“Fidelity Digital Assets,” a subsidiary of the investment fund manager “Fidelity Investments,” has published a lengthy post on its blog praising Bitcoin’s inherent characteristics, aiming to prove that the cryptocurrency represents the best digital currency out there.
Also last year, the Massachusetts-based multinational financial company had outlined the unique features of the crypto market’s first cryptocurrency with the intention of spreading awareness among investors.
Now Fidelity will have to wait for a pass from the SEC to finally open the doors to the first Bitcoin spot ETF thus putting a regulated financial instrument with BTC underlying in the hands of its clients.
Let’s look at all the details of the news together.
Summary
Fidelity praises Bitcoin, describing it as the best digital currency around
“Fidelity Digital Assets,” a subsidiary of the financial giant “Fidelity Investments,” published a paper last week explaining some features of Bitcoin that make the cryptocurrency unique.
Explaining their ideas were Chris Kuiper and Jack Neureuter, director of research and research analyst at the investment firm, respectively.
They had published another post on the company’s blog in January last year explaining why investors should view Bitcoin differently from all other digital assets.
More than a year and a half later, here’s where the positivity is back at Fidelity with a new attempt to praise Bitcoin as the world’s first cryptocurrency.
The cryptocurrency continues to increase its adoption rate by garnering membership and market share in the investment world, while other digital assets face considerable obstacles.
Fidelity is so convinced of Bitcoin’s potential that it has gone so far as to publicly refer to it as “the world’s most secure, decentralized and scarce digital currency”.
This year’s entry into the market by several U.S. fund managers such as BlackRock, Invesco, Ark, VanEck, WisdomTree, and Fidelity itself have played a key role in the spread in confidence for Bitcoin in the mainstream financial world.
Indeed, the various requests for approval of a spot ETF by these companies were seen as an important attempt to put the digital currency on the same level as other monetary assets that are now regularly traded in U.S. markets, such as gold.
Hence, Bitcoin continues on its path toward public acceptance in the retail and institutional markets, continuing to overcome various obstacles and moving ever closer toward mass adoption.
Where do we stand with the SEC’s approval of Fidelity’s spot ETF?
While Fidelity and its analysts sing praises for Bitcoin by appreciating the unique and irreplaceable aspects of the decentralized cryptocurrency, all crypto market investors are doing is waiting for the approval of a spot ETF by U.S. federal regulators.
Indeed, SEC enactment of such a financial instrument would be a catalyst for exponential growth in demand toward the world’s first digital currency.
Just think that collectively all asset managers and investment companies that have applied to the SEC for a Bitcoin spot ETF currently control $15 TRILLION in AUM, about 30 times more than the cryptocurrency’s market cap.
It goes without saying that the entry of these giants into the industry could cause a significant increase in trading with a number of new investors ready to buy gold in its digital version.
On the timing front for an approval of a spot etf, or on a possible rejection by the SEC (which seems increasingly unlikely), more or less the entire crypto community agrees that the first quarter of 2024 is the most opportune time for the entry of the long-awaited investment flywheel.
This is because, considering that the U.S. feds have postponed all the various applications to the “final deadline,” and that the latter are mostly set for March, it is hard to imagine that the SEC could reject them all outright and approve Globa X and Franklin Templeton‘s applications later.
Truth be told, many believe that as early as January there could be a surprise in the markets with the etf approval for ARK, which has a final deadline of 10 January 2024.
Here, at this juncture it is more likely that the SEC will approve ARK’s application and then follow up with all the subsequent approvals of the various BlackRock, VanEck, Fidelity, Bitwise and company.
In this regard, Eric Balchunas, senior ETF analyst for Bloomberg, made a key contribution yesterday to take stock of the situation.
In his view, the fact that the SEC is engaging the various issuers in their submissions ( with comments, something that has never happened before) suggests that a rejection is now highly unlikely.
On the other hand, an approval is 75% listed by year-end while the odds go up if we get to January 2024.
By now it seems to be very close to this event so eagerly awaited by American bitcoiners and institutional investors.
BTC price analysis: are we preparing for the bull market?
While the countdown for the approval of a bitcoin spot ETF in Fidelity, BlackRock, VanEck and for other hedge fund managers now seems to have begun, the cryptocurrency remains impassive in the market and still shows no signs of preparing for a bullish market return.
The complex macroeconomic environment in which BTC finds itself, complicated a few days ago by the outbreak of conflict between Palestinians and Israelis, only makes the short-term scenario even more uncertain.
In a global situation in which interest rates in the U.S. are likely to rise further at the upcoming FED meeting overlaid with multiple tensions in different areas around the world can only turn investors away from the more speculative markets and toward the more cautious and safer bond environment.
In any case, considering such an uncertain and worrisome picture, Bitcoin does not seem to be taking a hit and bodes well for a continuation of the position it is currently in.
Prices are above the 50-period exponential moving average on both daily and weekly time frames, which is a good sign and indicates a resilience of the cryptocurrency even in the face of the difficult environment it finds itself in.
Above $28,000 there is considerable resistance to contend with, where a lot of liquidity is flowing in that could act as a stopper for any bullish forays.
On the other hand below $25,000 we see a lot of demand ready to be felt, with the last bulwark of $20,000 ready to step in in the event of a sudden crash to the downside.
The most likely scenario between now and the end of the year is ranging between $20,000 and $28,000, with no particular push on either side.
What is most important at the moment is not to go “to the moon” as bitcoiners would say, but to hold on and make sure that prices do not fall too far, while waiting for Fidelity and its colleagues to open the doors to one of the most anticipated events in history in the cryptocurrency world.
