Fidelity Meets with SEC to Discuss Spot Bitcoin ETF Application
Financial services giant Fidelity recently had a meeting with the U.S. Securities and Exchange Commission (SEC) to discuss its application for the Wise Origin Bitcoin Trust, a spot bitcoin exchange-traded fund (ETF). The meeting involved officers from Fidelity and staff from the SEC’s Division of Trading and Markets and Division of Corporation Finance. The main topic of discussion was the possibility of using the in-kind creation model for Fidelity’s spot bitcoin ETF.
Details of the Meeting
A memorandum posted on the SEC website reveals that the meeting between Fidelity and the SEC focused on Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust. The meeting also involved a presentation by Fidelity, which outlined the process for the in-kind creation and redemption flows.
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Blackrock and Other Applicants Also Meet with SEC
The SEC has been meeting with various exchanges and spot bitcoin ETF applicants, including Blackrock. Based on these discussions, several applicants have revised their filings. Blackrock, in particular, supports the in-kind creation model and has proposed a modified version to address potential SEC concerns.
Anticipation for SEC’s Decision
Investors are eagerly awaiting the SEC’s decision on spot bitcoin ETFs. Vaneck predicts that initial approvals could come as early as the first quarter of next year, which could lead to a significant inflow of over $2.4 billion into these investment products. Moody’s Analytics expects large asset managers to prepare for these potential launches by buying bitcoin. Financial advisors are also waiting for these products to launch so they can offer them to their clients. Industry experts such as Anthony Scaramucci and Mike Novogratz anticipate a massive influx of capital into spot bitcoin ETFs after SEC approval.
Hot Take: Fidelity Pushes for In-Kind Creation Model in Spot Bitcoin ETF Application
Fidelity’s recent meeting with the SEC regarding its spot bitcoin ETF application signals its push for the in-kind creation model. This model, also advocated by Blackrock, allows for the creation and redemption of ETF shares using the underlying assets instead of cash. By using the in-kind creation model, Fidelity aims to address potential concerns and increase the likelihood of SEC approval. The financial industry is closely watching these developments, with many anticipating the approval of spot bitcoin ETFs, which could have a significant impact on the crypto market and attract substantial investment.
