HomeNewsTrillion-Dollar Titan Fidelity Joins Forces with BlackRock, Ark Invest, and Invesco in...

Trillion-Dollar Titan Fidelity Joins Forces with BlackRock, Ark Invest, and Invesco in Bitcoin ETF Filing Overhaul

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  • Fidelity updates its Bitcoin Spot ETF application, addressing SEC’s concerns on custody, valuation, and more.
  • Fidelity joins Ark Invest and Invesco in refining applications, indicating ongoing engagement with the SEC.

Key Amendments in Fidelity’s Updated Filing

Fidelity Funds Management LLC has made an imperative move in the crypto ecosystem by submitting a revised version of its Spot Bitcoin Exchange-Traded Fund (ETF) prospectus to the U.S. Securities and Exchange Commission (SEC). This refined submission underlines Fidelity’s proactive approach, considering the changes observed in ETF applications from other significant players like Ark Invest and Invesco.

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The recent amendments in the ETF prospectus emphasize:

      • Detailed custodial arrangements: A crucial facet of any ETF, this determines how the underlying assets, in this case, Bitcoin, are securely held and managed.
      • Mechanics around hard forks: Hard forks in the blockchain world refer to changes that split the existing chain into two paths. Addressing this provides clarity on how the ETF would handle such situations.
      • Valuation, pricing sources, and GAAP compliance: Establishing a clear framework for valuation and ensuring alignment with Generally Accepted Accounting Principles (GAAP) is paramount for regulatory approval.
      • Risk disclosure amid regulatory ambiguity: This highlights potential challenges and uncertainties, providing investors with a comprehensive view of the risks involved.
      • Mining’s energy consumption: The energy-intensive nature of Bitcoin mining has raised environmental concerns. The SEC, in its evaluation, seeks to understand the geographical implications of mining and how ETF issuers might counteract potential negative impacts, especially concerning Bitcoin’s price.

James Seyffart, an ETF specialist with Bloomberg Intelligence, interprets these updates as a positive sign, signaling authentic dialogue between the SEC and ETF applicants. The shared themes across submissions from Fidelity, Ark Invest, and Invesco suggest the SEC’s focus areas for potential approval metrics.

The crypto market is anxiously awaiting a response, with anticipation building for possible approvals in Q1 of 2024. This anticipation reached a crescendo when rumors circulated about the SEC approving BlackRock’s iShares Spot BTC ETF, which led to significant market fluctuations. These episodes emphasize the market’s eagerness for a Spot BTC ETF and heighten the pressure on SEC chair, Gary Gensler, to provide a definitive verdict.

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As the narrative unfolds, Bitcoin‘s current price remains at approximately $28,300, reflecting recent market volatilities.

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Jane Smith
Jane Smith
As a Bitcoin Journalist, I am dedicated to reporting the latest developments in cryptocurrency, with a particular focus on Bitcoin. Through extensive research and interviews with industry experts, I provide accurate and up-to-date information on the ever-evolving world of cryptocurrencies. My goal is to help readers stay informed and make informed decisions regarding their investments in this rapidly changing field.
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