Financial services multinational Fidelity Investments has urged the United States Securities and Exchange Commission to approve its publicly traded Bitcoin Fund (EFT).
A private meeting was held on September 8 between Fidelity Digital Assets President Tom Jessop, six company executives, and several SEC officials. Financial executives have exposed a number of reasons why the regulator should approve the investment product. These include the rise in demand for digital assets and related products, the prevalence of similar funds in other countries, and the rise in Bitcoin adoption.
A Fidelity presentation featured at the meeting illustrates the benefits of the Bitcoin-based product, highlighting how developed market regulators have already approved Bitcoin Exchange Traded Products (ETPs) in Canada, Germany, Switzerland and Sweden.
In response to comments last month by Gary Gensler, chairman of the SEC, about the possibilities of having only BTC futures products, Fidelity argued that strict adherence to a 1933 law that allows exchanges to list products or only futures products , it is not necessary as the market has matured.
The Securities Act of 1933 was passed following the stock market crash of 1929 in order to protect investors by establishing laws against misrepresentation and fraudulent activity. Fidelity believes that these laws are too strict and that the markets are now more transparent and consolidated.
“We believe that Bitcoin futures 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 ETPs, as the Bitcoin market has matured and can support them ”.
He further stated that the market has already reached “significant size” and has substantial liquidity as defined by the SEC standards.
In March 2021, Fidelity applied for an exchange-traded Bitcoin product, called the Wise Origin Bitcoin Trust, and more than 20 similar applications have been filed by other companies since then. However, the regulator continues to procrastinate.
On September 14, the Bitwise Bitcoin Strategy ETF is the latest to be filed on the SEC filing list.
Related: Fidelity’s crypto ambitions are bigger than expected
Fidelity Digital Assets continues to expand its operations despite regulatory bureaucracy. According to Bloomberg, the company plans to increase the number of employees dedicated to cryptocurrencies by up to 70% by the end of the year.
The SEC, for its part, maintains its own lethargic pace. On the same day of the meeting with Fidelity, he postponed the response (for the third time this year) to November 14 for the Bitcoin Trust ETF proposed by VanEck.