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Cboe Gives Nod To Fidelity Bitcoin ETF Listing, But SEC Mum

Cboe Gives Nod To Fidelity Bitcoin ETF Listing, But SEC Mum

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United States-based Cboe has given the Fidelity Wise Origin Bitcoin Fund the nod to be listed under the FBTC ticker, according to a new Securities and Exchange Fund filing. 

However, the SEC has so far continued to maintain silence on the developments. 

Cboe Accepts Registration 

Fidelity Wise Origin Bitcoin Fund, in a filing with the United States Securities and Exchange Commission on the 3rd of January, stated it planned to register its shares as securities listed on the Cboe BZX exchange. However, the filing, while part of the entire process of registering an ETF, does not suggest the SEC would give its approval to the investment vehicle. The SEC has a week before it needs to approve, delay, or reject its decisions regarding a spot Bitcoin ETF. 

Bloomberg ETF analyst James Seyffart stated that he believes this to be a routine securities registration. Seyffart stated on X, 

“My understanding here is that this is just a securities registration. In order to list, the ETF still needs a 19b-4 approval, and they need an effective/approved/completed S-1 document. No 19b-4 yet [...] I’m still looking towards next week.”

The analyst also cited the registration of Bitwise’s spot Bitcoin ETF registration with NYSE Arca, which was filed on the 29th of December, 2023, adding that both filings don’t mean they are approved or anything as yet. Volatility Shares Trust had also filed a Form 8-A with the SEC back in June, ahead of its launch to list the shares of a leveraged Bitcoin futures ETF on Cboe. 

Deadline Fast Approaching 

Social media users were confused about the distinction between a full SEC approval of a spot Bitcoin ETF and registration with a US exchange. Many experts, including Seyffart, have speculated that the SEC could approve several spot Bitcoin ETF applications ahead of the 10th of January deadline for a crypto investment vehicle from ARK Invest and 21 Shares. 

The Securities and Exchange Commission has never approved a spot Bitcoin ETF for listing and trading on a US exchange. This is despite several applications from asset managers, including Invesco Galaxy, Bitwise, WisdomTree, Fidelity, VanEck, and Valkyrie. However, the SEC has given the green light for investment vehicles linked to Bitcoin (BTC) and Ether (ETH) futures. Industry watchers believe that a spot Bitcoin ETF approval could drive crypto adoption and the acceptance of blockchain technology. 

Markets Wait In Anticipation 

A spot Bitcoin ETF would allow traditional investors to gain access to Bitcoin without the need to purchase the asset directly. Analysts expect a rush of Wall Street investor money into crypto should an ETF be approved. However, the SEC has been reluctant to give its seal of approval. 

Over the years, Bitcoin ETF applicants have faced numerous rejections in their efforts, with the SEC citing the potential for market manipulation as the key reason for its reluctance to give approval. At the moment, with even the mere suggestion that Bitcoin ETF applications may get rejected leads to markets tanking, the listing can be viewed as a positive development. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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