SEC and Fidelity Discuss the Potential of a Spot Bitcoin ETF

• Positive Indications for Bitcoin ETFs as SEC Engages with Fidelity Investments
• SEC and Fidelity Meeting Details
• Importance of 'In-Kind' Creations and Redemptions
• Anticipation Builds as SEC Reviews Multiple Bitcoin ETF Applications
• BlackRock's Interaction with SEC
• Boosting the Hype: Fidelity Places Spot Bitcoin ETF on DTCC

Positive Indications for Bitcoin ETFs as SEC Engages with Fidelity Investments

Fidelity Investments recently had a meeting with the United States Securities and Exchange Commission (SEC) to discuss their Spot Bitcoin$42,260 -0.64% Exchange-Traded Fund (ETF) application. This engagement revolved around Fidelity's ongoing application and included a comprehensive presentation on ETF workflows.

SEC and Fidelity Meeting Details

Information available on the regulator's website shows that Fidelity shared a presentation with the title Bitcoin ETF Workflows. This presentation also contained detailed slides that illustrated In-Kind creation and redemption models.

Importance of 'In-Kind' Creations and Redemptions

The presented materials indicated that Arbitrage and hedge are more efficient with physical creations. As per the presentation, self-clearing ETF market maker firms can facilitate efficient arbitrage acting as Agency AP for non-self-clearing ETF market maker firms with Crypto Affiliates. The materials further highlighted the significance of allowing physical creation and redemption, stating that it's crucial for improving trading efficiency and secondary market pricing for all participants.

Anticipation Builds as SEC Reviews Multiple Bitcoin ETF Applications

In recent weeks, the SEC has been carefully reviewing numerous Spot Bitcoin ETF applications. The expectation of the first ETF approval has incited a surge of optimism, causing the entire crypto market to escalate. Bitcoin, in particular, has ridden this wave of optimism, climbing above the $43,000 mark. Some of the notable applications under review come from investment giants like BlackRock, Grayscale, and of course, Fidelity.

BlackRock's Interaction with SEC

BlackRock, another investment behemoth, had a similar meeting with the SEC in November. Their discussions revolved around their pending Bitcoin ETF application and featured a presentation about a Revised In-Kind Model Design.

Boosting the Hype: Fidelity Places Spot Bitcoin ETF on DTCC

In a significant development, Fidelity Investments succeeded in placing its spot Bitcoin ETF on the Depository Trust and Clearing Corporation (DTCC) early Friday. This move is seen as a key step towards securing official approval, further fuelling the anticipation around bitcoin ETFs.

Edited by Jonathan Stoker