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Fidelity Engages with SEC on Potential Spot Bitcoin ETF
Fidelity, a major player in financial services, recently engaged in discussions with the U.S. Securities and Exchange Commission (SEC) about its proposed spot bitcoin exchange-traded fund (ETF). This move is akin to that of Blackrock, the global leader in asset management, which is also advocating for the in-kind creation model in its spot bitcoin ETF proposal.
Details of Fidelity’s SEC Consultation
Senior representatives from Fidelity held a meeting with officials from the SEC’s Division of Trading and Markets and the Division of Corporation Finance. The meeting, which took place on Thursday, focused on Fidelity’s application for the Wise Origin Bitcoin Trust, a spot bitcoin ETF. An SEC memorandum detailed the discussion, which revolved around the Cboe BZX’s proposed rule amendment for listing and trading shares of the Wise Origin Bitcoin Trust, as outlined under Cboe BZX Rule 14.11(e)(4).
Fidelity’s presentation to the SEC, attached to the meeting memorandum, outlined the in-kind creation process for the proposed ETF. This included detailed procedures for both “in-kind create” and “in-kind redeem” flows.
Broader Industry Movements
The SEC’s recent interactions aren’t limited to Fidelity. They have also consulted with various exchanges and other applicants for spot bitcoin ETFs. These discussions have led to several applicants, including Blackrock, amending their filings. Blackrock has notably advocated for the in-kind creation model, proposing adjustments to address potential concerns from the SEC.
Investors are keenly awaiting the SEC’s verdict on spot bitcoin ETFs. Vaneck has predicted that the first approvals could come as early as next year’s first quarter. Such approvals could attract over $2.4 billion into these investment vehicles within a short period, according to the asset management company.
Expectations and Predictions
A Moody’s Analytics director anticipates that large asset managers are gearing up to invest in bitcoin in anticipation of spot bitcoin ETF launches. Financial advisors are also poised to offer these new products to their clientele. Notable figures like Skybridge Capital’s Anthony Scaramucci and Galaxy Digital’s Mike Novogratz predict a substantial capital influx into spot bitcoin ETFs from Wall Street and a significant rise in bitcoin’s price post-SEC approval, respectively.
Your Views
What are your perspectives on Fidelity’s recent meeting with the SEC regarding its spot bitcoin ETF application? Do you believe the SEC is on the verge of approving these innovative investment products? Share your thoughts in the comments below.
Frequently Asked Questions (FAQs) about Fidelity Bitcoin ETF
What Was the Purpose of Fidelity’s Meeting with the SEC?
Fidelity met with the SEC to discuss its application for a spot bitcoin ETF, specifically focusing on the in-kind creation model for this financial product.
How Does Fidelity’s Approach to Spot Bitcoin ETF Compare to Blackrock’s?
Both Fidelity and Blackrock are advocating for the in-kind creation model for their respective spot bitcoin ETFs, with Blackrock even proposing a modified version to address potential SEC concerns.
What is the Wise Origin Bitcoin Trust?
The Wise Origin Bitcoin Trust is Fidelity’s proposed spot bitcoin ETF, discussed in their recent meeting with the SEC.
What Impact Could the Approval of Spot Bitcoin ETFs Have on the Market?
The approval of spot bitcoin ETFs is expected to attract significant investment, potentially over $2.4 billion, and could lead to increased adoption of bitcoin among mainstream financial advisors and investors.
What Are the Expectations for Bitcoin’s Price Post-Approval of Spot Bitcoin ETFs?
Industry leaders like Galaxy Digital’s CEO Mike Novogratz predict that the price of bitcoin will rise significantly after the SEC approves spot bitcoin ETFs.
Are Financial Advisors Interested in Spot Bitcoin ETFs?
Yes, financial advisors are reportedly waiting for the launch of spot bitcoin ETFs to offer them to their clients, indicating a high level of interest in these products.
More about Fidelity Bitcoin ETF
- Fidelity and SEC Spot Bitcoin ETF Meeting
- Wise Origin Bitcoin Trust Details
- Blackrock’s In-Kind Creation Model Proposal
- Market Impact of Spot Bitcoin ETF Approval
- Predictions on Bitcoin Price Post-ETF Approval
- Financial Advisors’ Interest in Bitcoin ETFs
5 comments
finally, some positive movement in the ETF space! been waiting for this, hope the SEC approves it. could be a big win for bitcoin investors.
Interesting move by Fidelity, aligning with Blackrock’s approach. The in-kind creation model could be a game changer. Keeping an eye on the SEC’s decision.
wow, this is huge news for the crypto world! Fidelity stepping into the ETF game could really shake things up. excited to see how this plays out.
not sure how I feel about this. The market’s already volatile, do we really need more ways to invest in bitcoin?
Still skeptical about bitcoin ETFs. Remember, high rewards come with high risks. Don’t invest what you can’t afford to lose, people.