Fidelity Submits Revised Application for Bitcoin ETF Amid Increasing Confidence Regarding Approval

Fidelity Investments, one of the world’s largest asset management firms, has filed an amendment application to its proposed spot Bitcoin (BTC) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). 

In a Wednesday post on X (formerly Twitter), Bloomberg senior ETF analyst Eric Balchunas revealed that Fidelity has filed a revised version of its Wise Origin Bitcoin Trust.

Now Fidelity has filed an amended application. Three issuers down, six-ish to go.. https://t.co/47Aw37MDTa

— Eric Balchunas (@EricBalchunas) October 17, 2023

The amendment addresses crucial aspects such as the secure custody of customers’ Bitcoin holdings and the disclosure of risks associated with the regulatory landscape surrounding cryptocurrencies.

Fidelity’s move follows similar actions by Ark Invest and Invesco, who recently amended their own filings for spot Bitcoin ETFs. 

These developments indicate ongoing discussions between prospective ETF providers and the SEC, leading to a surge in optimistic sentiment among traders and market observers.

James Seyffart, a research analyst at Bloomberg Intelligence, claimed that the communication and amendments between potential Bitcoin ETF issuers and the SEC are positive signs that the approval process is progressing.

“More proof that potential spot Bitcoin ETF issuers are in communication with SEC regarding changes/amendments required for SEC to consider approving,” Seyffart posted on X.

“Positive signs (in my opinion).”

Analysts Expect Spot Bitcoin ETF to Hit Markets Soon

As reported, the SEC has seemingly conceded its battle against a Bitcoin ETF as the deadline for an appeal passed on Friday. 

With the agency’s inability to appeal a key court ruling, many now predict that a Bitcoin ETF will soon make its way to the market, potentially as early as January 10.

The SEC’s decision not to challenge the August court ruling in the case of Grayscale vs. SEC is unlikely to be a result of a change of heart by Chair Gary Gensler. 

Rather, it is believed that the agency’s limited legal resources, coupled with the court’s dismantling of the SEC’s justification for denying the ETF, led to their decision to fold their cards.

Meanwhile, the anticipation of a spot Bitcoin ETF gaining regulatory approval has sparked speculation among industry insiders. 

Some firms predict that its approval could add a staggering $1 trillion to the current market capitalization of cryptocurrencies, which currently stands at $1.1 trillion, within the next few months.

Earlier this week, rumors of an imminent spot Bitcoin ETF approval circulated, causing a nearly 10% surge in Bitcoin’s price. 

BlackRock CEO Larry Fink attributed the recent rally in Bitcoin’s price to the increasing interest and demand for cryptocurrencies. 

Fink made these remarks in response to a false news report about the approval of a spot ETF, which temporarily triggered a surge in Bitcoin’s value.

While Fink refrained from commenting on BlackRock’s own application for a spot Bitcoin ETF, he acknowledged that clients from around the world have been expressing the need for crypto. 

“Some of this rally is way beyond the rumor. I think the rally today is about a flight to quality, with all the issues around the Israeli war now, global terrorism,” Fink said.