Fidelity Investments and Goldman Sachs have filed applications to list a Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). These would be the first Bitcoin ETFs in the United States.
In what is a major step forward for the crypto market, both Fidelity Investments and Goldman Sachs have filed for Bitcoin exchange-traded funds (ETF) with the U.S. SEC. Goldman Sachs filed the application on March 19, while Fidelity filed a few days later on March 24.
If successful, the firms would offer a fund that tracks Bitcoin’s price from exchanges based in the United States. Multiple firms have been trying for over a year to get an ETF approved in the US, and it has long been anticipated by the market.
Bitcoin ETF is 'just a matter of time,' market analyst says after SEC acknowledges VanEck proposal https://t.co/uCUpQzeAeY
— CNBC (@CNBC) March 23, 2021
Analysts believe that it is only a matter of time before an ETF is approved, and indeed it does feel like it if a major incumbent like Goldman Sachs is getting into the game. Astoria Portfolio Advisor’s John Davi stated that it was only a matter of time before it happened. Until now, US authorities have been hesitant to allow a Bitcoin ETF. This includes a failed attempt by Winklevoss-owned Gemini Exchange, which has built a reputation for being regulation compliant.
Fidelity Hopes for Wise Origin Bitcoin Trust
Fidelity’s Wise Origin Bitcoin Trust pulls data from Bitstamp, Coinbase, Gemini, itBit, and Kraken, some of America’s biggest exchanges. The filing notes the risks involved in investing in cryptocurrency, but also points out the innovative potential.
“The digital assets ecosystem has grown significantly in recent years…an increasingly wide range of investors seeking access to Bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets.” - Statement Fidelity
The filing states that FD Funds Management will be the sponsor of the fund, with Fidelity Service Company being the administrator. The fund was first revealed by Fidelity in August 2020.
Goldman’s ARK Innovation ETF
Meanwhile, Goldman Sachs ARK Innovation Fund offers exposure to Bitcoin and other cryptocurrencies. The filing reads:
“The ETF may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the ETF’s portfolio.” - Goldman Sachs filing
The wording here is more tentative than that of Fidelity’s, but it’s clear that Goldman is seeking to offer emerging assets. We may have more clarity on this in the weeks to come.
The multinational investment bank has done a u-turn on cryptocurrencies. Recently, analysts from the bank targeted a $146,000 price for Bitcoin, though they expect it to settle lower. It has also reopened its crypto trading desk and may even release its own cryptocurrency.
