Fidelity seeks Bitcoin ETF with new SEC filing

Boston-based investment giant Fidelity has once again filed an application for a Bitcoin exchange-traded fund (ETF).

In a Thursday filing with the U.S. Securities and Exchange Commission (SEC), the asset manager stated that its Wise Bitcoin Trust, a Bitcoin-backed ETF, would help U.S. investors avoid risks.

The filing emphasized that the lack of a Bitcoin spot ETF exposes U.S. investors to significant risk, as those seeking exposure to cryptocurrencies through an ETF are forced to resort to riskier alternatives, such as collapsed cryptocurrency exchanges like FTX.

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This filing comes after the world’s largest asset manager, BlackRock, submitted its own Bitcoin ETF application to the SEC earlier this month. Other companies, including Invesco, Wisdom Tree, Valkyrie, and Bitwise, have also submitted similar requests.

An ETF is an investment vehicle that tracks the value of an underlying asset, such as gold, foreign currencies, or Bitcoin.

To date, there is no Bitcoin spot ETF backed by the cryptocurrency in the United States, and several investment firms have filed applications in an effort to overcome rejection by the primary Wall Street regulator.

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What does it imply for venture capital in the sector?

• A Bitcoin ETF backed by a renowned company like Fidelity could increase the legitimacy and adoption of cryptocurrencies, potentially generating greater investor interest in the blockchain technology sector and cryptocurrency-related companies.
• This could lead to an increase in the availability of venture capital for startups and projects related to cryptocurrencies, driving innovation and development in the sector.
• A Bitcoin ETF could also provide institutional investors with a more accessible way to participate in the cryptocurrency market, attracting further investment and generating additional growth in the venture capital ecosystem of the sector.

What does it imply for technology startups?

• The approval of a Bitcoin ETF backed by Fidelity and other major players could attract a greater flow of capital towards cryptocurrency-related technology startups. This could mean more funding opportunities for these startups, allowing them to accelerate their growth and development.
• A Bitcoin ETF could also increase the visibility and recognition of cryptocurrencies in the financial market, generating greater investor interest and facilitating partnerships and collaborations between technology startups and established players in the sector.
• The availability of a regulated and more accessible investment vehicle like a Bitcoin ETF could attract institutional and traditional investors who were previously skeptical or faced barriers to enter the cryptocurrency market. This could open up new funding and growth opportunities for technology startups, as well as foster greater adoption and application of blockchain technology in different industries.

To read the information in detail, visit: Bloomberg Línea