Key Points:
- Fidelity may be exploring a takeover of Grayscale or a Bitcoin spot ETF filing.
- Grayscale has been striving for some time to convert the GBTC to a spot Bitcoin ETF.
- This event could bring a boom for Bitcoin.
According to Andrew Parish, co-founder of Arch Public, Fidelity is considering a seismic move in the crypto markets with a new deal.
Grayscale’s Bitcoin ETF might finally see the light of day after a protracted struggle… at the expense of a massive sacrifice.
Rumors say that Fidelity, the world’s third-largest asset manager with $4.24 trillion in assets under management, is exploring either a takeover of Grayscale or the launch of a Bitcoin spot ETF.
Grayscale, a cryptocurrency company, has been pushing for more than a year to create a Bitcoin ETF. By forcing the regulator to listen to it, society’s desire will be realized… but possibly not in the manner we expect.
Furthermore, many members of the cryptocurrency community expect that the Securities and Exchange Commission’s (SEC) response to Grayscale’s action could come within the next few days. As a result, the cryptocurrency management firm may be allowed the freedom to refuse to convert its Bitcoin fund into an ETF.
Grayscale manages 17 cryptocurrency trusts, which include single and multi-asset funds. The Grayscale Bitcoin Trust (GBTC) has the most assets under management (AUM) at $16.5 billion. Grayscale trust products provide accredited investors with exposure to the underlying crypto asset(s) via trust shares. Grayscale trusts, like ETFs, are subject to SEC reporting rules, ensuring excellent investor protection.
The key distinction is that a spot Bitcoin ETF would allow for redemption in BTC, whereas the Grayscale Bitcoin Trust does not. Grayscale has been striving for some time to convert the GBTC to a spot Bitcoin ETF. The SEC, however, disallowed the conversion, prompting Grayscale to sue the agency in June 2022.
Fidelity defines itself as “crypto-curious,” with Bitcoin mining since 2014. By 2018, it had established a new cryptocurrency-focused firm, Fidelity Digital Assets (FDA), which has now gained a New York Trust Charter and will begin operations in Europe in 2020. The FDA’s Fidelity Crypto product, which allows customers to trade Bitcoin and Ethereum alongside regular equities, is one example of an FDA campaign promoting 401(k) digital asset trading.
If one is inclined to believe Grayscale will prevail against the SEC, the involvement of Fidelity Investment in the case may be seen as opportunistic. By purchasing the firm, the fund manager could simply capitalize on his triumph against the American regulator and prevent such actions in the future.
On June 15, the world’s biggest asset manager, BlackRock, filed an application for a Bitcoin spot ETF. The move was widely seen as beneficial to the cryptocurrency field, both as a price driver and in legitimizing the business.
Parish also hypothesized that, given these prospective movements and other recent occurrences, BlackRock and Fidelity might dominate the digital asset industry in the United States.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
Coincu News
Source: https://news.coincu.com/196154-fidelity-follows-blackrock/