The SEC’s rejection of the Fidelity spot Bitcoin ETF, like previous agency rejections of spot Bitcoin ETFs, was based on concerns that the ETF’s design could not prevent potential fraud or manipulation and could therefore pose a threat to investors and the public interest. A week earlier the agency rejected SkyBridge Capital’s application to trade a spot Bitcoin ETF.
That was the same week that BlackRock filed an application for an iShares Blockchain and Tech ETF that would invest in companies involved in the “development, innovation, and utilization of blockchain and crypto technologies.” It would be the first crypto-related fund for the giant asset manager.
Although interest in blockchain and crypto is growing among asset managers, Bitcoin, the biggest, most liquid of cryptocurrencies, is trading near $37,000 down 20% year-to-date and more than 40% below its all-time high of $65,000 reached in February 2021.
