The U.S. Securities and Exchange Commission (SEC) recently engaged in discussions with Fidelity Investments to gain further insights into its spot Bitcoin exchange-traded fund (ETF) application.
A recent filing, dated December 7, revealed that the meeting included two representatives from Cboe BZX Exchange, six SEC personnel, and nine representatives from Fidelity. The focal point of this meeting was the Wise Origin Bitcoin Trust.
Specifically, the discussion revolved around Cboe BZX’s proposed rule change aimed at listing and trading shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4). In addition to verbal discussions, Fidelity presented a comprehensive PowerPoint presentation during the meeting, shedding light on the operational framework of their Bitcoin ETF.
A key highlight from the meeting was the emphasis on the efficiency of arbitrage and hedging through physical creations and redemptions.
Fidelity underscored the importance of permitting physical creation and redemption, asserting that it is critical to enhance trading efficiency and secondary market pricing for all participants.
Fidelity had initially submitted its spot Bitcoin ETF application to the SEC on June 19, closely following similar submissions by BlackRock and several other asset managers.
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However, it’s noteworthy that the SEC had previously rejected Fidelity’s application for a spot Bitcoin ETF in 2022.
This recent engagement with Fidelity follows a pattern of the SEC meeting with various spot Bitcoin ETF applicants to explore the nuances of their applications.
According to reports, these meetings have delved into “key technical details” associated with U.S. exchanges listing shares of a spot Bitcoin ETF.
In addition to Fidelity, the SEC has also held separate meetings with representatives from BlackRock and Grayscale, adding to the growing interest and scrutiny surrounding the approval of spot Bitcoin ETFs in the United States.
While the exact timeline for the approval of a spot Bitcoin ETF in the U.S. remains uncertain, industry participants and analysts have shared differing views.
Hashdex, one of the 13 asset managers in the running, anticipates the first U.S. spot Bitcoin ETF to materialize by the second quarter of 2024.
However, the consensus appears to be shifting towards a matter of “when” rather than “if,” with industry experts increasingly optimistic about the eventual approval of these ETFs.
Bloomberg ETF analysts Eric Balchunas and James Seyffart are particularly confident that January 10 could witness the simultaneous approval of all spot Bitcoin ETFs, aligning with the SEC’s deadline to either approve or deny ARK Invest’s application.
