Fidelity Investments urges SEC to approve its Bitcoin ETF

Fidelity Investments urged the U.S. Securities and Exchange Commission (SEC) to approve its bitcoin exchange-traded fund (ETF) in a private meeting, citing reasons why regulators should approve the product, including increased investor interest in virtual currencies, an increase in bitcoin holders and the existence of similar funds in other countries.

Several companies are racing to launch ETFs based on bitcoin or bitcoin futures, which cryptocurrency enthusiasts see as a key step in expanding coverage of virtual currencies. So far, the SEC has taken a cautious approach under Chairman Gary Gensler and his predecessor Jay Clayton. None of the proposals have been approved.

But Gensler hinted this year that he would accept a bitcoin ETF as long as it met the strictest regulations for mutual funds. Gensler also hinted that he is open to an ETF based on bitcoin futures.

In March, Fidelity applied to the SEC to launch a bitcoin ETF called Wise Origin Bitcoin Trust. Companies such as WisdomTree Investments and Ark Investment Management are also seeking regulatory approval for similar products.