Fidelity Meets with SEC Officials to Discuss Spot Bitcoin ETF

Securities and Exchange Commission of United States has arranged a meeting with Fidelity to discuss the processing of Wise Origin Bitcoin Trust. Fidelity is one of the top financial firms that are currently working on issuing a spot Bitcoin ETF. The procession will review aspects of the Spot Bitcoin ETF application such as diagrams and functionality.

The agenda of the meeting is based on mulling over aspects such as additional regulatory clarity. The filing was presented in attendance by two representatives of CBOE BZX Exchange, 6 SEC officials, and 9 Fidelity employees.

The debate listed the rule change proposal of CBOE exchange to trade the shares of Wise Origin Bitcoin Trust under Rule 14.11(e) (4).

Fidelity’s Presentation

Representatives from Fidelity also made a presentation. This presentation included the structure of Bitcoin ETF. The filing highlighted arbitrage and hedging as essential elements for the creation of the ETF.

The filing also listed the most efficient method for regulators focusing on redemption and listing of ETF shares to ensure trading efficiency and setting secondary market prices for investors. Fidelity filed Bitcoin spot ETF application on 19th June following BlackRock.

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Nevertheless, the SEC did not rule in favor of Fidelity’s Bitcoin spot ETF in 2022. Meanwhile, SEC is also arranging meetings with other firms that have filed for a spot Bitcoin ETF application.

SEC Officials to Discuss Technical Details with Financial Firms Regarding Spot Bitcoin ETFs

According to media reports, the meetings between regulators and financial firms focus on key technical details regarding share listing process of spot Bitcoin ETF. The memos published by SEC in November indicated that the representatives of the regulatory agency conducted a separate meeting with BlackRock and Grayscale.

Legal and Financial experts and analysts have projected various estimates concerning the approval of the first spot Bitcoin ETF. Hashdex is one of out of 13 spot Bitcoin ETF applicants that anticipate the approval of first Bitcoin ETF before the second quarter of 2024.

Thus far, any exact timelines is not defined but the idea has switched from if to when as per Hashdex executive, Dramane Meite.

On the other hand, Bloomberg ETF analysts Eric Balchunas and James Seyffart have projected that the timeline for approval of first BTC spot ETF may not extend farther than 10th January. The analysts project that the timeline represents completion of all Bitcoin spot ETF applications. The timeline is aligned with the date of approval for ARK Invest’s Bitcoin spot ETF apps.

On the other hand, Mike Belshe CEO of cryptocurrency exchange BitGo has stated that market structures need changes before approval of a spot Bitcoin ETF. He shared his stance regarding the trading product at a time when majority of investors and enterprises are leaning in favor of the Bitcoin spot ETF.

BitGO CEO Shares His Opinion Regarding Bitcoin Spot ETFs

During an interview with Bloomberg on 16th November, Belshe told media that he has an optimistic view towards Bitcoin spot ETFs. At the same time, he has also talked about the importance of adding some new features to the sector before the first spot Bitcoin ETF is listed.

He says that regulators can emphasis on separating crypto exchanges from custodial services providers. He also mentioned former FTX CEO SBF noting that 15 months ago he was parading all around Washington D.C. advocating for a 7 point regulatory framework.

His statement has arrived at a time when there are reports of rise in Bitcoin transaction fees following increasing trading volumes based on optimism around spot Bitcoin ETF approval. At the same time, Bitcoin prices have incremented for 18 successive months as per Cointelegraph analytics.

The report also indicates that BTC prices surpass bear market trading range. At present, there are more than 12 asset management firms that have filed for a spot Bitcoin ETF application.

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