Saturday, September 23, 2023

Bitcoin nears one-year high as Fidelity reportedly eye spot ETF -Dlight News

(Bloomberg) – Bitcoin is hovering around its one-year high as asset manager Fidelity reportedly prepares its spot exchange-traded fund application for the digital asset.

The world’s largest cryptocurrency was trading at $30,855 as of 10:25 a.m. in New York, on an uptrend closer to the digital asset’s 52-year high of $31,411 on June 23.

According to a report by crypto trading publication The Block, citing an unnamed source, Fidelity is expected to file an application for a spot bitcoin ETF. The company can submit its application as early as Tuesday, the report said.

“A true spot ETF would open the door for new money flows, which would create a trickle-down effect in terms of volume and rates,” said Darius Tabatabai, co-founder of the decentralized exchange Vertex Protocol.

This is Fidelity’s second attempt at a Bitcoin ETF. Fidelity’s application for the Wise Origin Bitcoin Trust was denied by the U.S. Securities and Exchange Commission in 2021.

Fidelity spokeswoman Meghan Joumas declined to comment.

Asset management giant BlackRock Inc. filed its application last week Application for a spot bitcoin ETF that took bitcoin to a new high this year. There was about 30 attempts according to a tally by Bloomberg Intelligence since last week for a spot bitcoin product.

Investment products for digital assets seen biggest weekly inflows in nearly a year, adding $199 million last week as a spate of applications for spot bitcoin ETFs in the US reignited interest in the space following a crackdown by US regulators.

“Fidelity’s application for a Bitcoin ETF amid the latest phase of regulatory scrutiny brings a much-needed positive outlook for the crypto industry,” said Jaime Baeza, founder of crypto hedge fund ANB Investments. “Despite the regulatory challenges in the US, the actions of leading traditional financial institutions such as BlackRock and Fidelity mean that institutional interest and involvement remain, giving credibility and potential stability to the market.”

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