Asset-management giant joins the race for Bitcoin ETF approval, signalling the growing acceptance of cryptocurrencies in the financial world.

In a significant development for the cryptocurrency industry, Fidelity Investments, a renowned asset-management titan, has reportedly filed for a spot Bitcoin Exchange-Traded Fund (ETF) in the United States. The news confirms earlier rumours and highlights the increasing interest of traditional financial institutions in cryptocurrencies.

The filing by Fidelity Investments adds to the growing list of major players seeking approval for a Bitcoin ETF. BlackRock, another industry heavyweight, recently made a similar move, prompting speculation and anticipation among investors. Other notable participants in this ETF hunting expedition include WisdomTree, Invesco, Bitwise, Valkyrie, 21Shares, and Ark Invest. In fact, Cathie Wood, founder of Ark Invest, expressed confidence that their filing would be the first to receive approval.

Yassine Elmandjra, an analyst at ARK Invest, mentioned that other applicants would be able to amend their filings with similar agreements at little cost if Ark Invest’s filing is approved. This sentiment was echoed by Bloomberg Intelligence ETF analyst James Seyffart, who suggested that Ark Invest and 21Shares should be ahead in the race for a spot Bitcoin ETF.

However, Bloomberg Intelligence has indicated that the approval of a spot Bitcoin ETF only stands at a 50% chance this year. This estimate, although uncertain, represents a significant improvement from just over a week ago when the likelihood was considered even lower.

Taking a broader view of the cryptocurrency market, the overall crypto market cap currently stands at an impressive $1.23 trillion, with a 1.3% increase since the previous day. Among the top 10 tokens by market cap, TRON holds its position with relative uncertainty, as Solana, Litecoin, Polkadot, and Polygon closely trail, ready to capitalize on any market weaknesses.

The news of Fidelity’s ETF filing sparked renewed interest in Bitcoin, leading to a surge in its price to nearly $31,000. Although the price has retraced slightly since then, it has managed to hold on to its initial gains related to the ETF announcement. Traders are eagerly awaiting a breakthrough past the $31,000 resistance level before fully committing to the bullish trend.

Also Read: The Rise of Decentralized Finance (DeFi)

Technical analyst Rekt Capital has pointed out positive signs for Bitcoin, suggesting that the cryptocurrency has broken a multi-month downtrend, potentially indicating the start of a new uptrend. However, caution remains, as trends can change swiftly in the volatile world of cryptocurrencies.

Shifting our attention to the performance of various cryptocurrencies, we observe some notable gainers and losers over the past 24 hours. Stellar (XLM), WOO Network (WOO), Kaspa (KAS), Pepe (PEPE), and Arbitrum (ARB) experienced gains ranging from 6% to 11%. Conversely, BitDAO (BIT), Frax Share (FXS), Kava (KAVA), Stacks (STX), and Algorand (ALGO) faced losses between 3% and 10%.

While the prospect of a Bitcoin ETF has generated excitement within the cryptocurrency community, it is essential to remain cautious. The approval process is subject to the Securities and Exchange Commission (SEC)’s scrutiny and decision-making. A single denial or a months-long delay, as commonly seen, could dampen the current enthusiasm.

It is worth noting that Fidelity Investments has been involved in the crypto space for nearly a decade, with a history of engagement that dates back to 2014 when the company began mining Bitcoin. If and when any ETFs are approved, it is crucial to consider the contributions and support of other applicants who have been actively involved in the crypto industry for an extended period.

Also Read: Supreme Court Upholds Coinbase’s Arbitration Victory

The filing by Fidelity Investments for a Bitcoin ETF is an important milestone for the crypto industry. The participation of established financial institutions demonstrates a growing acceptance and recognition of cryptocurrencies as a legitimate asset class. As the SEC reviews the applications, market participants eagerly await the potential approval of a Bitcoin ETF, which could open new avenues for mainstream investors to engage with digital assets.

Disclaimer: The information provided in this article and any accompanying tweets should not be construed as financial advice.

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Written by Agbo Obinnaya.

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