SEC rejects Fidelity’s bid to launch a spot Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) rejected Fidelity Investments’ application to register a spot Bitcoin ETF.

The agency cited a lack of joint oversight agreements and an inability to curb fraudulent or manipulative practices in the spot market.

Similar wording had appeared in previous SEC rulings on bitcoin-ETF filings. In January a similar verdict awaited a filing from First Trust и SkyBridge, in December — from WisdomTree, and a month earlier — from VanEck.

Additionally, by February the Commission delayed decisions on applications from Bitwise Asset Management and Grayscale Investments to launch similar products.

Concurrently with the rejection of the spot Bitcoin ETF, Fidelity filed an application with the SEC to list an exchange-traded fund based on shares of metaverse-related companies.

The Fidelity Metaverse ETF will track the Fidelity Metaverse Index, which mirrors the performance of a basket of securities of companies involved in the development, production, distribution or sale of products or services in the metaverses.

Earlier in December, ProShares filed an application with the SEC to launch a similar financial instrument.

Grayscale had previously forecast growth in annual revenue for the Web 3.0 metaverse sector to reach $1 trillion.

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