According to Coincu, the U.S. Securities and Exchange Commission (SEC) held a discreet meeting with Fidelity Investments to discuss the Fidelity Spot Bitcoin ETF application. The meeting focused on Fidelity's innovative 'in-kind' creation and redemption models, which streamline the process without direct cryptocurrency handling. Participants included representatives from the SEC's Division of Corporate Finance, Fidelity, and CboeBZX.
The proposed rule change would allow CboeBZX to list and trade shares of Fidelity’s Wise Origin Bitcoin Trust. Fidelity's ETF model introduces a unique structure involving authorized participants, broker-dealers, issuers, and custodians. This intermediary setup enables market participants to gain price exposure without directly handling cryptocurrencies. The implications of the meeting could potentially reshape the fate of Bitcoin ETFs.
Fidelity submitted the Spot Bitcoin ETF application to the SEC on June 19, following similar submissions by BlackRock and others. The company also filed an amended S-1 form with the SEC for the Fidelity Spot Bitcoin ETF on Friday. Recent developments show the SEC engaging with various spot Bitcoin ETF applicants, including BlackRock and Grayscale. The industry is speculating on when the first US-spot Bitcoin ETF will receive approval, with Hashdex among the 13 asset managers anticipating approval by the second quarter of 2024.
