Fidelity and SEC Discuss Spot Bitcoin ETF Application

SEC Discusses Fidelity’s Bitcoin ETF Application

The United States Securities and Exchange Commission (SEC) recently held a meeting with Fidelity to gain more insight into its Bitcoin (BTC) exchange-traded fund (ETF) application.

A filing released on December 7 revealed that two Cboe BZX Exchange representatives, along with six personnel from the SEC and nine people from Fidelity, discussed the Wise Origin Bitcoin Trust during the meeting.

The filing included PowerPoint slides used during the meeting to explain the operational framework of the Bitcoin ETF.

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

Fidelity Submits Spot Bitcoin ETF Application to SEC

Fidelity submitted an application for a spot Bitcoin ETF to the SEC on June 19, shortly after BlackRock and several other asset managers filed for the product just days prior. This move follows the SEC’s rejection of Fidelity’s application for a spot Bitcoin ETF in 2022.

Recently, the SEC has been meeting with spot Bitcoin ETF applicants to discuss various aspects of applications, such as key technical details related to U.S. exchanges listing shares of a spot Bitcoin ETF. Cointelegraph reported on this news.

The SEC’s move to discuss details of a spot Bitcoin ETF with Fidelity, BlackRock, and other asset managers could indicate progress towards the approval of a crypto ETF. Voyager Crypto Exchange and One Crypto have also submitted applications for a spot Bitcoin ETF.

SEC and Crypto ETF Approval

Memos released by the SEC in November revealed that the Commission had met with representatives of BlackRock and Grayscale regarding the approval of a spot Bitcoin ETF.

Speculation has been rife in recent times as to when a spot Bitcoin ETF will be approved. According to Hashdex, one of the applicants among the 13 asset managers, the first U.S. spot Bitcoin ETF could be approved as early as the second quarter of 2024. Dramane Meite, the U.S. and Europe head of product at Hashdex, stated, “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.’”

Eric Balchunas and James Seyffart, analysts from Bloomberg ETF, are still sure that the SEC will approve all Bitcoin ETFs on January 10, which is the deadline for ARK Invest’s application. This is in line with the SEC’s crypto regulations today.