fraudulent and manipulative practices and protect investors and the public interest.
The first bitcoin futures ETF was approved in October 2021, which helped sending the volatile bitcoin to an all-time high of $69,000 (roughly Rs. 5,661,629) in November 2021, and raising hopes that a spot bitcoin ETF would soon be approved.
Spot ETFs directly track the price of the cryptocurrency, while futures-based ETFs follow the price of bitcoin futures contracts.
