US SEC has been compelled to approve Bitcoin ETF

Fidelity Investments encourage SEC to approve Bitcoin ETF
  • Bitcoin ETF demand surges as Fidelity Digital Assets urges the SEC to approve its exchange-traded product
  • Fidelity president held a private meeting with US SEC officials to urge for a Bitcoin ETF
  • Fidelity noted investors seek a more diversified set of financial instruments
  • The US SEC is unwilling to approve a Bitcoin ETF

Bitcoin ETF or Exchange Traded Fund have been encouraging the financial regulators in the United States for several years for approval. None of the products had received approvals. However, this year one of the first such financial instruments received approval from the US Securities and Exchange Commission (SEC). Recently, Fidelity Investments held a private meeting with the US SEC. It is revealed that the investment firm is urging the regulator to approve its BTC exchange-traded product.

Fidelity Investments held a private meeting with SEC

Bloomberg has recently reported revealing that Fidelity Investments held a private meeting with the US SEC. The private meeting was held on September 8, 2021. Tom Jessop, the president of the Fidelity Digital Assets, met with the officials in a video call. At the conference, the investment firm gave a presentation that demonstrated the increased appetite of investors for the leading crypto coin. The presentation also consisted of the existence of similar funds in other countries and the growing BTC holders.

Several firms are proposing Bitcoin ETF approval

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This year, Gary Gensler shed light on how the US SEC may act on the many Bitcoin ETFs proposals. Following the remarks of the SEC chair, several firms have filed for BTC or BTC futures ETFs. Notably, while underlining that the agency is up for review, it signaled that those based on BTC futures may have the highest chance for approval.

Although the SEC boss expressed preference, none of the proposals have been accepted by the regulator. However, in March, Fidelity filed its proposed Wise Origin Bitcoin Trust BTC ETF. Indeed, the firm chose not to refile with the future-based strategy many others have taken. Its application is filed under the 1930s laws that allow stock exchanges to list ETFs.

Firms should meet investors demand

Fidelity’s presentation to the US financial regulator minimized the significance of rigorous mutual fund compliance. Moreover, the future application preference was expressed by Gensler. During the presentation, Fidelity argued that BTC futures-based products are not necessary interim steps before a Bitcoin exchange-traded product. Furthermore, the firm argued that the firms should be able to meet investors’ demand for direct exposure to the world’s most popular cryptocurrency. Indeed, this should be done through 1930’s laws ETFs because the BTC market has matured and can support them.

Investors need a more diversified set of product

A spokesperson from Fidelity named Nicole Abbott wrote an Email to Bloomberg. According to Abbott, an increasingly wide range of investors are seeking a more diversified set of products offering exposure to cryptocurrencies. However, the US SEC is unwilling to approve a Bitcoin ETF and has pushed many to seek BTC price exposure vehicles in the region.

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