Fidelity Rumored to Join the Race for Spot Bitcoin ETF, Boosting Optimism

According to a report from The Block, Fidelity Investments is reportedly preparing to file for a spot in Bitcoin ETF, following in the footsteps of BlackRock. This news has sparked optimism among crypto enthusiasts and investors as the race for a Bitcoin ETF continues to heat up.

Edward Moya, a Senior Market Analyst at Oanda, commented on the potential Fidelity filing, expressing confidence in the prospects of a Bitcoin ETF. The growing number of companies, including Invesco, WisdomTree, Bitwise, and VanEck, recently filing for spot Bitcoin ETFs has already played a role in driving Bitcoin’s price to reach $31,000, its highest point in over a year.

It’s worth noting that Fidelity filed for a spot Bitcoin ETF in 2021 but faced rejection then. However, the situation may differ, as Fidelity’s peer, BlackRock, has also filed for a similar ETF. According to Oanda’s Moya, BlackRock’s reputation for making such moves only when it expects approval adds weight to the possibility of success.

If Fidelity’s filing is approved, it could have significant implications for the crypto market. The entrance of institutional money and the potential return of high-net-worth retail traders could open the floodgates for increased investment in cryptocurrencies.

In addition to the potential ETF developments, Fidelity made headlines last week with the launch of its backed crypto exchange, EDX Markets, in the United States. However, it’s important to note that regulatory challenges persist, as the U.S. regulator recently filed lawsuits against powerful platforms such as Binance and Coinbase Global Inc.

While Fidelity has yet to comment on The Block’s report, the speculation surrounding its potential spot Bitcoin ETF filing has injected a fresh wave of enthusiasm into the crypto community. As the race for a Bitcoin ETF intensifies and more traditional financial institutions show interest, the path toward broader adoption of cryptocurrencies continues to evolve.