Will Fidelity’s spot bitcoin ETF launch in Canada force the hand of US regulators?

Fidelity earlier this month launched a spot bitcoin exchange-traded fund (ETF) offering in Canada, a product which differs from bitcoin-linked ETFs currently approved in the U.S., which are bitcoin futures-based ETFs.

Why should we care?
ETFs backed by “physically settled bitcoin” are available in Europe and Canada, where regulators approved those funds within the past year. Meanwhile, U.S. investors can access bitcoin futures ETFs from ProShares, Valkyrie, and VanEck. Fidelity applied for approval from U.S. regulators for a spot bitcoin ETF, but the SEC has yet to approve it. Some industry observers suggest this puts U.S. regulators in an odd position. “This should be embarrassing for the SEC that one of America's biggest, most storied names in investing is forced to go up North to serve its clients,” one analyst tweeted. Canada’s moves, by contrast, suggest an openness to the expansion of access to crypto as an asset class, which is music to Fidelity’s ears. “We believe that cryptocurrency is a valid asset class that we would like to provide as an investment option for retail investors in Canada by including this in our product offering," a Fidelity spokesperson said in a statement.