Fidelity preparing to submit spot bitcoin ETF filing: Source

Quick Take

  • Wall Street titan Fidelity is expected to submit its own filing for a spot bitcoin ETF, a source tells The Block.
  • This will put it in the recent ETF race kicked off by BlackRock earlier this month.

Asset management giant Fidelity is close to submitting its own filing for a spot bitcoin exchange-traded fund, joining a long list of issuers keen to be first to market with such a product. 

A source familiar with the firm's plans says that it could submit its filing as soon as Tuesday, following the lead of asset management giant BlackRock.

BlackRock's June 15 filing has been followed by other asset managers looking to launch their own spot bitcoin funds including Invesco, WisdomTree and Bitwise.

This will be Fidelity's second attempt at such a product. In 2021, it filed for a bitcoin spot exchange-traded fund called the Wise Origin Bitcoin Trust but was denied by the U.S. Securities and Exchange Commission in early 2022.

Fidelity declined to comment when contacted by The Block. 

The promise of a bitcoin ETF

The launch of a spot bitcoin ETF has been described as a gamechanger among market pundits since it can provide a way for investors to get exposure to the market without having to deal with the underlying asset. BlackRock's filing specifically has been pointed out as significant given the firm's size and significance in global markets. 

"BlackRock’s decision to file for a Bitcoin ETF signals that large institutional players are positive on the long-term outlook for the digital asset," Ark analyst Yassine Elmandjra wrote.

Fidelity is also a powerhouse, with tens of millions of retail brokerage clients and over $11 trillion in assets under its administration. The firm is also no stranger to crypto as it has operated an institutional custody and trading services business in the market since 2018. 

On the asset management side of the house, it has offered fund products to European clients via Fidelity International since February 2022.

Related news: The multi-billion dollar question posed by BlackRock's bitcoin ETF move.

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