Bitcoin ETF applications from Fidelity and SkyBridge Capital under formal review by SEC

The United States Securities & Exchange Commission is reviewing two more applications for Bitcoin exchange-traded funds (ETFs).

SEC kick-starts 45-day clock

According to a recent filing, the SEC is looking into a Bitcoin ETF request from Fidelity Investments. With $4.9 million in assets under management filed for the fund in late March, the firm would offer indirect exposure to the leading cryptocurrency. 

Fidelity has planned to provide financial backing for the ETF – the Wise Origin Bitcoin Trust – in preparation for launching its own Bitcoin fund. 

The Bitcoin ETF would track the performance of the pioneer cryptocurrency as measured by the movement of the Fidelity Bitcoin Index. The trust would  allow the asset manager to provide more ways for institutional investors to get into the crypto market. 

Another filing further revealed that SkyBridge Capital’s Bitcoin ETF application is also under review by the SEC. While SkyBridge’s offering would trade on the New York Stock Exchange, Wise Origin would trade on Cboe’s BZX Exchange.

The agency will move to an initial decision on the applications within 45 days unless it decides to extend the window, which could take up to a maximum of 240 days. 

The two applications join four other ETFs under official review, while ten more are still pending. The Bitcoin ETFs under official review include VanEck and Wisdom Tree. VanEck filed its application in December 2020, and the SEC extended the decision window by 45 additional days, with the deadline set on June 17. 

While VanEck has tried to get filings approved in the past, there had been no luck. So far, no Bitcoin ETFs have been approved by the SEC. Ex-chairman of the agency, Jay Clayton, said that the market should not have an ETF, citing the crypto market was prone to market manipulation. 

Interestingly, Clayton left the securities regulator last year to join One River, an asset manager focused on Bitcoin and Ethereum, and the firm filed for a Bitcoin ETF earlier this week.