Fidelity Investments Holds Meeting with SEC Officials for Spot Bitcoin ETF Application

• According to a note released by the SEC, the top-tier investment asset management company, Fidelity Investments, held a meeting with the agency on Thursday to discuss the details of the proposed ETF product.
• The intensity in ETF approvals is a result of technical discussions between the SEC and many ETF applicants as the expected narrow window for the approval of the product is approaching.
• These meetings and discussion topics may indicate that the SEC has completed its review process and is preparing to announce its decision in January.

Fidelity Investments held a meeting with SEC officials for the spot Bitcoin ETF application: Here are the details!

Fidelity Discusses Spot Bitcoin ETF with SEC

Fidelity Investments became the latest potential ETF issuer to meet with the United States Securities and Exchange Commission (SEC) in the latest of several meetings held a few months ago for the proposed spot Bitcoin ETF.

According to a note released by the SEC, the top-tier investment asset management company held a meeting with the agency on Thursday to discuss the details of the proposed ETF product. Fidelity presented a document to the SEC titled “Bitcoin ETF Workflow”; this document includes several slides referring to a “same” creation and redemption model similar to BlackRock’s preferred model.

The alternative to the same model is the cash creation abstract model. Interestingly, this is the redemption mechanism that the SEC is trying to persuade ETF issuers to adopt, but it seems a significant percentage prefers the former.

According to the presentation, “Arbitrage and hedging are more efficient in physical creations. Self-clearing ETF market makers can facilitate efficient arbitrage by acting as Agent APs for Crypto Sponsors, self-clearing ETF market makers. Allowing physical creation and redemption is critical to enhancing trade efficiency and secondary market pricing for all participants.”

SEC Intensifies Review Process

The intensity in potential Bitcoin ETF approvals is a result of technical discussions between the SEC and many ETF applicants as the expected narrow window for the approval of the product is approaching. It is reported that the SEC and other companies they have meetings with delve into detailed topics such as custody arrangements, creation and redemption mechanisms, and investor risk disclosures. This could be a sign that the spot Bitcoin ETF process is reaching its final stages.

A similar meeting took place between the SEC, BlackRock, and Grayscale at different times. Grayscale, in particular, held a series of meetings with the Trading and Markets Division. In one of these meetings, Grayscale announced that it implemented a Transfer Agency and Service Agreement with BNY Mellon for the spot Bitcoin ETF.

These meetings and discussion topics may indicate that the SEC has completed its review process and is preparing to announce its decision in January. Fidelity has taken a step in the journey of the spot Bitcoin ETF and listed it with the ticker FBTC under the Depository Trust & Clearing Corporation (DTCC). BlackRock’s iShares Bitcoin Trust IBTC and Invesco Galaxy Bitcoin ETF BTCO are also listed.