SEC, Fidelity Discuss Details of Spot Bitcoin ETF; Approval Speculated for Early 2024
Summary:
The US Securities and Exchange Commission (SEC) recently met with representatives from Fidelity, Cboe BZX Exchange, and others to discuss details of Fidelity's spot Bitcoin exchange-traded fund (ETF) application. The functionality of the Wise Origin Bitcoin Trust was the key point of discussion with Fidelity presenting a PowerPoint presentation for clarity. Amid ongoing speculation, asset management firm Hashdex expects the first US spot Bitcoin ETF to emerge by Q2 2024, while Bloomberg ETF analysts anticipate approvals for all spot Bitcoin ETF applications to coincide with the SEC's deadline for ARK Invest's application on January 10.
Recently, Fidelity had a meeting with the United States Securities and Exchange Commission (SEC) to further clarify its Bitcoin exchange-traded fund (ETF) application. A report made public on December 7 revealed that a meeting took place involving two Cboe BZX Exchange representatives, six SEC representatives, and nine from Fidelity, where they discussed the functionality of the Wise Origin Bitcoin Trust. "The conversation centered around Cboe BZX's proposed alterations to its rules to allow for the listing and trading of shares of the Wise Origin Bitcoin Trust as per Cboe BZX Rule 14.11(e)(4). Fidelity also supplemented the discussion with an attached presentation," the document read. The document included a series of PowerPoint slides demonstrating the operational constructs of the Bitcoin ETF. The filing stressed the role of arbitrage and hedge in achieving efficiency, especially regarding tangible creations, and proposed an optimal strategy to the U.S. regulator. The report comes amid news that the SEC has been holding meetings with applicants of the spot Bitcoin ETF to illuminate various facets of the product. As per a recent article by Cointelegraph, based on industry insider information, technical details of U.S. exchanges listing shares of a spot Bitcoin ETF were being discussed. In separate November meetings, however, the SEC met with representatives from BlackRock and Grayscale. The speculation around the time of a spot Bitcoin ETF approval continues to heighten. Hashdex, one of the 13 asset management firms that have applied, expects to witness the first U.S. spot Bitcoin ETF by Q2 2024. But the issue of the exact launch timeline remains. "In 2023, the discourse around this product changed from a matter of 'if' to one of 'when,'" said Dramane Meite, Hashdex's head of product in the U.S. and Europe. On another note, Bloomberg ETF analysts Eric Balchunas and James Seyffart are optimistic that all spot Bitcoin ETFs will be approved on January 10, in line with the SEC's deadline to either approve or deny ARK Invest's application.
Published At
12/9/2023 5:04:35 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.