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Fidelity Spot Bitcoin ETF Now Under Active Discussions With SEC

December 11, 2023 - Around 2 mins mins to read
Key Points:
  • The SEC and Fidelity discussed the Fidelity Spot Bitcoin ETF, focusing on unique “in-kind” creation models.
  • Fidelity’s innovative ETF model streamlines creation and redemption without direct cryptocurrency handling.
  • Despite a previous SEC rejection, recent engagements with various applicants hint at evolving regulatory discussions.
In a discreet meeting, the U.S. Securities and Exchange Commission (SEC) engaged with Fidelity Investments to delve into the intricacies of the Fidelity Spot Bitcoin ETF application. This clandestine gathering unveiled Fidelity’s approach through a comprehensive presentation on “Bitcoin ETF Workflows,” emphasizing the importance of “in-kind” creation and redemption models.

Fidelity Spot Bitcoin ETF Now Under Active Discussions With SEC

SEC-Fidelity Meeting Unveils Innovations in Fidelity Spot Bitcoin ETF Application

The meeting centered around a proposed rule change, enabling CboeBZX to list and trade shares of Fidelity’s Wise Origin Bitcoin Trust. The event saw the participation of the SEC’s Division of Corporate Finance, Fidelity members, and CboeBZX representatives.

Fidelity’s ETF model introduces a unique structure involving authorized participants, broker-dealers, issuers, and custodians, streamlining the creation and redemption of ETF shares. This intermediary setup allows market participants to gain price exposure without direct cryptocurrency handling.

The meeting’s implications extend across the crypto landscape, potentially reshaping the fate of Bitcoin ETFs. The company had previously submitted the Fidelity Spot Bitcoin ETF application to the SEC on June 19, following similar submissions by BlackRock and others. Adding to the narrative, Fidelity filed an amended S-1 form with the SEC for the Fidelity Spot Bitcoin ETF on Friday.

Recent developments reveal the SEC’s engagement with various spot Bitcoin ETF applicants, including BlackRock and Grayscale. The industry has been abuzz with speculation on when the first US-spot Bitcoin ETF will receive approval. Hashdex, among the 13 asset managers, anticipates approval by the second quarter of 2024.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitcoin

Fidelity

SEC

Spot Bitcoin ETF

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Bitcoin

Fidelity Spot Bitcoin ETF Now Under Active Discussions With SEC

Key Points:
  • The SEC and Fidelity discussed the Fidelity Spot Bitcoin ETF, focusing on unique “in-kind” creation models.
  • Fidelity’s innovative ETF model streamlines creation and redemption without direct cryptocurrency handling.
  • Despite a previous SEC rejection, recent engagements with various applicants hint at evolving regulatory discussions.
In a discreet meeting, the U.S. Securities and Exchange Commission (SEC) engaged with Fidelity Investments to delve into the intricacies of the Fidelity Spot Bitcoin ETF application. This clandestine gathering unveiled Fidelity’s approach through a comprehensive presentation on “Bitcoin ETF Workflows,” emphasizing the importance of “in-kind” creation and redemption models.

Fidelity Spot Bitcoin ETF Now Under Active Discussions With SEC

SEC-Fidelity Meeting Unveils Innovations in Fidelity Spot Bitcoin ETF Application

The meeting centered around a proposed rule change, enabling CboeBZX to list and trade shares of Fidelity’s Wise Origin Bitcoin Trust. The event saw the participation of the SEC’s Division of Corporate Finance, Fidelity members, and CboeBZX representatives.

Fidelity’s ETF model introduces a unique structure involving authorized participants, broker-dealers, issuers, and custodians, streamlining the creation and redemption of ETF shares. This intermediary setup allows market participants to gain price exposure without direct cryptocurrency handling.

The meeting’s implications extend across the crypto landscape, potentially reshaping the fate of Bitcoin ETFs. The company had previously submitted the Fidelity Spot Bitcoin ETF application to the SEC on June 19, following similar submissions by BlackRock and others. Adding to the narrative, Fidelity filed an amended S-1 form with the SEC for the Fidelity Spot Bitcoin ETF on Friday.

Recent developments reveal the SEC’s engagement with various spot Bitcoin ETF applicants, including BlackRock and Grayscale. The industry has been abuzz with speculation on when the first US-spot Bitcoin ETF will receive approval. Hashdex, among the 13 asset managers, anticipates approval by the second quarter of 2024.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.