The U.S. Securities and Exchange Commission (SEC) recently held discussions with Fidelity regarding the firm’s spot Bitcoin ETF application. The meeting focused on a proposed rule change that would allow CboeBZX to list and trade shares of Fidelity’s Wise Origin Bitcoin Trust. Fidelity’s ETF model offers exposure to cryptocurrency through a structure involving various industry players. Authorized participants and broker-dealers work with issuers and custodians to create and redeem ETF shares, while unregistered crypto affiliates hold and transfer the actual bitcoin tied to the ETF. This setup enables market participants to gain price exposure without directly handling cryptocurrency.
According to recent reports, the SEC’s talks with ETF applicants are in advanced stages, with discussions centering around key technical details. Anonymous sources suggest that the SEC is likely to approve the relevant ETF applications soon. The SEC has also disclosed meetings with other spot Bitcoin ETF applicants, including BlackRock, where cash and in-kind models were compared. While cash models may be preferable due to regulatory challenges, some proposals may allow both options. ETF analysts estimate a 90% chance of a spot Bitcoin ETF being approved by January 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | Erich Balchunas, James Seyffart |
| Companies | BlackRock, SEC, CboeBZX, Wise Origin Bitcoin Trust, Fidelity |
| Currencies | Bitcoin |
| Securities | None |
