• Fidelity Investments is the latest institution to file for a Bitcoin ETF with the US securities regulator. 
  • Goldman Sachs also filed for a new investment product, offering exposure to Bitcoin through its linked note. 
  • Demand for crypto-related products is on the rise, as the world’s first Bitcoin ETF reached $1 billion in assets under management. 

Fidelity Investments, with $4.9 million assets under management (AUM), has recently filed for a Bitcoin exchange-traded fund (ETF) with the United States Securities & Exchange Commission (SEC). Goldman Sachs joins in on the digital currency hype and has also filed an application with the regulator for a new investment product that would offer indirect exposure to BTC.

Fidelity offers investors more pathways into crypto

Preparing to launch its own Bitcoin fund, Fidelity Investments has planned to provide financial backing for an ETF called the Wise Origin Bitcoin Trust. 

Through its subsidiary, FD Funds Management, the firm filed a Form S-1 with the SEC for a Bitcoin ETF. The investment product would track the performance of the digital asset as measured by the movement of the Fidelity Bitcoin Index, which was previously created by the investment giant to track the price of BTC. 

According to the filing, Fidelity’s Wise Origin Bitcoin Trust would value its shares based on prices on Coinbase and Bitstamp. Similar to previously proposed Bitcoin ETFs, Fidelity Trust aims to provide more ways for institutional investors to get into the cryptocurrency market. Fidelity said in an official statement:

An increasingly wide range of investors seeking access to Bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets.

Goldman Sachs files for product with exposure to BTC

Goldman Sachs filed for a new investment product on March 19 that could give clients indirect exposure to Bitcoin. This product is not an ETF but rather a “linked note” that tracks the ARK Innovation ETF — which has exposure to Bitcoin shares. 

A linked note is similar to an ETF, which is a product tied to a security or a basket of securities. The ARK Innovation ETF is invested in the Grayscale Bitcoin Investment Trust, which gives Goldman Sachs’ clients indirect exposure to the flagship cryptocurrency.

Although the investment bank is showing interest in Bitcoin, it had a very different view on the new asset class just a year ago. Goldman Sachs previously stated that Bitcoin is “not an asset class.” However, the banking giant has recently revived plans to reopen its crypto trading desk.

The latest race to launch the first US crypto ETF

The SEC has not approved any company’s attempt to create a Bitcoin ETF to date, citing that the market is not ready, although there seems to be a growing number of applications. 

The US securities regulator rejected Wilshire Phoenix’s bid for a Bitcoin ETF in February 2021, pointing to the fact that the firm has not proven that the crypto investment product is sufficiently resistant to market manipulation.

Despite numerous rejections, there has been a race to launch the first US Bitcoin ETF, with a growing number of companies scrambling to get a seat at the table. 

The Chicago Board Options Exchange (CBOE) filed to list VanEck’s Bitcoin ETF on March 1. The SEC has since acknowledged that it is reviewing the application and subsequently has 45 days to either approve or reject the application, or extend the review period to 240 days before making a final decision. 

Anthony Scaramucci, the former White House communications director and hedge fund manager has applied for regulatory approval for a Bitcoin ETF as well, through SkyBridge Capital. The hedge fund previously launched a Bitcoin fund in late 2020, expecting an “avalanche” of institutional investors to purchase cryptocurrencies in 2021. 

World’s first Bitcoin ETF crosses $1 billion AUM

VanEck’s previous efforts at filing Bitcoin ETFs were rejected by the SEC. However, the approval of a cryptocurrency ETF in the US could be more likely following the launch of the world’s first Bitcoin ETF launched in Canada on the Toronto Stock Exchange by Purpose Investments. 

Investors’ interest in the crypto investment product was huge, as the Bitcoin ETF hit $9.65 million in volume on the first day and accumulated $421.8 million in assets under management on its second day.

On the one-month anniversary of its launch, Som Seif, CEO of Purpose Investments, announced that the investment product’s AUM crossed the $1 billion mark. 

He suggested that the recent milestone proves that investors are looking for convenient and safe access to digital currencies. He added: 

When we launched Purpose Bitcoin ETF, we knew we were filling a void in the market.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Is there more upside to Dogecoin-killer Shiba Inu’s rally after 100% gain in 90 days?

Is there more upside to Dogecoin-killer Shiba Inu’s rally after 100% gain in 90 days?

Shiba Inu token burn rate climbed by 67% since February 4. A total of 13,518,918 SHIB tokens have been burned according to the Shibburn portal. The meme coin gained 100% against competitor Dogecoin in the last 90 days. 

More Shiba Inu News

Why Bitcoin is still in a bear market and what this means for BTC price?

Why Bitcoin is still in a bear market and what this means for BTC price?

Bitcoin is currently in a bear market, according to analysts despite the massive rally of January. The selling pressure on the asset has reduced with miner inflow to exchanges declining to multi-year lows. 

More Bitcoin News

Here's what the new Dogecoin fork means for DOGE hodlers

Here's what the new Dogecoin fork means for DOGE hodlers

EthereumFair, the project that brands itself as the world’s first Ethereum fork is in talks with the Dogecoin community for a fork. The team proposes retaining DOGE’s consensus algorithm and changing the mining algorithm to make it compatible with Ethereum graphics card mining. 

More Dogecoin News

What to expect from US CFTC’s landmark crypto enforcement in 2023

What to expect from US CFTC’s landmark crypto enforcement in 2023

United States Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has said he will be continuing efforts for the agency to regulate cryptocurrencies, that is non-security tokens. In his remarks at the American Bar Association, Behnam said that the CFTC is well positioned to address regulatory gaps in crypto. 

More Crypto News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP