The world’s largest cryptocurrency is currently under pressure as the BTC price tanked 5% from Wednesday’s levels of around $57,000. This has pushed the BTC price sub $53,000 as the cryptocurrency’s valuations drop below $1 trillion.

Interestingly, the recent BTC price correction comes despite financial giant Fidelity Investments applied for a Bitcoin ETF late Wednesday, March 24. As per the Form S-1 filing with the U.S. Securities and Exchange Commission (SEC) a preliminary registration has been made for the Wise Origin Bitcoin Trust.

As CNBC reports, Fidelity subsidiary FD Funds Management shall be offering the financial backing for the fund. Besides, the parent company has also confirmed filing the prospectus to sponsor a Bitcoin ETF.

Upon approval by the U.S. SEC, the Fidelity Bitcoin ETF will track the performance of Bitcoin measured on the Fidelity Bitcoin Index. As the Bitcoin ETF race catches up among U.S. financial institutions, investors are keenly observing the developments.

So far, the SEC has yet to approve the first Bitcoin ETF for the U.S. market. There are currently six U.S. Bitcoin ETFs currently awaiting SEC approval.

There are now at least 6 US #Bitcoin ETF applications awaiting approval from:

WisdomTree
VanEck
NYDIG Asset Management
Valkyrie Digital Assets
Skybridge and First Trust
Fidelity Investments

— Bloqport (@Bloqport) March 24, 2021

The Fidelity-backed Trust is not intending to sell Bitcoins, however, it shall use the cryptocurrency for paying certain expenses. As per the IRS guidelines this shall still be treated as a sale of digital currency. In an email statement to Bloomberg, Fidelity wrote:

“The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions. An increasingly wide range of investors seeking access to Bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets.”

Bitcoin (BTC) Under Pressure As Institutional Interest Wanes off

Bitcoin has been trading sideways and continues to remain under pressure over the last week. On Wednesday, the Tesla Bitcoin news helped the world’s largest cryptocurrency to reverse its trajectory and move north. However, it wasn’t sufficient to keep the momentum ahead.

After a massive bull-run backed by institutions, there seems to be a lack of additional institutional fuel to keep the Bitcoin momentum going further. On the other hand, on-chain data provider Santiment notes that Bitcoin is currently seeing the lowest rate of token circulation vs market cap.

For the first time since September 2020, #Bitcoin‘s level of token circulation is not justifying a #bullish divergence based on $BTC‘s market cap, according to our popular NVT Sansheets model.

Copy it here and plug in your Sanbase PRO API to track. https://t.co/cKYNwbfzJ8 pic.twitter.com/DAHNS18qcp

— Santiment (@santimentfeed) March 25, 2021

There could be further pain ahead as $6 billion worth of options contracts are set to expire by this Friday. However, the BTC price prediction and expectations for April stand at $80K.

This Friday $6 billion in options contracts are set to expire. #Bitcoin price expectations for April are high with lots of investors placing their new bets on $80k. pic.twitter.com/xRipoAaD1F

— Jan & Yann (@Negentropic_) March 24, 2021