The Listing of Fidelity’s Bitcoin ETF on Cboe
Fidelity has announced that its Bitcoin ETF will be listed on the Cboe BZX Exchange, according to an official statement filed with the SEC. The Cboe is the largest options exchange in the US and offers options on various assets, including BTC. Once Fidelity’s request is approved, it will also offer a Bitcoin spot ETF.
It’s worth noting that the Cboe was the first exchange to offer Bitcoin futures contracts in 2017 but delisted them due to low demand. On the other hand, the Chicago Mercantile Exchange (CME) continues to offer BTC futures. While the CME focuses on futures, the Cboe specializes in options.
Fidelity’s Bitcoin ETF Request and Cboe’s Listing Decision
Fidelity applied for its Fidelity Wise Origin Bitcoin Fund at the end of June. The company has been involved in the crypto market through its subsidiary Fidelity Digital Assets since 2018. As a major player in global financial markets, Fidelity’s Bitcoin spot ETF is expected to have significant success.
Choosing Cboe as the listing exchange may seem curious, but Fidelity generally targets existing customers rather than mass markets.
Bitcoin Spot ETFs
Although there are already Bitcoin spot ETFs available worldwide, the SEC has consistently rejected them in the US. However, ETFs exist in Canada and replicate BTC’s price. There are also ETFs in the US that track BTC’s price but are collateralized with futures contracts from the CME.
Unlike futures and ETFs on futures, which attract speculators, Bitcoin spot ETFs from companies like Fidelity and BlackRock target long-term investors.
The Impact on Price
One significant impact of BTC collateralized ETFs is the withdrawal of Bitcoin from the markets. These ETFs require managers to buy BTC and store them in cold wallets, reducing the supply available for trading. While ETFs may decrease demand for BTC in theory, they target a new audience who have not yet invested in Bitcoin.
If successful, Bitcoin spot ETFs could attract billions of dollars in new capital to the market, potentially benefiting BTC’s price. However, the success of these derivatives remains uncertain and will take time to assess.
Hot Take: Potential Impact of Fidelity’s Bitcoin ETF on Cboe
According to official filings, Fidelity’s Bitcoin ETF will be listed on the Cboe BZX Exchange. This move comes as the SEC is expected to approve the launch of Bitcoin spot ETFs in the near future. With Fidelity’s reputation as a historical giant in financial markets and Cboe’s expertise in options trading, this partnership has the potential to attract significant attention and investment.
The listing decision on Cboe indicates that Fidelity is targeting its existing customers rather than mass markets. By offering a Bitcoin spot ETF, Fidelity aims to provide long-term investment opportunities for investors looking to enter the crypto market.
If successful, these BTC collateralized ETFs could reduce the supply of BTC available for trading and potentially drive up its price. The launch of Bitcoin spot ETFs is eagerly anticipated and could mark a significant milestone in the mainstream adoption of cryptocurrencies.
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