Multinational financial services firm Fidelity Investments has lobbied the U.S. Securities and Exchange Commission for approval of its Bitcoin exchange-traded fund (EFT).
On September 8, a private meeting was held between the president of Fidelity Digital Assets, Tom Jessop, six of the firm’s executives, and several SEC officials. Finance executives outlined a number of reasons why the regulator should approve the investment product. These include increased demand for digital assets and related products, the prevalence of similar funds in other countries, and increased adoption of Bitcoin.
A fidelity presentation of the meeting that outlined the benefits of a Bitcoin product stated that regulators of global developed markets have approved Bitcoin exchange-traded products (ETPs) in Canada, Germany, Switzerland, and Sweden.
In response to Comments from SEC Chairman Gary Gensler Last month on the possibility of reviewing only BTC futures products, Fidelity argued that strict adherence to a 1933 law that allowed exchanges to list the products, or that only allowed futures products, was not necessary because the market has matured.
The Securities Act of 1933 was passed after the stock market crash of 1929 to protect investors by establishing laws against misrepresentation and fraudulent activities. Fidelity believes that these laws are too strict and that the markets are now more transparent and established.
“We believe that Bitcoin futures based products are not a necessary intermediate step before a Bitcoin ETP; companies should be able to meet investor demand for direct exposure to Bitcoin […] through ETP because the Bitcoin market has matured and can support them. “
He also argued that the market has already reached “significant size” and has deep liquidity as defined by the SEC’s own standards.
Fidelity applied for a publicly traded Bitcoin product called the Wise Origin Bitcoin Trust in March 2021, and More than 20 similar requests have been made from other companies sinceHowever, the regulator continues to procrastinate.
The Bitwise Bitcoin Strategy ETF is the latest to be hosted in the SEC’s application queue after a presentation September 14.
Fidelity Digital Assets continues to expand its operations despite regulatory red tape. The firm plans to increase the number of employees of its crypto assets by up to 70% by the end of the year, according to Bloomberg.
The SEC is doing things at its own lethargic pace, taking postponed The Bitcoin Trust ETF proposed by VanEck for the third time this year on the same day as the meeting with Fidelity, pushing back the decision date to November 14.