Fidelity Investment, one of the many firms that have applied to a spot Bitcoin ETF has recently made changes to its application submitted to the SEC. Fidelity has filed an updated version of its spot Bitcoin ETF S-1.
S-1, or SEC Form S-1, is a registration form that companies are required to submit to the SEC for registering new securities. Companies usually file SEC Form S-1 in anticipation of their initial public offering (IPO). Form S-1 requires companies to give a detailed explanation of what is the planned use of their upcoming security, provide details of the business model, and how they are planning to price their asset.
Fidelity has followed the footsteps of Ark Invest and Invesco, who have recently made amendments to their spot Bitcoin ETF application. According to many observers, this news has made a positive shift in the crypto market. The positive sentiment was seen in the market as Bitcoin moved upwards after news circulated that Fidelity has made amendments to its spot Bitcoin ETF filing.
Many analysts see this move as a sign that the SEC is willing to decide these ETF filings, and the firms making amends to their applications according to SEC guidelines give a sign that both parties are interested in heading towards a productive resolution to this matter. Fidelity has specified in its application to the SEC how it plans to work in conjunction with the SEC to ensure the safety of users’ assets, specifically customers’ Bitcoin in custody accounts. They also stated that they would make public all the risks associated with cryptocurrencies so that users can make informed decisions before planning to invest in this endeavour.
This approach by Fidelity will give the SEC an indication that firms are trying to adhere to the guidelines set by the regulatory body, and the ball is in their court now to try and move towards a resolution and approve the spot Bitcoin ETF applications that are adhering to SEC’s legal guidelines. It is also imperative to note that the regulatory body’s decision to engage in discussion with these firms indicates that their stance towards cryptocurrency is shifting to the positive side, and they are acknowledging the importance of cryptocurrency in the financial market.
Bloomberg Intelligence Research Analyst James Seyffart has said on his X (formerly Twitter) social media account that: “More proof that potential spot Bitcoin ETF issuers are in communication with SEC regarding changes/amendments required for SEC to consider approving. Positive signs (in my opinion).”
While no one can predict where Bitcoin and other crypto assets will land once these spot Bitcoin ETFs are approved by the SEC, the general feeling is that if these applications are approved, then the crypto market may experience an inflow of at least $1 trillion which will exponentially increase the total market capitalization of crypto increase.
The news also shows that the crypto market is constantly keeping an eye on the news related to the Bitcoin ETF applications. Just recently, a false rumour regarding BlackRock’s spot Bitcoin ETF application getting approval from the SEC pumped the price of Bitcoin from $28000 to $30000. Just moments later, BlackRock had to issue a statement negating this news and Cointelegraph, the news media platform responsible for giving this false news, had to issue an apology to its readers for the oversite.
