Fidelity Files for A Bitcoin ETF With the U.S. SEC While CBOE Plans to Launch Its BTC Futures

25. Mar 2021 Posted by Akolkar B on News

Financial giant Fidelity Investments is now planning to launch its own Bitcoin exchange-traded-fund (ETF). On Wednesday, March 24, Fidelity submitted the Form S1 filing with the U.S. Securities and Exchange Commission (SEC).

In the filing, Fidelity subsidiary FD Funds Management said that it plans to offer the financial backing for the ETF called the Wise Origin Bitcoin Trust. The Fidelity’s Bitcoin ETF aims to track the performance of the Bitcoin movement as tracked by the Fidelity Bitcoin Index.

Although Fidelity has confirmed about filing the prospectus, it has refused to comment further on this matter owing to the preliminary nature of filing. However, the key question here remains whether or not the SEC will approve the ETF applications.

Over the last two years, the securities regulator has turned down and rejected over a dozen proposal of Bitcoin ETF. The Fidelity Bitcoin ETF, is the second big ETF application this week. Earlier on Monday, March 21, Skybridge Capital applied for a Bitcoin ETF application with the U.S. SEC.

Currently, there are eight Bitcoin ETF applications that are awaiting the SEC approval. A decision from the securities regulator will likely arrive in the next 45 days.

On the other hand, the Chicago Board Options Exchange (CBOE) is planning to come back to the Bitcoin futures market once again. Speaking to Bloomberg, CBOE CEO Ed Tilly said: “We’re still interested in the space, we haven’t given up on it. We’re keen on building out the entire platform. There’s a lot of demand from retail and institutions, and we need to be there.”

CBOE was he first derivative exchange in the U.S. to launch its Bitcoin futures back during the Bitcoin bull run of December 2017. However, despite the hype around Bitcoin, CBOE faced a major lack of institutional demand for its Bitcoin futures products throughout 2018 and had to withdraw its offering by mid-2019.

But now with major institutional and corporate demand, CBOE is also willing come back into the game. On the other hand, CBOE has been also dipping its toes in the Bitcoin ETF market in partnership with VanEck.

An exchange-traded fund from VanEck Bitcoin Trust is currently awaiting the SEC approval and shall be listed on the CBOE BzX Exchange. “We’re very keen to move along approval for the VanEck ETF,” Tilly added.