Despite being denied a spot in Bitcoin ETF in 2022, Fidelity has applied again

After Fidelity and other spot Bitcoin ETFs had their applications denied by the SEC in January 2022, they resubmitted them in 2022.

The SEC rejected Fidelity’s proposal in January 2022, along with a number of other applications for spot Bitcoin ETFs that had been submitted between 2021 and that point. No organisation has yet been granted permission for a spot Bitcoin ETF application.

Following BlackRock’s reapplication from earlier in June, Fidelity has also decided to reapply. On June 29th, nine separate spot Bitcoin ETF applications were filed to the SEC.

The SEC has turned down every application from a company in the previous two years except BlackRock. The markets hope this application will be accepted because of BlackRock’s impressive track record of ETF approvals (575 approved and one refused).

Because there are not enough safeguards to avoid market manipulation, the SEC has maintained that a product directly exposed to Bitcoin is risky for investors. However, Evolve ETFs chief investment officer Elliot Johnson claims that BlackRock has agreed to have NASDAQ monitor its trading behaviour as the application’s defining feature. Johnson argued that this degree of monitoring is necessary to avoid such manipulation.

In the Grayscale vs SEC case, the courts questioned the regulator’s rationale and said it was defective since it allowed Bitcoin futures ETFs. It is uncertain, however, whether the outcome of the lawsuit would change the present attitude towards a spot ETF.

Also Read: MicroStrategy Increases Bitcoin Purchases Bringing Treasury Value To Over $4.5B