Fidelity Investments, an American financial services company, urged the U.S. Securities and Exchange Commission to approve its Bitcoin exchange-traded funds. The company stated that the regulator should approve the initiative because investors have been looking for digital assets in a significant increase.
Searching for the SEC’s Approval
A recent filing shows that Fidelity Investments, a multinational investment management company, pressured the U.S. Securities and Exchange Commission (SEC) to approve the Bitcoin exchange-traded funds (ETFs) at a private meeting on September 8. The conversation was held between the President of Fidelity Tom Jessop and six other executives from the company as well as numerous SEC officials.
Representatives of the firm cited several reasons why the watchdog should approve such a product. The Bitcoin market has seen a significant increase in trading volume. The firm’s representatives also mentioned the growing demand for digital asset services by investors. They would be able to get direct exposure to BTC through an exchange-traded service (ETP).
Fidelity executives also pointed out that similar funds have been approved by many other regulators, including those in Canada and Europe.
Fidelity began engaging in cryptocurrency trading back in 2014. Fidelity has invested resources in developing a wide range of digital assets capabilities including mining, custody and private BTC investments funds. Fidelity filed a March 2017 application to launch the Wise Origin Bitcoin Trust, a Bitcoin ETP.
Gary Gensler, the current Chairman of SEC, admitted recently that he is intrigued by cryptocurrency. He vowed, however, to be extremely cautious in order for investors in the space to have the best protection.
“While I am neutral on the technology and even curious, I spent three years teaching it and leaning into its potential – I am not neutral about investor protection. While it is up to the individual to decide whether they want to speculate, we as a nation have a responsibility to protect them from fraud.
Who else filed for a BTC ETF with the SEC?
Other companies are still waiting for approval from the SEC to open an exchange-traded funds (ETF), which could provide exposure to Bitcoin and other cryptocurrencies.
This is what happened with Goldman Sachs International Banking Group, which submitted a prospectus to the watchdog in March of this year.
The ETF could be exposed to cryptocurrency indirectly by investing in a grantor trust. “The ETF’s exposures to cryptocurrency could change over time. Accordingly, such exposure might not always be represented by the ETF’s portfolio.” – The filing.
VanEck, a global investment management firm, applied to the SEC for approval to issue a Bitcoin Strategy exchange traded fund. The firm submitted several Bitcoin ETFs previously to the agency, but without success.
Jan van Eck, the president and CEO of VanEck Investments, stated that VanEck customers are increasingly interested in such a financial instrument. He urged the SEC for approval.
“We believe the SEC should approve a Bitcoin ETF. Although it is impossible to predict the SEC’s actions, investors want a better access vehicle.
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