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The recent application for a Bitcoin spot ETF by BlackRock, the world’s largest asset manager with $9.57 trillion AUM, has generated a wave of bullish sentiment in the past week. Experts believe that the application has a high probability of approval, considering BlackRock’s influential political connections and its impressive track record of successful ETF applications. Out of the 576 applications filed with the US Securities and Exchange Commission, only one has been rejected so far, while 575 have been approved.
Adding fuel to the fire, rumors are now circulating on Twitter about another major financial giant joining the Bitcoin ETF race. Fidelity, the third-largest asset manager, is reportedly considering applying for its own spot Bitcoin ETF or making a bid for Grayscale, the troubled leading crypto asset manager.
The source for these rumors appears to be Andrew Parish, co-founder of Arch Public, and they have gained traction through prominent crypto influencers like Scott Melker, Michaël van de Poppe, and Ash Crypto. Parish suggests that Fidelity is planning a significant move in the crypto markets, stating on Twitter:
UPDATE: Fidelity Digital Assets and Fidelity are about to make a seismic move in crypto via both BTC and ETH. Sources expect Fidelity to either make a bid for Grayscale or quickly launch their own spot Bitcoin ETF. One or both are coming, soon. **Blackrock and Fidelity will own the crypto space in the US.
Notably, Fidelity is already well-established in the Bitcoin and crypto space. The asset manager launched Fidelity Digital Assets (FDA), a dedicated crypto-focused company, in 2018. With $4.283 billion AUM, FDA offers various Bitcoin and crypto products, including the option for investors to add crypto assets to their 401(k) retirement accounts. In December 2021, FDA also introduced the Fidelity Advantage Bitcoin ETF in Canada.
The potential bid for Grayscale adds another intriguing dimension to the rumors. Grayscale’s parent company, Digital Currency Group (DCG), has faced financial challenges, and Grayscale itself holds over 630,000 BTC in its Bitcoin Grayscale Trust (GBTC). The potential rescue of Grayscale and the resolution of the current 36.6% GBTC discount could have a bullish impact on Bitcoin and the wider crypto market.
Overall, the entry of BlackRock and Fidelity into the Bitcoin market is seen as a positive development that could boost prices and bring further legitimacy to the industry. Similar to gold’s price surge following the approval of its first spot ETF in the US in 2004, Bitcoin may be on the verge of its own “gold moment.”
At the time of writing, the BTC price is at $26,444, having rebounded from the 200-day EMA (blue line).
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