Fidelity Spot Bitcoin ETF Listed, Crypto Market Guzzling With Expected Approval

Fidelity’s Spot Bitcoin ETF is now listed on the Depository Trust and Clearing Corporation (DTCC) marked under the ticker FBTC.

What Happened: Fidelity has listed its Spot Bitcoin ETF on the DTCC under the ticker FBTC. The move was closely observed by the U.S. Securities and Exchange Commission (SEC), which has adopted a cautious approach in approving any of the spot Bitcoin ETFs.

The firm officially filed for an application with the SEC on June 6, 2023. iShares spot Bitcoin ETF proposed by investment firm BlackRock was listed on DTCC on Oct. 24, 2023.

SEC is currently discussing technicalities with ETF applicants like Grayscale and BlackRock thereby extending deadlines for approval. There is an approval window open from Jan. 5 to Jan. 10, 2024.

Amid the Bitcoin rally, the market is keen on expecting a Spot Bitcoin ETF approval, which will push prices further higher. Cathie Wood’s Ark 21Shares Bitcoin ETF (ARKB) has a final approval deadline of Jan.10.

Separately, the SEC has also received an application from Fidelity for a Fidelity spot Ethereum ETF which will track the performance of the Fidelity Ethereum Index.

Why Does It Matter: Fidelity director of global macro Jurrien Timmer believes that having a small share of Bitcoin in many investments is likely to help a huge deal amid the expectation of a Spot Bitcoin ETF approval.

He took to X and said, “Bitcoin’s correlation to the S&P 500 is higher than gold's (+40% over the past five years vs +14%), but it has been coming down over the years and is less than many other assets classes.”

Bloomberg analyst Eric Balchunas said, “Fidelity has revealed their ticker, $FBTC, another boring-on-purpose choice aimed at the Boomerati. Almost all the tickers now set. Next big reveal to watch: the fees (which will prob come out last minute bf launch as issuers reluctant to show their hand).”

With many X users excited about this being a step closer to ETF approval, one user states, “33 days to the last deadline for SEC to decide on Ark Bitcoin Spot ETF. Between now and then SEC will likely approve all or most of the Bitcoin spot applications.”

Negativity Around BTC: The week is seeing a lot of negative comments on Bitcoin/digital assets, as Senator Elizabeth Warren highlighted strong criticism against cryptocurrencies in a CNBC Squawk Box appearance. She adds, “There’s a new threat out there –it’s crypto and it is being used for terrorist financing and it is being used for drug trafficking. We can’t allow this to continue.”

Meanwhile, JPMorgan CEO Jamie Dimon also stated that the crypto sector should be shut down citing the semi-anonymity and instant settlement offered by BTC and cryptocurrency.

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