Not waiting around for the SEC, Fidelity will launch a spot Bitcoin ETF in Canada
One of America's most prominent names in investing decided not to wait around for the SEC to start approving Bitcoin spot-based ETFs and took its product North.
Fidelity Investments will be launching its spot Bitcoin ETF in Canada this week, according to Eric Balchunas, Senior ETF Analysts at Bloomberg, who broke the news on Twitter.
While the US Securities and Exchange Commission (SEC) fends off similar products, the Boston-based multinational financial services corporation will be launching its new Bitcoin spot-based ETF on the Toronto Stock Exchange.
“Semi-schock,” wrote Balchunas, who apparently wasn’t aware of Fidelity’s plans, in a tweet. According to him, Fidelity “will easily be the biggest asset manager to date with a Bitcoin ETF.
SEMI-SHOCK: Fidelity launching a spot bitcoin ETF in Canada this week. Didn't know about this. Will easily be the biggest asset manager to date with a bitcoin ETF. pic.twitter.com/H2XJRBY3O6
— Eric Balchunas (@EricBalchunas) November 30, 2021
Fidelity Advantage Bitcoin ETF, with a ticker FBTC, will be actively managed. The fund will obtain Bitcoin directly, as opposed to acquiring it through a derivative instrument, like futures-based ETFs do.
Earlier this year, the SEC has approved three Bitcoin futures ETFs – from Valkyrie, ProShares and VanEck, but has been reluctant to greenlight a pure-play Bitcoin ETF.
The SEC recently rejected VanEck’s spot Bitcoin ETF application, stating concerns about the product’s volatile nature, unconvinced in the fund’s ability to prevent fraudulent trading and protect investors.
“This should be embarrassing for the SEC that one of America’s biggest, most storied names in investing is forced to go up North to serve its clients,” noted Balchunas.
He argued that Canada was historically ahead of the US in regards to innovative ETFs.
“They gonna have like three years head start,” predicted the analyst, since Canada, compared to the US, has been more welcoming of Bitcoin in TradFi.
Waiting for the SEC
Following the SEC rejecting VanEck’s bid for a spot ETF, Grayscale Investments attorneys issued a letter to the agency, claiming its decision violates the Administrative Protections Act (APA).
Although the SEC’s approval of futures ETFs, signaled that the regulator is warming up to crypto as an investable asset class, the agency’s position on spot ETFs quashed hopes.
According to Grayscale, “the Commission’s standard for approving the listing of spot Bitcoin ETFs is arbitrary and, in practice, impossible to meet.”
Withholding approvals for Bitcoin spot ETFs only shows the SEC’s baseless & wildly inconsistent approach to regulating crypto. https://t.co/qnKkVoeQ3t
— Tom Emmer (@RepTomEmmer) November 30, 2021
“Withholding approvals for Bitcoin spot ETFs only shows the SEC’s baseless & wildly inconsistent approach to regulating crypto,” Minnesota Congressman Tom Emmer commented on Twitter.
Together with Congressman Darren Soto, Emmer questioned the SEC’s discriminating logic against Bitcoin spot ETFs, arguing that futures ETFs are “potentially” more volatile, as they may impose more fees on investors.