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<p>Fidelity may be planning moves in the crypto market with the launch of a bitcoin spot ETF or a potential acquisition of Grayscale.</p>
<p>The world’s third-largest asset manager, Fidelity has grown its digital asset presence significantly over the years. Its cryptocurrency-dedicated offshoot, FDA, received a New York Trust Charter and launched European operations in 2020.&nbsp;</p>
<p>The FDA has spearheaded initiatives such as the Fidelity crypto offering, which allows users to trade <a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">bitcoin</a> and <a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ethereum</a> along with stocks.&nbsp;</p>
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<p>The company has also advocated for the inclusion of digital assets in 401(k) investing, illustrating its belief in the long-term potential of cryptocurrencies.</p>
<p>The exciting part of the current rumors is the direction Fidelity might be taking. According to Andrew Parish, co-founder of Arch Public, Fidelity might be considering a purchase of Grayscale or an application for a bitcoin spot ETF.&nbsp;</p>
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   <p>UPDATE: <a href="https://twitter.com/DigitalAssets?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@DigitalAssets</a> and <a href="https://twitter.com/Fidelity?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Fidelity</a> is about to make a seismic move in crypto via both <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a> and <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>. <br><br>Sources expect Fidelity to either make a bid for <a href="https://twitter.com/Grayscale?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Grayscale</a> or quickly launch their own spot <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#bitcoin</a> ETF. One or both are coming, soon. <br><br>**Blackrock and Fidelity will own…</p>— Andrew (@AP_Abacus) <a href="https://twitter.com/AP_Abacus/status/1670455968608538624?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">June 18, 2023</a>
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<p>Grayscale, currently operating 17 cryptocurrency trusts, is a significant player with the <a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> Trust (GBTC) leading with $16.5 billion AUM.</p>
<p>If Fidelity opts for a bitcoin spot ETF, it would diverge from Grayscale’s trust-based approach by allowing for bitcoin redemption, a feature currently unavailable in the GBTC model.&nbsp;</p>
<p>However, Fidelity’s move would not be without its challenges, as demonstrated by Grayscale’s unsuccessful attempt to convert the GBTC to a bitcoin spot ETF, leading them to sue the <a href="https://crypto.news/hinmann-documents-unsealed-in-ripple-vs-sec-case-binance-faces-more-regulatory-headwinds-weekly-recap/" rel="noopener noreferrer nofollow">Securities Exchange Commission</a> (SEC) in June 2022.</p>
<h3 class="wp-block-heading" id="strong-a-race-with-blackrock-strong"><strong>A race with BlackRock?</strong></h3>
<p>While the crypto world mulls over these possibilities, Fidelity’s move follows closely behind BlackRock’s recent bitcoin spot ETF application, creating a sense of a race among the financial giants.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/blackrock-nears-bitcoin-etf-filing-partnering-with-coinbase-custody/" rel="noopener noreferrer nofollow"> BlackRock nears bitcoin ETF filing, partnering with Coinbase custody </a></p>
<p>BlackRock’s recent filing, seen as a positive step towards legitimizing the industry, stirred optimism and brought attention to its possible implications. The entry of these two asset management titans into the bitcoin market could mark a significant shift in the crypto industry.&nbsp;</p>
<h2 class="wp-block-heading" id="strong-the-road-ahead-strong"><strong>The road ahead</strong></h2>
<p>As Fidelity and BlackRock push the boundaries, they are setting new standards, paving the way for other traditional financial firms to follow suit.&nbsp;</p>
<p>If the rumors turn out to be true, these moves could potentially shake up the U.S. digital asset space and have far-reaching effects on the global crypto market.</p>
<p>Read more: <a href="https://crypto.news/on-chain-data-show-crypto-whales-accumulating-ethereum/" rel="noopener noreferrer nofollow"> On-chain data show crypto whales accumulating ethereum </a></p>

Fidelity may be considering a bitcoin spot ETF

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