Fidelity Investments recently met with the Securities and Exchange Commission (SEC) about their spot bitcoin exchange-traded fund (ETF) application. Fidelity looks to be pushing for an in-kind creation mechanism for their spot bitcoin ETF, similar to Blackrock, the world’s largest asset manager.
Fidelity and SEC meet to discuss spot Bitcoin ETF application
The United States Securities and Exchange Commission (SEC) recently met with Fidelity Investments to seek additional clarity on its spot Bitcoin (BTC) exchange-traded fund (ETF) application.
Fidelity also provided the…
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The Meeting Between Fidelity and the ETF
According to a memorandum posted on the SEC website, officers from financial services giant Fidelity met with staff from the Securities and Exchange Commission’s Division of Trading and Markets and Division of Corporation Finance on Thursday to discuss the firm’s application for Wise Origin Bitcoin Trust, a spot bitcoin ETF.
According to the memorandum:
Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4) was the topic of the discussion.
According to the presentation attached to Fidelity’s memorandum filed with the SEC during the meeting, the two parties discussed employing the in-kind creation mechanism for Fidelity’s spot bitcoin ETF. The presentation depicts the process for both the “in-kind crate” and “in-kind redeem” flows.
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In addition, the SEC recently met with many exchanges and other spot bitcoin ETF applicants to discuss their applications. Several applicants, including Blackrock, changed their submissions as a result of these conversations.
Notably, Blackrock supports the “in-kind create model” and has even provided a modified form in response to any SEC issues.
Anthony Scaramucci, founder of Skybridge Money, predicts large money inflows from Wall Street into spot bitcoin ETFs. The price of bitcoin will be “significantly higher” when the SEC approves spot bitcoin ETFs, according to Galaxy Digital CEO Mike Novogratz.
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