SEC rules on Fidelity's Bitcoin ETF

Bitcoin has lost over 20% this year

The Securities and Exchange Commission nixed another Bitcoin exchange-traded fund (ETF) application. 

The commission said mutual fund giant Fidelity’s application did not satisfy regulators because it failed to show it can protect investors from fraud, as detailed in the SEC ruling. In November, the commission rejected VanEck’s Bitcoin ETF for similar reasons.

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In a statement to FOX Business, Fidelity said:

"While we are disappointed by the outcome of the SEC’s deliberations resulting in today’s disapproval order, we reaffirm our belief in market readiness for a physical bitcoin exchange traded product and look forward to continued constructive dialogue with the SEC.

Ticker Security Last Change Change %
CME CME GROUP INC. 190.15 +1.67 +0.89%

"Fidelity’s comprehensive research on bitcoin trading in global spot and futures markets shows the maturation of these markets and the price discovery leadership of the regulated CME Bitcoin futures market, which satisfies the SEC’s standards for listing approval as applied to many existing spot-backed exchange products currently available for trading, including gold, silver, platinum, palladium and copper," the firm said. 

Ticker Security Last Change Change %
BITO PROSHARES TRUST BITCOIN STRATEGY ETF 18.62 +0.49 +2.70%
GCC WISDOMTREE TRUST ENHANCED COMMODITY STRATEGY 25.49 +0.35 +1.39%
BITQ EXCHANGE TRADED CONCEPTS TRUST BITWISE CRYPTO INNOVATORS E 8.29 +0.29 +3.62%

The SEC has given the green light to ETFs that offer exposure to Bitcoin but are not pure plays, including ProShares Bitcoin Strategy ETF, WisdomTree’s Enhanced Commodity Strategy Fund and the Bitwise Crypto Industry Innovators ETF. 

Bitcoin has declined over 20% this year, impacted in part by the volatility in U.S. stocks, as investors rotate out and around riskier assets.