Fidelity Digital Assets met with SEC officials privately to push for the approval of their proposed bitcoin exchange-traded fund and argued the cryptocurrency market is now big enough to support it.
The investment firm's president, Tom Jessop, and other executives attended a virtual meeting with the regulator on September 8, according to a presentation that lays out the investor demand for the product.
They cited an in-house survey that found bitcoin exchange-traded products hold massive appeal, US institutions have a strong interest in digital assets, and a significant number of institutional investors currently hold cryptocurrencies.
Fidelity also said market regulators have already approved bitcoin ETPs in Canada, Germany, Switzerland, and Sweden. The firm held the meeting with the SEC as the US continues to delay approval of these investment products.
Although no similar product has been approved in the US yet, the securities regulator is considering applications from more than 20 companies, including Galaxy Digital, VanEck, Valkyrie Investments, and FirstTrust/SkyBridge. It has extended the decision to approve VanEck's ETF by 60 days to November 14.
SEC Chair Gary Gensler has been somewhat open to bitcoin ETFs, suggesting those that comply with the strictest rules for mutual funds could provide investor protection. He has also seemed to lean towards approving a futures-based ETF, over a physical one.
But Fidelity's argument didn't seem to line up so well with Gensler's preferences.