Fidelity's Bitcoin ETF Filing: A Potential Tipping Point For Crypto Adoption?

Fidelity, a leading asset management firm, is reportedly on the verge of filing for a Bitcoin BTC/USD exchange-traded fund (ETF), joining a growing number of issuers eager to introduce such a product.

An insider with knowledge of Fidelity's plans indicated that the filing could be made as early as Tuesday, following in the footsteps of asset management behemoth BlackRock Inc BLK, The Block reported.

BlackRock's filing on June 15 has sparked a wave of similar filings from other asset managers, including Invesco, WisdomTree and Bitwise, all of whom are keen to launch their own Bitcoin funds.

This marks Fidelity's second attempt to launch such a product.

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The firm had previously filed for a Bitcoin spot exchange-traded fund named the Wise Origin Bitcoin Trust in 2021, but this was rejected by the U.S. Securities and Exchange Commission in early 2022.

News of Fidelity's impending filing for a Bitcoin ETF triggered a brief spike in the price of Bitcoin.

The cryptocurrency's value rose from $30,600 to $31,000 within minutes of the news breaking, although it quickly fell back to $30,680.

At the time of writing, Bitcoin's value has increased by 12% over the past week.

Ethereum ETH/USD, the second-largest digital currency, has seen a 9% increase over the same period.

Other major cryptocurrencies, such as Cardano ADA/USD and Dogecoin DOGE/USD, have seen weekly increases of 9% and 6%, respectively, while Binance Coin BNB/USD and Ripple XRP/USD have remained stable.

Experts believe that the approval of a Bitcoin ETF would be a significant development for the cryptocurrency industry.

It could make Bitcoin more accessible to mainstream investors, potentially leading to increased adoption.

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