The race for a U.S.-listed Bitcoin exchange-traded fund (ETF) has intensified with the latest entrant: Fidelity Investments. On March 25, the financial giant submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC), signaling its formal intent to launch the Wise Origin Bitcoin Trust—a proposed Bitcoin ETF designed to track the performance of bitcoin.
According to the filing, the trust aims to reflect the returns of bitcoin, as measured by the Fidelity Bitcoin Index PR, net of expenses and liabilities. If approved, this product would offer institutional and retail investors a regulated, accessible way to gain exposure to bitcoin without holding the underlying asset directly.
FD Funds Management LLC is listed as the sponsor, with Fidelity Service Company acting as the fund’s administrator—both based at Fidelity’s Boston headquarters. Notably, Fidelity Digital Assets, the firm’s crypto-focused subsidiary launched in 2018, will serve as the custodian, underscoring its growing role in bridging traditional finance and digital assets.
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A Growing List of Institutional Applicants
Fidelity joins a rapidly expanding list of major financial firms seeking SEC approval for a spot Bitcoin ETF. So far in 2025, six institutions have filed applications, including:
- WisdomTree Investments
- VanEck Associates Corp
- NYDIG Asset Management
- First Advisors/SkyBridge
- Valkyrie Digital Assets
- Fidelity Investments
This surge reflects mounting pressure from investors demanding easier, safer access to digital assets through familiar financial instruments like ETFs.
NYDIG, backed by Morgan Stanley as an authorized participant, filed its application in February. Its proposed trust aims to track bitcoin’s price minus operational costs, using real-time valuations from major active markets in line with generally accepted accounting principles (GAAP). NYDIG hopes to list its ETF on the New York Stock Exchange (NYSE)—home to approximately $23 trillion in listed assets—highlighting the potential scale of such a product.
Why Hasn’t the SEC Approved Any Yet?
Despite repeated attempts since 2013—starting with the Winklevoss twins’ rejected application—the SEC has yet to greenlight a spot Bitcoin ETF. The commission's primary concerns revolve around market volatility, susceptibility to manipulation, and insufficient regulatory oversight in the crypto space.
Unlike mutual funds or actively managed products, ETFs must maintain a tight correlation with their underlying asset or index. For a Bitcoin ETF, that means precise price tracking and robust safeguards against fraud or price distortion. The SEC remains cautious, emphasizing investor protection above innovation.
However, global precedents suggest these risks can be managed. Canada, for example, has taken a more progressive stance. In recent months, Canadian regulators approved three Bitcoin ETFs:
- Purpose Bitcoin ETF (BTCC)
- Evolve Bitcoin ETF
- A third unnamed fund
Purpose’s BTCC made headlines on February 18, generating $80 million in trading volume within its first hour and closing its debut day with $165 million in trades—representing 1.6% of total Canadian equity market volume. By March 1, it had amassed $657 million in assets under management (AUM), capturing 0.53% of Canada’s entire ETF market—a remarkable feat for a new entrant.
Som Seif, CEO of Purpose Investments, stated that the launch was about filling a critical market gap. The explosive demand proves that investors want secure, compliant, and convenient ways to invest in crypto through regulated channels.
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Investor Demand vs. Regulatory Caution
The contrast between strong investor appetite and regulatory hesitation is stark. Mike Novogratz, CEO of Galaxy Digital, summed it up: “Bitcoin has reached a tipping point—investors don’t want to wait anymore.”
Since 2017, despite periodic market corrections, the overall crypto market cap has trended upward. Bitcoin alone has surpassed a $1 trillion valuation multiple times, drawing interest from pension funds, hedge funds, and retail investors alike.
Yet U.S. financial institutions continue to face roadblocks. Without an approved spot Bitcoin ETF, banks like Goldman Sachs are exploring alternative structures. In one filing, Goldman described a novel instrument: “a redeemable note linked to an interest-bearing ETF,” indicating creative workarounds to meet client demand while navigating regulatory constraints.
Michael Sonnenshein, CEO of Grayscale Investments, believes approval isn't a question of if, but when. “The key issue,” he said in a Business Insider interview, “is timing. But ultimately, that decision rests with the regulators.”
Shifting Regulatory Winds in the U.S.
Signs point to evolving attitudes within U.S. regulatory circles. Over the past year, several developments have laid groundwork for potential ETF approval:
- The Office of the Comptroller of the Currency (OCC) affirmed that national banks may participate in blockchain networks and use stablecoins for payments.
- The IRS updated its 1040 tax form instructions to clarify reporting requirements for “virtual currency.”
- Coinbase’s Nasdaq listing under regulatory scrutiny set a precedent for mainstream crypto integration.
Most notably, Gary Gensler was confirmed by the Senate as Chair of the SEC in early March. Known for his expertise in blockchain and finance—he taught a course on digital assets at MIT—Gensler previously emphasized that regulating crypto exchanges should take priority over ETF approvals. In a 2018 speech at CHAINSIGHTS, he argued that investor protections must come first.
Still, his deep understanding of the technology positions him uniquely to evaluate whether current market conditions satisfy the legal standards for an ETF.
FAQ: Understanding the Bitcoin ETF Landscape
Q: What is a Bitcoin ETF?
A: A Bitcoin ETF is an exchange-traded fund that tracks the price of bitcoin. Investors buy shares through traditional brokerage accounts without needing to store or manage actual bitcoin.
Q: Why does the U.S. not have a spot Bitcoin ETF yet?
A: The SEC cites concerns over market manipulation, liquidity, and custody risks. It requires proof that the underlying market is sufficiently transparent and regulated.
Q: How do Canadian Bitcoin ETFs differ from proposed U.S. ones?
A: They're structurally similar but operate under different regulatory frameworks. Canadian regulators have deemed local markets mature enough to support them, with custodians like Purpose and Evolve providing strong oversight.
Q: Can investors currently access Bitcoin through U.S. financial products?
A: Yes—through futures-based ETFs like the ProShares Bitcoin Strategy ETF (BITO). However, these track futures contracts rather than spot prices and often carry higher volatility and tracking errors.
Q: What would a U.S. spot Bitcoin ETF mean for mainstream adoption?
A: It would mark a watershed moment—bringing crypto into retirement accounts, 401(k)s, and mainstream portfolios via trusted financial platforms.
Q: When might the SEC approve one?
A: While no timeline exists, increased institutional involvement and improved market infrastructure suggest approval could happen within the next few years—if sponsors meet all regulatory requirements.
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Final Outlook: Inevitable Approval on the Horizon?
While immediate approval remains unlikely, the momentum behind Bitcoin ETFs is undeniable. From Fidelity’s deep integration of digital asset services to growing international success stories and shifting regulatory leadership—the stars may finally be aligning.
The U.S., home to the world’s largest financial markets, cannot afford to fall behind indefinitely. With trillions in potential capital waiting on the sidelines, and investor demand at an all-time high, the SEC will eventually need to act—not just to keep pace with innovation, but to protect the very investors it seeks to safeguard.
The question isn’t whether a U.S. Bitcoin ETF will launch—it’s how soon.