An exchange-traded fund (ETF) for Bitcoin has been launched by Fidelity Investments, which will allow investors to purchase and sell actual Bitcoin, rather than derivatives.
For Bitcoin investors, it’s been a rough trip so far. According to reports, Fidelity Investments, a U.S.-based investment firm, is planning to launch a spot Bitcoin ETF in Canada while the United States SEC determines whether or not it will approve a spot Bitcoin ETF.
Bloomberg senior ETF analyst Erick Balchunas tweeted that the fund “Fidelity Advantage Bitcoin ETF” is now in the process of being approved for listing on a Canadian platform. Balchunas also pointed out that, if the new fund is successful, it would surpass all other asset management firms in terms of the number of Bitcoin services it provides.
SEMI-SHOCK: Fidelity launching a spot bitcoin ETF in Canada this week. Didn’t know about this. Will easily be the biggest asset manager to date with a bitcoin ETF. pic.twitter.com/H2XJRBY3O6
— Eric Balchunas (@EricBalchunas) November 30, 2021Fidelity’s plan to offer a spot ETF in Canada merely adds fuel to the fire, as one of the world’s largest asset managers, with over $4 trillion in assets under management, is obliged to establish a service in Canada in order to meet consumer expectations.
Meanwhile, the SEC is still debating whether or not to approve a spot Bitcoin ETF, which many market analysts believe would be a smash hit in the market.
Grayscale Investments has attacked the US SEC for its recent denial of VanEck‘s spot Bitcoin ETF application. As stated in a letter to Vanessa Countryman, Secretary of the Securities and Exchange Commission, Grayscale Bitcoin Trust (GBTC) believes that the SEC is incorrect in rejecting spot Bitcoin ETFs because the SEC has already approved three Bitcoin ETFs that are based on Bitcoin futures.
Bitcoin ETFs are not new to Canada. Because of the advent of the FBTC, it is possible that new spot ETFs may be introduced in the Canadian market. The ability to gain exposure to Bitcoin without having to go through the hassle of acquiring and holding it oneself would be a big triumph for investors, who would benefit from the move.
