According to CryptoPotato, Simeon Hyman, a global investment strategist at ProShares, has pointed out the deficiencies in the spot Bitcoin market, including discrepancies in prices across exchanges and risks associated with various platforms. This comes as cryptocurrency stakeholders anticipate the potential approval of a series of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission in January.
During an appearance on Bloomberg TV, Hyman emphasized the presence of multiple Bitcoin prices across different exchanges. He also expressed uncertainty regarding the practical functioning of cash creation and redemptions in this context. In the creation and redemption process of ETFs, broker-dealers traditionally exchange the asset itself for ETF shares in an in-kind mechanism. However, in the case of Bitcoin, cash is exchanged with the issuer, who manages the buying and selling of BTC.
Fidelity Investments has taken a significant step toward launching a spot Bitcoin exchange-traded fund (ETF) by filing a registration of securities with the SEC. The firm submitted Form 8-A for its Fidelity Wise Origin Bitcoin Fund, signaling its intent to register it as a publicly traded security. With over $4.5 trillion in assets, Fidelity Investments joining the list of entities seeking approval for a spot Bitcoin ETF could mark a notable development in the broader acceptance of digital assets in traditional investment portfolios. James Seyffart, a Bloomberg ETF Analyst, commented that the Fidelity filing is a securities registration, and the ETF still requires a 19b-4 approval and an effective/approved/completed S-1 document. He added that the 19b-4 approval is pending, and the S-1 document remains in the preliminary stage. Seyffart expects further developments, with attention focused on the coming week.
