The U.S. Securities and Exchange Commission (SEC) recently met with Fidelity Investments to seek additional clarity on its spot bitcoin (btc) exchange-traded fund (ETF) application.
According According to a filing released on December 7, two Cboe BZX Exchange representatives, six SEC staff members, and nine Fidelity staff members met to discuss the operation of the Wise Origin bitcoin Trust.
“The discussion concerned Cboe BZX's proposed rule change for listing and trading Wise Origin bitcoin Trust shares under Cboe BZX Rule 14.11(e)(4). Fidelity also provided the accompanying presentation.”
The presentation incorporated PowerPoint slides used during the meeting to illustrate the bitcoin ETF's operating framework.
“Arbitrage and hedging are more efficient with physical creations,” the document states, while proposing the most effective strategy to the US regulator:
“Enabling physical creation and redemption is critical to improving trading efficiency and secondary market pricing for all participants.”
Fidelity filed a one-time bitcoin ETF application with the SEC on June 19, shortly after BlackRock and several other asset managers filed for the product.
However, the SEC previously rejected Fidelity's application for a bitcoin spot ETF in 2022.
This comes after recent news that the SEC will meet with one-time bitcoin ETF applicants to discuss various aspects of their applications.
Cointelegraph recently reported that, based on insider industry knowledge, the meetings discussed “key technical details” related to U.S. exchanges listing shares of a bitcoin spot ETF.
Related: Fidelity seeks green light for ethereum ETF, following BlackRock filing
However, memos released by the SEC in November showed that the commission met separately with representatives from BlackRock and Grayscale.
There has been a lot of speculation of late about when a bitcoin spot ETF will be approved.
Hashdex, one of the applicants among the 13 asset managers, bitcoin-etf-begin-trading-second-quarter-hashdex” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/news/spot-bitcoin-etf-begin-trading-second-quarter-hashdex/amp”>anticipates seeing the first US spot bitcoin ETF by the second quarter of 2024.
“The exact timing of a spot bitcoin ETF in the US remains unclear, but in 2023, the narrative around this product has moved from a question of 'if' to a question of 'when,'” said Dramane, Hashdex's head of product for the US and Europe. Meite.
Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart remain confident that January 10 will mark the simultaneous approval of all spot bitcoin ETFs. This aligns with the SEC's deadline to approve or reject ARK Invest's application.
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