The United States Securities and Exchange Commission (SEC) expected Bitcoin ETFWhile continuing to discuss the details of , he held a meeting with Fidelity Investments for a more detailed discussion.
According to a document made public on December 7, key shareholders of Cboe BZX Exchange, SEC officials and Fidelity employees held a meeting to discuss how the product called Wise Origin Bitcoin Trust works. Two people from Cboe BZX Exchange, six people from the SEC and nine people from Fidelity attended this meeting. The purpose of the meeting was to understand and explain the characteristics of the planned Bitcoin ETF.
The crux of the discussion revolved around Cboe BZX’s proposed rule change for listing and trading Wise Origin Bitcoin Trust shares under Cboe BZX Rule 14.11(e)(4). To help illustrate the operational framework of the BTC ETF, Fidelity gave a detailed presentation during the meeting, per the filing.
The presentation highlighted the key strategies and operational mechanisms of the proposed ETF. A noteworthy aspect of the filing was the emphasis on arbitrage and hedging effectiveness through physical creations. The document emphasized the importance of allowing physical creation and redemption, stating that this is crucial to improving trading efficiency and secondary market pricing for all participants.
Fidelity has been trying for a long time to launch a spot Bitcoin ETF. The investment giant first applied to the SEC for this type of ETF on June 19. This application followed similar applications made by BlackRock and some other asset managers. However, the SEC did not approve Fidelity’s spot Bitcoin ETF application in 2022.
The latest meeting signals a renewed attempt by Fidelity to engage with regulators to clarify the complexities and potential benefits of a Bitcoin ETF. The discussions can be interpreted as part of a broader effort in the industry to address regulatory concerns and steer the landscape for the entry of cryptocurrency-based financial products into traditional markets.
The fate of cryptocurrency-related investment products in the US depends on the outcome of negotiations between regulators such as the SEC and large financial companies such as Fidelity. These talks could contribute to creating a more inclusive and regulated environment for digital assets in traditional financial markets and thus increase the acceptance of cryptocurrencies.