Financial services giant Fidelity recently met with the U.S. Securities and Exchange Commission (SEC) regarding its spot bitcoin exchange-traded fund (ETF) application. Like Blackrock, the world’s largest asset manager, Fidelity appears to be pushing to use the in-kind creation model for its spot bitcoin ETF.
Fidelity’s Meeting With SEC
Officers from financial services giant Fidelity met with staff from the U.S. Securities and Exchange Commission’s Division of Trading and Markets and the Division of Corporation Finance on Thursday to discuss the firm’s application for Wise Origin Bitcoin Trust, a spot bitcoin ETF, according to a memorandum posted on the SEC website. The memorandum states:
The discussion concerned Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4).
Based on the presentation attached to the memorandum submitted to the SEC by Fidelity during the meeting, the two parties discussed using the in-kind creation model for Fidelity’s spot bitcoin ETF. The presentation shows the process for the “in-kind crate” flow as well as the “in-kind redeem” flow.
The SEC also recently met with several exchanges and other spot bitcoin ETF applicants regarding their applications. Following these discussions, several applicants, including Blackrock, revised their filings. Notably, Blackrock advocates for the “in-kind create model” and even proposed a modified version to address potential SEC concerns.
Investors are eagerly awaiting the SEC’s decision on spot bitcoin ETFs, with Vaneck predicting initial approvals as early as the first quarter of next year. This could trigger a significant inflow of over $2.4 billion into these investment products within the same timeframe, the asset manager stated.
A director with Moody’s Analytics recently shared his expectation that large asset managers are getting ready to buy bitcoin ahead of spot bitcoin ETF launches. Financial advisors are also reportedly waiting for these products to launch so that they can offer them to their clients. Skybridge Capital founder Anthony Scaramucci foresees massive capital inflow from Wall Street into spot bitcoin ETFs. Galaxy Digital CEO Mike Novogratz said the price of bitcoin will be “significantly higher” after the SEC approves spot bitcoin ETFs.
What do you think about Fidelity meeting with the SEC on its spot bitcoin ETF application? Do you think the SEC is close to approving spot bitcoin ETFs? Let us know in the comments section below.
