According to Fidelity, Bitcoin markets have already reached maturity under the SEC’s own standards.
Fidelity Investments, a multinational financial services corporation, has asked the US Securities and Exchange Commission to approve its Bitcoin exchange-traded fund (ETF).
On September 8, Fidelity Digital Assets president Tom Jessop, six of the firm’s executives, and numerous SEC officials met in private. The finance professionals outlined a number of reasons why the investment product should be approved by the regulator. Increased demand for digital assets and associated goods, the presence of similar funds in other countries, and the rise of Bitcoin (BTC) usage are among them.
According to a Fidelity presentation from the conference describing the merits of a Bitcoin product, global developed market regulators in Canada, Germany, Switzerland, and Sweden have approved Bitcoin exchange-traded products (ETPs).
Fidelity argued last month in response to SEC Chair Gary Gensler’s comments on the possibility of reviewing only BTC futures products that strict adherence to either a 1933 law allowing stock exchanges to list the products or allowing futures only products were no longer necessary because the market had matured.
“We believe Bitcoin futures-based products are not a necessary interim step before a Bitcoin ETP; firms should be able to meet investor demand for direct exposure to Bitcoin […] through ETPs because the Bitcoin market has matured and can support them.”
Following the 1929 stock market disaster, the Securities Act of 1933 was enacted to safeguard investors by establishing regulations against misrepresentation and fraudulent conduct. Fidelity feels that these restrictions are overly severe and that markets have become more transparent and stable.
It further claimed that the market has already reached “substantial size” and “deep liquidity,” as defined by the SEC. Fidelity filed for a Bitcoin ETP named the Wise Origin Bitcoin Trust in March 2021, and more than 20 similar applications from other corporations have been submitted since then, but the regulator has yet to act.
Following a filing on Tuesday, the Bitwise Bitcoin Strategy ETF is the latest to be added to the SEC’s ever-growing application backlog.
Despite regulatory obstacles, Fidelity Digital Assets continues to grow its activities. According to Bloomberg, the company intends to boost its crypto-asset workforce count by up to 70% by the end of the year.
The SEC is moving at its own glacial pace, having postponed VanEck’s proposed Bitcoin Trust ETF for the third time this year on the same day as the meeting with Fidelity, pushing the decision date back to November 14.
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