Fidelity’s Spot Bitcoin ETF Lands on DTCC Under Ticker FBTC

Fidelity Investments has taken a significant step in the cryptocurrency market by listing its spot Bitcoin Exchange-Traded Fund (ETF) on the Depository Trust and Clearing Corporation (DTCC) marked under the ticker FBTC.

Spot Bitcoin ETFs’ Road to Approval

The journey towards this listing has been closely monitored by the U.S. Securities and Exchange Commission (SEC), who, until maybe now, has been cautious about approving spot cryptocurrency ETFs. 

Recall that the SEC has habitually extended its decision-making period for these applications to its legal limits. This cautious stance has been evident in the SEC’s numerous meetings with key players in the industry, including BlackRock and Grayscale, to discuss the technicalities of these products.

The anticipation surrounding the introduction of spot Bitcoin ETFs has been palpable, especially with Bitcoin’s price swinging impressively high right now. Investors and industry observers are keenly awaiting the SEC’s decision on the ETF applications, including the much-talked-about Ark 21Shares Bitcoin ETF (ARKB), with its final approval deadline set for January 10. The general expectation is tilting towards a positive outcome.

Progress and Discussions

The SEC’s  most recent actions include detailed discussions on the regulatory framework with major issuers like BlackRock and Grayscale. These discussions have revolved around the specifics of ETF models, particularly focusing on the methods of creation and redemption of ETF shares. Despite some differences in opinion, there’s a growing sense that these dialogues are paving the way towards eventual approvals.

The industry currently boasts 13 potential issuers, including some who are seeking to convert existing trusts or alter strategies for their Bitcoin ETFs. These issuers are not new to the crypto scene; many have already launched products related to Bitcoin or Ether futures, as well as broader crypto industry ETFs. 

Interestingly, some prominent names like ProShares, known for their Bitcoin Strategy ETF (BITO), have yet to file for a spot Bitcoin ETF. This could be due to a range of factors, from resource allocation to strategic decisions about product offerings. At the time of writing, Bitcoin’s value stands at $43,513.