The United States Securities and Exchange Commission (SEC) engaged in discussions with Fidelity Investments regarding its Wise Origin Bitcoin Trust application. The meeting involved a comprehensive review of the application, delving into the operational functionalities and utilizing diagrams for clarity.
Meeting Overview Participants, and Efficient Trading Strategies
During the meeting, representatives from Cboe BZX Exchange, SEC personnel, and Fidelity representatives convened to delve into the intricacies of the Wise Origin Bitcoin Trust. The focus was on Cboe BZX’s proposed rule change related to listing and trading shares under Cboe BZX Rule 14.11(e)(4). Fidelity supplemented the discussion with a detailed presentation, incorporating PowerPoint slides for a visual understanding.
Addressing the U.S. regulator, the filing emphasized the efficiency of arbitrage and hedge strategies with physical creations. The proposal underscored the critical role of allowing for physical creation and redemption. This willl be to enhance trading efficiency and secondary market pricing for all participants.
Spot Bitcoin ETF Application Timeline and Recent Developments
Fidelity initially submitted its spot Bitcoin ETF application to the SEC on June 19. This was after similar applications by BlackRock and other asset managers. However, the SEC had previously rejected Fidelity’s application for a spot Bitcoin ETF in 2022.
Recent reports further highlighted the SEC’s ongoing meetings with spot Bitcoin ETF applicants to discuss various aspects of their applications. Insider information suggested that these discussions covered “key technical details” related to U.S. exchanges listing shares of a spot Bitcoin ETF. Notably, the SEC had separate meetings with representatives from BlackRock and Grayscale.
Speculation, Anticipation and Analysts’ Perspectives
Notably, there has been widespread speculation about the approval timeline for a spot Bitcoin ETF in the U.S. Hashdex, one of the 13 asset managers in the application process, anticipates the approval of the first U.S. spot Bitcoin ETF by the second quarter of 2024. The sentiment around the product has shifted from a question of ‘if’ to a matter of ‘when.’ This is according to Hashdex’s U.S. and Europe head of product, Dramane Meite.
Bloomberg ETF analysts Eric Balchunas and James Seyffart express confidence in the simultaneous approval of all spot Bitcoin ETFs on Jan. 10. This aligns with the SEC’s deadline to either approve or deny ARK Invest’s application, providing a potential milestone in the journey toward a spot Bitcoin ETF in the U.S.