Fidelity has met with the SEC regarding a spot Bitcoin fund and submitted a presentation on its ETF workflow.

Asset management giant Fidelity held a meeting with the Securities and Exchange Commission on December 7 regarding its proposed spot Bitcoin ETF, according to a memo posted on the regulator’s website.

Fidelity provided a presentation to regulators titled “bitcoin BTC

+2.40%
ETF Workflow’ with slides detailing the “cash” generation and redemption model.

“Arbitrage and hedging are more efficient with physical generation,” the presentation said. “Self-liquidating ETF market-making firms can act as agency APs for non-self-liquidating ETF market-making firms along with their cryptocurrency affiliates to facilitate efficient arbitrage. Allowing physical creation and redemption increases trading efficiency for all participants and 2 It is important to increase the market price of tea.”

Bitcoin prices have surged over the past few weeks as the market anticipates what could be the final steps toward the SEC’s decision on the proposed spot ETF application. With filings and notes from the meeting undergoing multiple revisions, regulators and asset managers appear to be focusing on the technical aspects of how the proposed fund will operate if approved.

“Creation/redemption language includes both in-kind and cash,” said Bloomberg Intelligence analyst James Seyffart. wrote Earlier on Friday, X commented on VanEck’s revised filing for a proposed spot Bitcoin ETF. “It seems like more and more people are leaving their options to the S-1, but a 19b-4 approval may only allow for cash generation – at least to start with.”

“The key disclosure for this workflow is: ‘Please note: Registered broker-dealer entities do not touch any coins in any workflow,’” said Nate Geraci, president of advisory firm The ETF Store. wrote on. “That’s the SEC’s concern.”

On Friday, Fidelity filed an amended Form S-1 with the SEC for the proposed cash fund.

blackrock meeting

At the Nov. 28 meeting between the SEC and BlackRock on a proposed spot Bitcoin ETF, the asset manager submitted a presentation on a “modified spot model design.”

“During our meeting with Trading & Markets staff on November 20, we learned that the SEC had unresolved We understand you have specific questions: “In the redemption process, we distinguish ourselves from unregistered entities of market makers (“MM-crypto”),” BlackRock said in its presentation to the SEC.

(An update showing that Fidelity has filed an amended Form S-1 with the SEC.)

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