Spot Bitcoin ETF Race Intensifies as Fidelity and Cboe Join the Fray Amid Surging Institutional Interest

The race for a spot Bitcoin exchange-traded fund in the United States entered a dramatic new phase on June 28, 2023, as Cboe BZX Exchange amended its rule filing with the Securities and Exchange Commission to include a surveillance-sharing agreement, paving the way for multiple financial giants to pursue listings. The move, which comes on the heels of BlackRock’s headline-grabbing spot Bitcoin ETF filing earlier in June, has ignited a wave of institutional interest that is reshaping the crypto market landscape.

TL;DR

• Cboe BZX amended its SEC filing on June 28, 2023, adding a surveillance-sharing agreement for spot Bitcoin ETFs
• Fidelity reportedly filed to list its Wise Origin Bitcoin Trust as a spot Bitcoin ETF
• BlackRock’s earlier June filing triggered a market rally, with BTC holding above $30,000
• EDX Markets, backed by Citadel Securities and Fidelity, launched the same week
• 78% of Bitcoin holders were in profit — the highest proportion recorded in 2023

Cboe BZX Takes a Decisive Step

The Cboe BZX Exchange filed an amended rule change with the SEC on June 28, 2023, specifically addressing one of the key concerns regulators have raised in previous spot Bitcoin ETF rejections: market surveillance. By incorporating a surveillance-sharing agreement with a spot Bitcoin market, Cboe aimed to satisfy the SEC’s longstanding requirement that applicants demonstrate the ability to detect and prevent fraudulent and manipulative acts. This amendment marked a significant evolution from prior attempts, which had largely failed to convince regulators that the underlying Bitcoin market was sufficiently resistant to manipulation.

The filing was not an isolated event. Multiple financial firms were actively lining up spot Bitcoin ETF applications in what industry observers described as an unprecedented wave of institutional conviction in the asset class. The coordinated nature of these filings suggested that Wall Street had collectively decided the timing was right to make another serious push into crypto.

Fidelity Reenters the Arena

Among the most notable developments was the reported filing by Fidelity Investments to list and trade shares of its Wise Origin Bitcoin Trust as a spot Bitcoin ETF. Cboe filed with the SEC to list Fidelity’s product, signaling that one of America’s largest asset managers was once again throwing its weight behind direct Bitcoin exposure for traditional investors. Fidelity had previously launched a spot Bitcoin ETF in Canada but had been unable to bring a similar product to U.S. markets due to regulatory headwinds.

Fidelity’s involvement carried particular weight given the firm’s early and sustained commitment to digital assets. Through Fidelity Digital Assets, the company had been providing custody and trading services for Bitcoin since 2018, making it one of the most crypto-credible traditional finance institutions in the space.

BlackRock Effect Drives Market Momentum

The backdrop to these filings was BlackRock’s June 15 application for a spot Bitcoin ETF through its iShares unit, which had already sent shockwaves through the market. The world’s largest asset manager’s entry into the spot Bitcoin ETF race was widely interpreted as a watershed moment for crypto’s institutional legitimacy. Bitcoin’s price surged in response, pushing above the psychologically important $30,000 level and holding steady near $30,086 as of June 28, according to CoinMarketCap data.

Crypto exchange volumes rebounded noticeably in the wake of the ETF filings, as both retail and institutional traders re-entered the market. The surge was driven largely by renewed optimism that the SEC might finally approve a spot Bitcoin product after years of rejections, and the involvement of firms like BlackRock and Fidelity lent credibility to that thesis.

EDX Markets Launches With Heavyweight Backing

Adding to the institutional momentum, EDX Markets — a new crypto exchange designed specifically for institutional investors — launched during the same week. Backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab, EDX represented a new breed of crypto trading venue built to meet the compliance and operational standards expected by traditional finance. The exchange aimed to address longstanding concerns about market integrity that had been cited by regulators as obstacles to broader institutional participation in crypto.

Profitability Signals Broad Market Health

With Bitcoin’s rally above $30,000, data showed that approximately 78% of Bitcoin holders were in profit — reaching an all-time high proportion for 2023. The metric underscored the degree to which the BlackRock-driven rally had shifted market sentiment from the depths of the 2022 bear market. Ethereum, the second-largest cryptocurrency, was trading around $1,828, while Bitcoin’s total market capitalization stood at approximately $584 billion.

Why This Matters

The convergence of spot Bitcoin ETF filings from BlackRock, Fidelity, and others, combined with the launch of institutional-grade trading infrastructure like EDX Markets, represented a structural shift in how traditional finance was approaching cryptocurrency. Unlike previous bull runs driven by retail speculation or technological hype, this wave was anchored by firms managing trillions of dollars in assets. If the SEC were to approve a spot Bitcoin ETF, it would open the floodgates for pension funds, wealth managers, and retail brokerages to gain direct Bitcoin exposure through familiar investment vehicles — potentially unlocking billions in new capital flows.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.