The SEC Seeks Clarity on Fidelity’s Bitcoin ETF Application
The United States Securities and Exchange Commission (SEC) recently held a meeting with Fidelity to gain further understanding of its spot Bitcoin exchange-traded fund (ETF) application. The meeting involved representatives from Cboe BZX Exchange, SEC personnel, and individuals from Fidelity. The purpose was to discuss the Wise Origin Bitcoin Trust and its operational framework.
Operational Framework of the Bitcoin ETF
The filing included PowerPoint slides used during the meeting to explain how the Bitcoin ETF operates. The presentation highlighted the importance of physical creations in enhancing trading efficiency and secondary market pricing for all participants. It suggested that self-clearing ETF market maker firms can facilitate efficient arbitrage by acting as Agency AP for non-self-clearing ETF market maker firms with Crypto Affiliates.
Fidelity’s Application for a Spot Bitcoin ETF
Fidelity submitted its application for a spot Bitcoin ETF to the SEC in June 2022, following similar applications from BlackRock and other asset managers. However, the SEC rejected Fidelity’s application. This meeting with Fidelity is part of the SEC’s ongoing discussions with spot Bitcoin ETF applicants to address various aspects of their applications.
Hot Take: Seeking Clarity for Bitcoin ETF Approval
The recent meeting between the SEC and Fidelity indicates that regulators are actively seeking clarity on Bitcoin ETF applications. By engaging in discussions and examining operational frameworks, the SEC aims to ensure efficient arbitrage and trading processes while maintaining market integrity. While Fidelity’s previous application was rejected, these interactions demonstrate a growing interest in approving a spot Bitcoin ETF. As regulatory conversations continue, it remains to be seen how close we are to witnessing the launch of such an investment product.
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