Bitcoin Spot ETF Race Heats Up
Fidelity enters a pool of institutions and companies in the open race to offer America’s first Bitcoin spot exchange-traded fund, a product that the SEC and Chair Gary Gensler have notoriously rejected on several occasions.
BlackRock submitted its filing for a Bitcoin Spot ETF on June 15, ushering a wave of applications from other institutions like WisdomTree, Invesco, and now Fidelity. Crypto proponents speculate that the trillion-dollar asset manager stands a chance at success after successfully filing over 500 applications with the SEC.
Grayscale, a subsidiary of Digital Currency Group, has filed a number of unsuccessful applications with the securities watchdog. The company has repeatedly tried to convert its Grayscale Bitcoin Trust (GBTC) product to a Bitcoin Spot ETF with no luck. Grayscale is currently locked in a legal tussle with the SEC over the regulator’s decision to deny its application despite approving Bitcoin Futures ETFs.
Bloomberg analysts believe that Grayscale has a 70% chance of winning in court after three judges heard arguments from both sides. This has also seemingly upped the chances of BlackRock’s application going through as the SEC could look to soften the impact of coming up short in court, per comments from Bloomberg’s Eric Balchunas and Elliott Z. Stein.
Another reason we give spot bitcoin ETF approval 50% chance is our senior legal analyst @NYCStein gives Grayscale a 70% chance of winning case against SEC, who could approve BlackRock's ETF as way to save face using trusted 'adult' TradFi cos & stick it to Grayscale via @JSeyff pic.twitter.com/pHydOcpuQo
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