Financial services giant Fidelity made a case for the approval of a Bitcoin BTC/USD exchange-traded fund in a private meeting with the SEC, according to a Bloomberg report.
What Happened: On Sept. 8, Fidelity Digital Assets president Tom Jessop and six of the firm’s executives attended a private meeting with several SEC officials, Bloomberg reported.
During the meeting, the Fidelity executives presented a number of reasons why the U.S. regulator should approve a Bitcoin ETF, while also making a case for its own yet-to-be-approved application — the Wise Origin Bitcoin Trust.
“We believe bitcoin futures-based products are not a necessary interim step before a bitcoin ETP; firms should be able to meet investor demand for direct exposure to bitcoin through ’33 Act bitcoin ETPs because the bitcoin market has matured and can support them,” the firm said in a presentation.
“Bitcoin futures and spot markets are now of significant size and the CME bitcoin futures market is a regulated market of significant size under Section 6(b)(5),” according to Fidelity.
The firm also highlighted the enhanced demand for a Bitcoin ETF from retail investors, pointing to figures like the growth in crypto account holders from 35 million in 2018 to over 100 million in 2020.
“69% of US institutional investors feel digital assets should be part of an investment portfolio going forward,” Fidelity said. “A bitcoin ETP is the most appealing digital asset investment product, with 38% of US institutional investors finding it appealing.”
BTC Price Action: Bitcoin was trading 3.29% higher at $48.049 Wednesday afternoon.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
