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Fidelity and SEC meet to discuss spot Bitcoin ETF application

The United States SEC and Fidelity met to discuss Fidelity’s Wise Origin Bitcoin Trust application, reviewing diagrams and the operational functionality of the product.



Source: Cointelegraph

The United States Securities and Exchange Commission (SEC) recently met with Fidelity Investments to seek additional clarity on its spot Bitcoin BTC $41,558 exchange-traded fund (ETF) application.

According to a filing published on Dec. 7, two Cboe BZX Exchange representatives, six SEC personnel and nine Fidelity personnel met to discuss the workings of the Wise Origin Bitcoin Trust.

“The discussion concerned Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4). Fidelity also provided the attached presentation.”

The filing incorporated PowerPoint slides used during the meeting to illustrate the operational framework of the Bitcoin ETF.

AP as agency model graph. Source: SEC

“Arbitrage and hedge are more efficient with physical creations,” the filing stated while proposing the most effective strategy to the U.S. regulator:

“Allowing for physical creation and redemption is critical to enhance trading efficiency and secondary market pricing for all participants.”

Fidelity submitted a spot Bitcoin ETF application to the SEC on June 19, shortly after BlackRock and several other asset managers filed for the product

However, the SEC previously rejected Fidelity’s application for a spot Bitcoin ETF in 2022.

This comes after recent news that the SEC is meeting with spot Bitcoin ETF applicants to discuss various aspects of their applications. 

Cointelegraph recently reported that based on industry insider knowledge, the meetings discussed “key technical details” related to U.S. exchanges listing shares of a spot Bitcoin ETF.

However, memos released by the SEC in November showed the commission separately met with representatives of BlackRock and Grayscale.

There has been much speculation in recent times over when a spot Bitcoin ETF will be approved. 

Hashdex, one of the applicants among the 13 asset managers, anticipates seeing the first U.S. spot Bitcoin ETF by the second quarter of 2024.

“The exact timing of a spot Bitcoin ETF in the U.S. remains unclear, but in 2023, the narrative around this product switched from a question of ‘if’ to a matter of ‘when,’” said Hashdex’s U.S. and Europe head of product Dramane Meite.

Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart remain confident that Jan. 10 will mark the simultaneous approval of all spot Bitcoin ETFs. This aligns with the SEC’s deadline to either approve or deny ARK Invest’s application.

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