Fidelity Investments Pushed SEC to Approve Bitcoin ETF

Divya  |  Sep 15, 2021

Fidelity Investments reportedly pushed the US Securities and Exchange Commission (SEC) to approve its Bitcoin exchange-traded fund (ETF) in a private meeting recently. 

Fidelity Investment Urges SEC to Approve Bitcoin ETF

Multinational financial services firm Fidelity Investment tried to persuade the SEC to clear its Bitcoin ETF application in a private meeting. According to a Bloomberg report, the attempt was made during a September 8 video call between Fidelity Digital Assets’ president Tom Jessop and SEC officials.

A presentation from the meeting shows that Fidelity touted its product while citing increased investor demand for virtual currencies, the growing number of Bitcoin owners, and the presence of similar products in other countries. 

“Bitcoin futures-based products are not a necessary interim step before a Bitcoin ETP,” Fidelity highlighted in the presentation. “Firms should be able to meet investor demand for direct exposure to Bitcoin because the Bitcoin market has matured and can support them.”

Fidelity had applied for Bitcoin ETF, called the Wise Origin Bitcoin Trust, in March, which is still pending approval along with other applicants such as VanEck, SkyBridge Capital, and Ark Investment Management.

Pointing to the soaring demand for Bitcoin exposure among investors, Fidelity spokeswoman Nicole Abbott told Bloomberg:

“An increasingly wide range of investors seeking access to Bitcoin has underscored the market need for a more diversified set of products offering exposure to digital assets to match demand.”

The State of Bitcoin ETFs in Other Countries

While the SEC is still hesitating to greenlight a Bitcoin ETF, other countries such as Canada and Brazil are offering not only Bitcoin but Ethereum-based products as well. 

In February, Purpose Investments became the first company in North America to offer a Bitcoin ETF after Ontario Securities Commission granted it the necessary permissions. The regulator has also permitted Evolve Investment Company and CI Global Asset Management to introduce Bitcoin and Ethereum ETFs in the country.

Like Canada, Brazil has shown a liberal attitude towards ETFs. The country approved its first Bitcoin ETF in June and has since given its nod to several such products.

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