Fidelity and SEC meet to discuss filing for spot Bitcoin ETF.

The U.S. Securities and Exchange Commission (SEC) recently met with Fidelity to seek additional clarity on applications for a Bitcoin (BTC) exchange-traded fund (ETF).

According to documents released on December 7, two representatives of the Cboe BZX Exchange discussed the affairs of the Wise Origin Bitcoin Trust in a meeting with six SEC employees and nine Fidelity employees.

“This discussion concerns Cboe BZX’s proposed rule changes for listing and trading the shares of the Wise Origin Bitcoin Trust pursuant to Cboe BZX Rule 14.11(e)(4). Fidelity also provided an attached presentation.”

The filing includes PowerPoint slides used during the meeting to explain the Bitcoin ETF’s operating framework.

“Arbitrage and hedging are more efficient in physical creation,” the filing states, suggesting to U.S. regulators the most effective strategies.

“Allowing physical creation and redemption is important to improve transaction efficiency and secondary market pricing for all participants.”

Fidelity filed its spot Bitcoin ETF application with the SEC on June 19, shortly after BlackRock and several other asset managers filed for such products just days earlier.

However, the SEC previously rejected Fidelity’s application for a 2022 spot Bitcoin ETF.

This comes after recent news that the SEC is meeting with spot Bitcoin ETF applicants to discuss various aspects of their applications.

Cointelegraph recently reported that “key technical details” related to a U.S. exchange listing shares of a spot Bitcoin ETF are being discussed, based on insider knowledge of the industry.

Related: Fidelity Seeks Approval for Ethereum ETF Following BlackRock’s Filing.

But a memo released by the SEC in November shows the committee met separately with representatives of BlackRock and Grayscale.

There has been a lot of speculation recently as to when a spot Bitcoin ETF would be approved.

Hashdex, one of 13 asset managers applying, expects to launch the first U.S. spot Bitcoin ETF by the second quarter of 2024.

“The exact timing of a U.S. spot Bitcoin ETF is unclear, but the narrative surrounding this product in 2023 has shifted from a question of ‘if’ to a question of ‘when,’” said Dramane, Hashdex’s head of U.S. and European products. . Mayte.

Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart are confident that January 10th will mark the simultaneous approval of all spot Bitcoin ETFs. This coincides with the SEC’s deadline to approve or deny ARK Invest’s application.

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