Fidelity’s global macro director, Jurrien Timmer, indicated that holding a substantial amount of in portfolios could be significant due to the likelihood of the U.S. Securities and Exchange Commission (SEC) approving the first spot Bitcoin ETF. This suggestion is worth considering for investors during a period when Bitcoin’s price tends to increase.
Despite Bitcoin’s high volatility, Timmer draws attention to the fact that Bitcoin’s risk-reward ratio is well above many assets such as the S&P 500 and gold, and states that BTC has been in a class of its own in terms of risk-reward over this decade.
The spot Bitcoin ETF that Fidelity has submitted for approval to the SEC is listed on the Depository Trust & Clearing Corporation’s website under the abbreviation FBTC. This situation indicates that the ETF is likely to be approved by the U.S. securities regulator in the near future, particularly by February 2024.
The Depository Trust & Clearing Corporation, a post-trade financial services company based in America, provides clearing and settlement services to financial markets.
Fidelity, along with a few financial giants like BlackRock, is waiting for its spot Bitcoin ETF to be approved by the U.S. SEC. The SEC has a short window of opportunity to approve ETFs between January 6-10, 2024. However, the U.S. securities regulator can delay applications citing technical reasons. Experts believe that the SEC may approve multiple applications simultaneously to avoid giving the first-mover advantage to a single company.