SEC rules on Fidelity’s Bitcoin ETF

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Bitcoin Foundation Chairman Brock Pierce says crypto’s correlation to the stock market is “very real,” which he says indicates that institutional capital in the United States is “in tune.”

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

The commission said mutual fund giant Fidelity’s request did not satisfy regulators because it did not show it could protect investors from fraud, as the SEC’s ruling states. 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 with the outcome of the SEC’s deliberations that culminated in today’s disapproval order, we reaffirm our belief that the market is ready for a physical product traded in bitcoin and we look forward to the continuation of a constructive dialogue with the SEC.

Ticker Title Last change Change %CME CME GROUP INC. 223.09 +2.96 +1.34%

“Fidelity’s extensive research into bitcoin trading in global spot and futures markets shows the maturation of these markets and the price discovery leadership of CME Bitcoin’s regulated futures market, which meets the standards of the SEC regarding listing approvals as applied to many existing cash-backed exchange products currently available for trading, including gold, silver, platinum, palladium and copper,” the company said.

Ticker Security Last Change Change %BITO PROSHARES TRUST BITCOIN STRATEGY ETF 22.86 -0.42 -1.80%GCC WISDOMTREE TRUST ENHANCED COMMODITY STRATEGY 21.83 -0.10 -0.45%BITQ EXCHANGE TRADED CONCEPTS TRUST BITWISE CRYPTO INNOVATORS E 14.06 -0.78 -5.26%

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

Bitcoin is down more than 20% this year, impacted in part by volatility in US equities as investors hover around riskier assets.

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