Key takeaways:
- Fidelity Investments and the US SEC recently met to discuss the latter’s application for a spot Bitcoin ETF and to obtain further clarification.
- The file included PowerPoint presentations that were used in the meeting to show how the Bitcoin ETF operates.
Fidelity Investments and the United States Securities and Exchange Commission (SEC) recently met to discuss the latter’s application for a spot Bitcoin Exchange Traded Fund (ETF) and to obtain further clarification.
Six SEC employees, nine Fidelity employees, and two representatives of the Cboe BZX Exchange gathered to talk about the operations of the Wise Origin Bitcoin Trust, according to a document released on December 7.
“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 file included PowerPoint presentations that were used in the meeting to show how the Bitcoin ETF operates. The filing suggested the best course of action to the US regulator, stating that arbitrage and hedging are more efficient with physical creations:
“Allowing for physical creation and redemption is critical to enhance trading efficiency and secondary market pricing for all participants.”
On June 19, just after BlackRock and a few other asset managers filed for the product, Fidelity submitted a spot Bitcoin ETF application to the SEC.
Nonetheless, Fidelity’s application for a spot Bitcoin ETF in 2022 was already denied by the SEC. This is in response to recent reports that the SEC is holding meetings with prospective Bitcoin ETF applicants to go over several application-related topics.
The approval date of a spot Bitcoin ETF has been the subject of much conjecture in the recent past.
Fidelity has submitted a proposal to establish an Ethereum (ETH)-focused ETF. According to a document published by the exchange on November 17, the proposed Fidelity Ethereum Fund seeks to be listed on an exchange run by Cboe Global Markets. According to the filing, there isn’t a low-risk way for American individual investors to participate in ETH.
