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Fidelity Set To Launch Physical Spot Bitcoin ETF

Fidelity Set To Launch Physical Spot Bitcoin ETF

If everything works out favorably, then Bitcoin will get a boost in the world of trading. Bitcoin has been in existence with a lot of controversy surrounding it.

It ranged from the perspective of being safe to being a valid currency. Fidelity Investments’ decision to launch a physical spot Bitcoin ETF will take Bitcoin a step further in getting its much-deserved recognition in the trading market.


The US Securities and Exchange Commission rejected a model that required investing in a physical spot cryptocurrency as the base. It quoted many concerns while rejecting the model.

This had a reasonable impact on many financial service providers; however, Fidelity Investments decided to re-work the model.

It has now decided to launch a Crypto exchange-traded fund that is based on investing in the physical spot Cryptocurrency. Fidelity Investments is the fourth largest fund manager. When a financial service provider at that stature takes a step in this direction, then it attracts a lot of attention.

Normally known to take baby steps, Fidelity has decided to give it the green light. The surprise is that the US Securities and Exchange Commission has approved bitcoin futures contracts and yet it decided to drive away with investing in a physical spot Cryptocurrency.

This is a sign that Cryptocurrency, especially Bitcoin, will be accepted based on how well it has been worked on.

Fidelity Investments holds assets worth $4.2 trillion into the Crypto market. This puts rather more weight on the acceptance of Bitcoin.

The concerns of the US Securities and Exchange Commission were that Crypto trading would encourage fraudulent and manipulative practices while not protecting the interests of the people. The concerns were genuine as the initial phase of Bitcoin was sensitive with less clarity about its concept.

The launch of the physical spot Bitcoin ETF is tentatively scheduled for Thursday. The launch was earlier delayed due to the concerns of the US Securities and Exchange Commission that we reviewed in the previous paragraph.

The concerns were later challenged by a group of lawyers who stated that there was no ground for the Commission to challenge investing in assets being acceptable while investing in the derivative market for an asset was acceptable.

Condition In Other Countries

The Crypto ETF market in Canada is crowded, with seven major fund managers offering 23 products already. These fund managers are Evolve ETFs, Ninepoint Partners, and Horizon ETFs, to mention a few.

Australia is expected to launch the Crypto ETF market soon, with the European market already boosting 37 Crypto exchange-traded products. These are approximately worth $11.4 billion of assets.

The United Kingdom, on the other hand, has warned everyone that they must prepare to lose all their financial investments in the Crypto ETF market.

Final Thoughts

Every step that is taken by a big player is often followed by others in the market. Fidelity Investments has set an example with other players to follow suit. It would be extremely appealing to witness the moment if the Crypto market becomes a mainstream investment option.

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