The traditional firm could dominate the US digital asset space for a long time to come.
Asset management firm Fidelity Investments is reportedly planning a major move that can potentially shake the cores of the crypto markets. According to WhaleChart, the firm has two major moves lined up and would be hoping to achieve one or both of them soon. The Monday morning announcement reads:
“Fidelity Investments is preparing to apply for a Bitcoin ETF and submit an offer to acquire Grayscale.”
Fidelity Investments Keen About US Digital Assets Market Dominance
Fidelity, the world’s third-largest asset manager, has always shown itself to be enthusiastic about crypto. While it has been mining Bitcoin since 2014, it launched a crypto-focused arm – Fidelity Digital Assets (FDA) – in 2018, before expanding to Europe in 2020.
Since launching the FDA, Fidelity has introduced various offerings and initiatives to promote investing in digital assets. However, it appears that the ultimate goal might be market dominance. Especially in light of recent events, reports that Fidelity may be considering acquiring Grayscale or applying for a Bitcoin spot ETF could not have emerged at a better time.
Recall, that the world’s largest asset manager BlackRock also recently applied for a Bitcoin spot ETF. That was on June 15. If both firms are successful in their quest, they could both dominate the US digital asset space for a long time to come.
Better Times Ahead
For what it’s worth, the United State Securities and Exchange Commission has declined several applications for a Bitcoin ETF in the past. Even Fidelity had its initial proposal declined in January 2022. But the disapprovals have mostly bordered on the SEC’s fear of potential market manipulation.
Fidelity, however, being a reputable traditional firm, whose proposal reportedly relies on pricing the Bitcoin from a variety of spot markets, might cause the SEC to have a change of heart. More so, there’s a possibility that Fidelity Investments is applying, albeit strategically now that lawmakers are calling for the removal of SEC Chair Gary Gensler.
Without a doubt, getting a Bitcoin ETF approval would be a huge win not just for Fidelity but for every single Bitcoin holder. First and foremost, the approval would add more legitimacy to the flagship cryptocurrency. But more importantly, it would also lead to a massive influx of new investment from retail and institutional clients alike. In the long run, the price of Bitcoin is expected to surge massively.
Nonetheless, the question on everyone’s mind at the moment is whether traditional companies are gradually taking over crypto.
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