Immediately just after the SEC announced its selection to reject a Bitcoin ETF, Fidelity Investment Corporation filed a new application to open a metaverse sector ETF.
The SEC continues to say no to the Bitcoin spot ETF
On the evening of January 27, the United States Securities and Exchange Commission (SEC) announced its selection to reject investment group Fidelity Investments’ request to open a Bitcoin ETF.
Fidelity’s Bitcoin ETF, Wise Origin Bitcoin Trust, initially filed with the SEC in March 2021, will be an ETF investment products primarily based on Bitcoin’s spot selling price. This is the primary motive why Fidelity’s proposal was rejected, simply because the SEC has so far explained no to spot Bitcoin ETFs.
A representative of Fidelity explained:
“While disappointed with the SEC’s decision, we remain firmly convinced that the market is ready for a physical fund traded in Bitcoin and look forward to further constructive conversations with the Commission.”
As Cointelegraph reported, the SEC has only accredited 3 Bitcoin ETFs in the US, ProShares, Valkyrie, and VanEck, all of which are primarily based on Bitcoin futures.
SEC Chairman Gary Gensler explained that the stance of saying no to the Bitcoin spot ETF is simply because the US does not but have a law to regulate cryptocurrency, but it does have a regulatory entire body for futures trading, the Exchange Commission. Commodity Futures (CFTC), which Gensler also chaired from 2009 to 2014.
Previously, the SEC also rejected the First Trust / SkyBirdge Bitcoin ETF spot in January 2022, Valkyrie / Kryptoin in December 2021, and VanEck and Wisdom Tree in November 2021.
Coming March sixteen, the SEC will make a selection with the StoneRidge / NYDIG Bitcoin spot ETF proposal, with a substantial probability of becoming rejected.
Fidelity was officially Genzianato, find the # six murder of the bitcoin ETF and count. https://t.co/vEtz1p5Vwb
– Eric Balchunas (@EricBalchunas) January 27, 2022
The Bitcoin ETF was a crucial driver of Bitcoin’s selling price hitting new highs in the time period October-November 2021, but as the marketplace entered the correction phase from December to the existing, the world’s enthusiasm enhanced. .
Metaverse ETF “on the throne”
However, alternatively of accepting defeat, on the morning of January 28, Fidelity submitted a new ETF proposal to the SEC, which tracks corporations energetic in the metaverse. In distinct, Metaverse Fidelity ETF will track the movements of corporations that are producing, issuing or marketing goods / providers connected to the development and growth of the virtual universe of the metaverse.
4th Metaverse ETF coming by way of Fidelity (excellent indicator for this theme if they launch 1) https://t.co/j47sduwscE
– Eric Balchunas (@EricBalchunas) January 27, 2022
With the rise of the metaverse in the fourth quarter of 2021, the interest of each classic and cryptocurrency corporations has turned to this location, such as ETF units. In December, ProShares filed an application for a Metaverse ETF with the SEC. Meanwhile, four important fund managers in Korea have also listed metaverse ETF goods on their platforms.
On the evening of January 27, a metaverse ETF named the Subversive Metaverse ETF (codenamed PUNK) was launched on the US stock exchange Cboe. The fund will track the share costs of each classic US technologies and crypto corporations, such as Block (the new identify of Square, the crypto payment organization of former Twitter CEO Jack Dorsey), Alphabet, Microsoft, Sony, the exchange Coinbase, the Galaxy Digital crypto financial institution and Roblox gaming platform.
$ PUNK https://t.co/nBYPFrIKo8 pic.twitter.com/jAB2APsML9
– Michael Auerbach (@msauerbach) January 27, 2022
In distinct, the fund does not include things like Meta, the new identify of Facebook just after the social network has oriented the development of the metaverse. Michael Auerbach, founder of Subversive Capital Advisor, who produced the aforementioned ETF, exposed the motive not to include things like Meta simply because he thinks Mark Zuckerberg’s social network lacks credibility in solving censorship-connected difficulties. The Subversive Capital Advisor fund is even quick marketing the shares of Facebook, the only organization quick of 59 stocks in the fund’s portfolio. Furthermore, there are also a lot of opinions that the Facebook metaverse is basically just a way for the social network to gather far more private info of end users.
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