Fidelity, which is a leading asset manager operating in both US and Canada, was before trying to get approval for spot Bitcoin ETF in the US but the Securities and Exchange Commission continued to dismiss its application on the grounds that it is too volatile for an ETF and end investors might not be fully immune to it. The immunization which is being talked about here is, of course, in terms of investors putting their investment in the spot Bitcoin ETF proving to be too volatile, and they end up losing all of their money. That is why a spot Bitcoin ETF didn’t get approval in the United States, but as for Canada, Fidelity Investments has already received the approval and has launched their spot Bitcoin ETF.
It was believed that the company would be waiting for further response from the Securities and Exchange Commission about whether or not they would be willing to give a try to spot Bitcoin ETF within the US. But it seems that the Securities and Exchange Commission is taking up its time, and Fidelity has no intention of waiting up for an update. Instead, it has chosen Canada for the task and has successfully launched a Bitcoin spot ETF.
Canada Takes the Lead Yet Again Regarding Digital Products
The very definition of this ETF is that investors would be able to buy the actual Bitcoin instead of getting a controlled exposure through a derivative instrument. The very reason why Fidelity is entertaining the launch of this spot Bitcoin ETF is because it has received multiple requests from clients wanting a spot Bitcoin ETF to trade-in. Due to this emerging need for a spot bitcoin ETF, Fidelity has gone forward and launched one in Canada.
It still doesn’t make it clear whether the United States would chip in for a dedicated spot Bitcoin ETF or not. At the moment, the Securities and Exchange Commission has no mind of accepting an application in this regard. Many investors can be seen growling over this situation as to why Canada has the lead when it comes to introducing new crypto products and the opportunities to invest in them over the US.