Fidelity Investments has taken a major step toward launching a Bitcoin exchange-traded fund (ETF), lining up prominent trading firms Jane Street and Cumberland DRW to buy and sell the cryptocurrency for the fund.
According to the report, the arrangements were disclosed in a filing with the Securities and Exchange Commission on Monday. Fidelity would use its Digital Assets unit to custody the Bitcoin in the ETF.
The filing comes amid growing optimism that the SEC may finally approve a Bitcoin ETF. The price of Bitcoin rose above $47,000 on Monday, its highest level since April 2022.
Jane Street, known for trading prowess, will also serve as one of Fidelity’s authorized participants, helping direct cash into and out of the ETF to create and redeem shares.
Cumberland DRW, a major crypto trading firm, will act as a Bitcoin trading counterparty along with Jane Street.
Other authorized participants include JPMorgan Securities, Macquarie Capital and Virtu Americas.
The moves show Fidelity’s commitment to launching a Bitcoin ETF after the SEC rejected its previous application in January 2022.
Rival asset managers like BlackRock and Franklin Templeton have selected Coinbase to handle trading and custody for their proposed Bitcoin ETFs.
Fidelity is seen as a leader in the crypto space, already allowing retail customers to trade Bitcoin and Ether. The firm is also backing a new crypto exchange, EDX Markets, that launched last year.
Also Read: New York’s Cryptocurrency Oversight Under Scrutiny
