The price of bitcoin is approaching a one-year high as Fidelity eyed an ETF.

According to Bloomberg, Bitcoin, the world's largest cryptocurrency, is experiencing a surge in price, nearing its one-year high as asset manager Fidelity reportedly prepares to file for a spot exchange-traded fund (ETF) dedicated to the digital asset.

Bitcoin recently traded at $30,855, showing an upward trend and approaching its one-year high of $31,411 reached on June 23. This rally coincides with reports suggesting that Fidelity is gearing up to submit a filing for a spot Bitcoin ETF. According to a report by crypto trade publication The Block, citing an unnamed source, Fidelity could potentially file the application as early as Tuesday.

The potential introduction of a genuine spot ETF by Fidelity is seen as a significant development that could unlock new cash flows into the market. Darius Tabatabai, the co-founder of the decentralized exchange Vertex Protocol, commented, “A genuine spot ETF would open up the door to flows of new cash, which would drive a trickle-down effect in terms of volumes and interest.”

It's worth noting that this is not Fidelity's first attempt at launching a Bitcoin ETF. The company's previous application for the Wise Origin Bitcoin Trust was denied by the US Securities and Exchange Commission in 2022. Fidelity spokesperson Meghan Joumas declined to comment on the recent filing reports.

Another major player in the asset management industry, BlackRock Inc., filed its application for a spot Bitcoin ETF on June 15. This move contributed to Bitcoin hitting a new high for the year. Bloomberg Intelligence tallied approximately 30 attempts at introducing a spot-Bitcoin product as of last week, reflecting the growing interest in the market.

The cryptocurrency market has experienced renewed enthusiasm following the flurry of applications for spot-Bitcoin ETFs in the United States, which led to digital-asset investment products receiving the largest weekly inflows in nearly a year. Last week alone, these products attracted $199 million, signaling a resurgence of interest in the crypto space following regulatory scrutiny by US authorities.

The filing for a Bitcoin ETF by Fidelity amidst the recent period of regulatory scrutiny brings a much-needed positive outlook to the crypto industry. Jaime Baeza, the founder of crypto hedge fund ANB Investments, remarked, “Despite the regulatory challenges in the US, the moves by top traditional financial institutions such as BlackRock and Fidelity signify that institutional interest and participation remain, injecting credibility and potential stability into the market.”

As the Bitcoin price continues to climb and with more financial institutions exploring the possibility of launching ETFs, the future of cryptocurrencies appears to be gaining increasing credibility and attracting attention from both institutional and retail investors alike.