Fidelity, the third-largest asset manager globally, is rumored to be on the verge of filing for a Bitcoin spot ETF and potentially making a bid for Grayscale, according to industry chatter.
BlackRock, the world’s largest asset manager with $9.57 trillion AUM, recently rumored to be close to applying for a Bitcoin spot ETF, sparking a wave of optimism in the market. Given BlackRock’s significant political influence and an impressive track record with ETF applications, the application is widely expected to be approved. Out of 576 applications submitted to the US Securities and Exchange Commission, BlackRock has only had one rejection, with 575 approvals.
Now, speculation is rife that Fidelity, which manages $4.283 billion in assets, may follow suit by applying for a Bitcoin spot ETF and/or bidding for Grayscale, the leading crypto asset manager currently facing difficulties. These rumors, currently circulating on Twitter, appear to originate from Andrew Parish, co-founder of Arch Public, and have been propagated by notable crypto influencers such as Scott Melker, Michaël van de Poppe, and Ash Crypto.
Fidelity is no stranger to the crypto space. In 2018, it launched Fidelity Digital Assets (FDA), a separate company focused on cryptocurrency. The company offers a range of Bitcoin and crypto products and was the first to provide investors with the option to add crypto assets to their 401(k) retirement accounts. In December 2021, FDA launched the Fidelity Advantage Bitcoin ETF in Canada.
The rumored bid for Grayscale is equally intriguing. Grayscale, considered the “cash cow” of its parent company, Digital Currency Group (DCG), holds over 630,000 BTC in its Bitcoin Grayscale Trust (GBTC). DCG has been grappling with financial difficulties, and a potential bankruptcy was seen as a potentially catastrophic event late last year and early this year. A rescue of Grayscale and the reduction of the GBTC discount, currently at 36.6%, would be bullish for Bitcoin and crypto.
The entry of BlackRock and Fidelity into the Bitcoin market could be seen as a net positive event, driving prices and lending legitimacy to the industry. As NewsBTC reported, BTC may soon have its “gold moment”. After gold received its first spot ETF approval in the US in 2004, the price significantly surged in the subsequent years.
