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Fidelity files for a Bitcoin ETF to embrace digital currency

As Bitcoin is getting more popular, so are the ETFs that invest in it. Even though there are no Bitcoin ETFs or exchange-traded funds right now, there could soon be many. This is because more and more companies are filing for Bitcoin ETF under the SEC. And now, even Fidelity investments have filed for one under them. The filling was made on Wednesday, 24th March. Their attempt with this will be to track the performance of Bitcoin and give BTC the recognition it deserves. It will also help investors get easy access to a diversified crypto portfolio.

Fidelity’s Bitcoin ETF

The new ETF by Fidelity will bring in the exposure of Bitcoin to its investors. This is going to be by investing in Bitcoin directly through exchanges and keeping the share prices in concordance with the Bitcoin price. The investment firm plans to hold the bitcoins in the US’s biggest cryptocurrency exchanges: Coinbase and Bitstamp. But it is difficult to say whether the SEC will approve the filing. This is because, more often than not, the SEC has been adamant about letting Bitcoin become a part of the financial system of the nation.

Fidelity files for a Bitcoin ETF

The unregulated nature of the cryptocurreny makes the SEC weary about allowing ETFs in Bitcoin. And this is also the reason that many filings are still pending for its approval. Coming back to the fling made by Fidelity, one of the major points that the firm mentioned in the file was Bitcoin’s growth. It is said that the market of Bitcoin and other assets had grown significantly over the past few years. This has brought in a lot of investors that are keen on investing in and around the ecosystem. But more often than not, these individuals end up investing only in Bitcoin. Hence their new ETF will be a major step forward as it will bring a diverse portfolio to every investor.

The recent adoption of Bitcoin

It’s not just Fidelity that has shown interest in the cryptocurreny. Even Goldman Sachs filed for a Bitcoin ETF recently. And its ETF is also pending approval under the SEC. Other than that, even officials from the government have spoken strongly in favor of Bitcoin. The Federal Reserve Chairman said a few days back that “Bitcoin is a substitute for Gold.” It also said that the high price volatility makes it inefficient as a payment system and a replacement to the dollar. But still, it is a great store of value. At the same time, even Tesla has started accepting Bitcoin payments for their vehicles. This is also a major step forward towards making use of cryptocurrency in a practical way.

What are your thoughts on Bitcoin ETF files by Fidelity? And do you think if the SEC approves all the filings, the market will get saturated by these ETFs? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.

Also Read: Germany bridges the gap between blockchain and Euro



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