FIDELITY WITH $4.2 TRILLION AUMIS FILING FOR SPOT BITCOIN ETF

FIDELITY WITH $4.2 TRILLION AUM

IS FILING FOR SPOT BITCOIN ETF

BlackRock’s application had sparked a surge in the price of bitcoin to a 1-year high. On Tuesday, it was up 2.2%.

Fidelity did not immediately respond to a Reuters request for comment.

Fidelity Investments, one of the largest asset managers in the world, has announced its intention to file for a spot bitcoin exchange-traded fund (ETF) in the US. The company said it plans to submit an application to the Securities and Exchange Commission (SEC) in the coming weeks.

A spot bitcoin ETF is a type of investment product that tracks the price of bitcoin directly, rather than through derivatives or other instruments. It allows investors to gain exposure to the cryptocurrency without having to buy, store, or manage it themselves. A spot bitcoin ETF would also provide more transparency and liquidity to the bitcoin market, as well as lower fees and risks for investors.

The filings have been viewed as a vote of confidence for the crypto space, reigniting some retail interest in the industry which had felt renewed pressure after Binance and Coinbase Global, two of the biggest crypto exchanges, came under fire from the U.S. Securities and Exchange Commission.

However, Fidelity believes that it has the expertise and resources to address these issues and meet the SEC’s standards. The company has been involved in the cryptocurrency space since 2014, when it launched Fidelity Digital Assets, a subsidiary that offers custody and trading services for institutional clients. Fidelity also has a strong reputation and track record in the traditional financial industry, managing over $10 trillion in assets for more than 35 million customers.