The requests have been seen as a vote of confidence for the crypto space, reigniting retail investor interest in the sector, which had felt pressure after Binance and Coinbase Global, two of the largest cryptocurrency exchanges, came under fire. by the United States Securities and Exchange Commission (SEC).
BlackRock’s request had sent bitcoin’s price soaring to its highest in a year, and it was up 2.2% on Tuesday to around $30,700, according to data from investing.com.
Fidelity did not immediately respond to a Reuters request for comment.
A spot bitcoin ETF is a publicly traded investment vehicle that tracks the price of bitcoin and gives investors exposure to this asset class.
Futures-based bitcoin ETFs track the price of bitcoin futures contracts and have been viewed more favorably by the SEC.
Fidelity had already entered the cryptocurrency ETF space in 2021, when it applied for a spot bitcoin ETF. The proposal was rejected by the SEC, which said it did not meet the rules to prevent fraudulent and manipulative practices.
SEC Chairman Gary Gensler’s tough approach to crypto companies has earned him a reputation as a “bad cop” among industry players.
The regulator is also embroiled in a dispute with Grayscale Investment, which sued the SEC for rejecting its request last June to convert its flagship Grayscale Bitcoin Trust into an ETF.
With information from Reuters.