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Fidelity Rumored To File Bitcoin Spot ETF In US, Bid For Grayscale

Jake Simmons 2023-06-19 18:45

The application of the world’s largest asset manager ($9.57 trillion AUM), BlackRock, for a Bitcoin spot ETF has generated bullish momentum in the past second half of last week. Experts believe the application has a strong chance of being approved, given BlackRock’s strong political connections and its staggering success rate with ETF applications. Out of 576 applications filed with the US Securities and Exchange Commission, only one application has been rejected so far, while 575 applications have been approved.

And if the rumors turn out to be true, the Bitcoin price could soon receive another piece of bullish news by another financial giant. The third-largest asset manager, Fidelity, could soon follow suit, according to rumors, and also apply for a spot Bitcoin ETF and / or make a bid for the troubled leading crypto asset manager Grayscale.

At least, this rumor is currently circulating on Twitter. While several accounts reported it, the source for the rumor appears to be Arch Public co-founder Andrew Parish. Remarkably, the rumor has been spread by notable crypto influencers such as Scott Melker, Michaël van de Poppe and Ash Crypto.

According to an anonymous source, Fidelity is reportedly planning a “seismic move” in the crypto markets. Via Twitter, Parish writes:

UPDATE: Fidelity Digital Assets and Fidelity are about to make a seismic move in crypto via both BTC and ETH. Sources expect Fidelity to either make a bid for Grayscale or quickly launch their own spot Bitcoin ETF. One or both are coming, soon. **Blackrock and Fidelity will own the crypto space in the US.

Race For A Bitcoin Spot ETF

Remarkably, Fidelity is no stranger to the Bitcoin and crypto space. The world’s third-largest asset manager, with $4.283 billion in assets under management (AUM), launched a separate crypto-focused company, Fidelity Digital Assets (FDA), in 2018.

The company offers various Bitcoin and crypto products. Among other things, it was the first company to offer investors the option of adding crypto assets to their 401(k) retirement accounts. FDA also launched the Fidelity Advantage Bitcoin ETF in Canada in December 2021.

The rumored bid for Grayscale, however, is no less interesting than the ETF application. As is well known, Grayscale’s parent company, Digital Currency Group (DCG) has been in trouble for quite some time, with its finances remaining opaque. Grayscale is considered DCG’s “cash cow”, holding over 630,000 BTC in its Bitcoin Grayscale Trust (GBTC).

A bankruptcy of DCG and Grayscale was long considered a potentially catastrophic capitulation event late last year / early this year. Since then, things have been quiet around DCG. A rescue of Grayscale and the unwinding of the GBTC discount of currently 36.6% would be bullish for Bitcoin and crypto.

Overall, BlackRock’s and Fidelity’s entry into the Bitcoin market can be seen as a net positive event, driving prices and providing legitimacy to the industry. As NewsBTC reported, BTC may be having its “gold moment” soon. After gold received its first spot ETF approval in the US in 2004, the price literally exploded in the following years.

At press time, the BTC price stood at $26,444 after bouncing off the 200-day EMA (blue line).

Bitcoin price