In a renewed push to establish a Bitcoin exchange-traded fund (ETF), asset manager Fidelity has refiled its application for the Wise Origin Bitcoin Trust spot bitcoin ETF. The filing, made by listing exchange Cboe Global Markets with the U.S. Securities and Exchange Commission (SEC), comes amid a wave of applications from prominent asset managers including BlackRock, WisdomTree, Invesco, and VanEck. The news has injected fresh optimism into the crypto industry, leading to Bitcoin’s price surging to a one-year high of over $31,000 on June 23.

Fidelity Joins the Ranks of Traditional Finance Giants

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Fidelity, a renowned player in the asset management space, has once again expressed its interest in launching a Bitcoin ETF. Following the lead of other heavyweight financial institutions, such as BlackRock, WisdomTree, Invesco, and VanEck, Fidelity’s application aims to list and trade shares of the Wise Origin Bitcoin Trust spot bitcoin ETF. These applications have breathed new life into the ailing crypto industry, which had previously been impacted by various crypto company meltdowns and regulatory challenges.

Read more: The First Leveraged Bitcoin Futures ETF To Be Approved by SEC in the US

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Crypto Industry Regains Momentum

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At the time of writing, Bitcoin is being traded at a price of $30,661

The recent surge in applications for Spot Bitcoin ETFs by traditional finance giants has sparked renewed interest in cryptocurrencies. Bitcoin, in particular, experienced a notable boost, reaching above $31,000 after the news. The positive sentiment stems from the potential approval of these ETFs, which could enhance accessibility and attract institutional investors to the crypto market.

Read more: Bitcoin and Ethereum ETF Trading Launched by HSBC, Setting New Standards in Hong Kong

Challenges Faced by the Crypto Sector

Despite the current optimism, the crypto industry has faced its fair share of setbacks. Instances of crypto company collapses, including the sudden demise of the FTX exchange last year, raised concerns over fraudulent activities within the sector. Additionally, regulatory scrutiny has weighed on the industry, with prominent exchanges like Binance and Coinbase Global facing lawsuits from the SEC for alleged rule violations. These challenges have created a cautious environment for the approval of spot bitcoin ETFs by the SEC.

Fidelity Application Filling Comes Amid A Wave Of Applications From Prominent Asset Managers Including Blackrock, Wisdomtree, Invesco, And Vaneck

Read more: UK Crypto Regulations Gain Legal Status with Royal Assent

Unlike futures-based ETFs, spot ETFs directly track the price of the underlying asset, in this case, Bitcoin. The renewed interest in establishing spot bitcoin ETFs has provided further validation for cryptocurrencies, propelling Bitcoin to new highs. The surge to over $31,000 following the filing news signifies the market’s enthusiasm for regulated investment vehicles that allow investors to gain exposure to Bitcoin’s price movements without directly owning the digital asset.

Conclusion

Fidelity’s refiled application for a Bitcoin ETF, alongside the submissions from other prominent asset managers, has brought a renewed sense of optimism to the crypto industry. The surge in Bitcoin’s price to over $31,000 following this news highlights the market’s positive response to the potential approval of spot Bitcoin ETFs. While challenges remain, including regulatory scrutiny and the need to meet investor protection standards, the increasing interest from traditional finance heavyweights signals a growing acceptance and integration of cryptocurrencies into the broader financial ecosystem.

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