Shortly after several potential spot Bitcoin exchange-traded fund (ETF) issuers sent the U.S. Securities and Exchange Commission (SEC) documents detailing their fees, the regulator responded with minor adjustments that should not affect the timeline for a potential approval.

Fidelity Investments has partnered with Jane Street and Cumberland DRW to handle Bitcoin trades for its proposed spot Bitcoin ETF. The move sets it apart from other potential ETF issuers who are using Coinbase for trading and custody.

Popular cryptocurrency trading platform Bitfinex is removing the availability of its services for some of its UK customers in a bid to comply with local regulations.

Top stories in the Crypto Roundup today:

• Bitcoin ETFs Inch Closer to Approval as SEC Makes Minor Tweaks
• Fidelity Picks Jane Street and Cumberland as Bitcoin ETF Trading Partners
• Bitfinex to Start Restricting Services for Some UK Customers
• AVAX, ADA & SOL Experience Significant AUM Growth in December

Bitcoin ETFs Inch Closer to Approval as SEC Makes Minor Tweaks

Shortly after several potential spot Bitcoin exchange-traded fund (ETF) issuers sent the U.S. Securities and Exchange Commission (SEC) documents detailing their fees, the regulator responded with minor adjustments that should not affect the timeline for a potential approval.

These issuers include BlackRock, Grayscale, and Fidelity, and the recent interaction suggests that active discussions between the SEC and aspiring ETF issuers are ongoing.

The regulator faces a January 10, 2024 deadline for the ARK and 21 Shares application for a spot Bitcoin ETF, with some analysts believing the SEC will approve several Bitcoin ETFs at once on that date.

Late last week, key exchanges submitted amended 19b-4 filings with the regulator on behalf of prominent issuers, joining amended S-1 filings from last month that addressed feedback from the SEC.

The regulator has to give the green light to both the 19b-4 filings and the S-1 filings prior to the ETFs’ debut. Bitcoin ETF proponents believe such a regulated investment product could allow traditional financial institutions to gain exposure to BTC, without needing a wallet.

The SEC has rejected every spot Bitcoin ETF application so far, with the first one dating back to 2013.

Fidelity Picks Jane Street and Cumberland as Bitcoin ETF Trading Partners

Fidelity Investments has partnered with Jane Street and Cumberland DRW to handle Bitcoin trades for its proposed spot Bitcoin ETF. The move sets it apart from other potential ETF issuers who are using Coinbase for trading and custody.

Fidelity Digital Assets, a unit of Fidelity, is set to be the custodian for its Bitcoin ETF, while Jane Street and Cumberland would be its trading partners. Jane Street, known for being where FTX's Sam Bankman-Fried learned how to trade, will also serve as one of Fidelity's authorized participants.

These participants play a crucial role in managing the inflow and outflow of cash in ETFs, facilitating the creation and redemption of shares. According to Fidelity’s filing, the list of authorized participants features several high-profile firms, including JPMorgan Securities, Macquarie Capital, and Virtu Americas.

Fidelity has been enabling retail trading of Bitcoin and Ether and was one of the early applicants for a Bitcoin Trust, though it was rejected by the SEC in January 2022.

Bitfinex to Start Restricting Services for Some UK Customers

Popular cryptocurrency trading platform Bitfinex is removing the availability of its services for some of its UK customers in a bid to comply with local regulations.

The move will impact all individual UK residents who use Bitfinex, as well as UK-based corporate clients who don't qualify for exemptions under the UK’s Financial Promotions Order.

Bitfinex is set to stop verifying new individual accounts for UK residents who joined the platform since November 1, 2023, and from January 10 onward specific existing UK customers won’t be able to make new deposits, enter new contracts, or boost outstanding margin positions.

These users will nevertheless be able to reduce their positions and withdraw their funds from the platform. UK corporate residents classified as high net worth companies, unincorporated associations, or trusts will not experience these changes.

Bitfinex clarifies that the criteria for being a high net worth company are outlined in UK law. The move comes after the UK’s Financial Conduct Authority (FCA) added Bitfinex to its warning list of unauthorized firms.

AVAX, ADA & SOL Experience Significant AUM Growth in December

In December, the assets under management (AUM) for "Other" asset categories in digital asset investment products, notably AVAX, ADA, and SOL, recorded substantial growth. AVAX rose by 125%, ADA by 71%, and SOL by 54.9%.

The growth in Solana was particularly striking, as its products saw an almost 30-fold increase in 2023, elevating its market share to 1.3% from a negligible amount in 2022.

Bitcoin-centric products continued to rise, with their AUM growing by 15.9% to reach around $36.9 billion. Ethereum-based products weren't far behind, registering an 8.11% increase to $9.25 billion.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Digital Asset Management Review.

State of the Crypto by Top Tier Exchange Volume

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