Asset management giant Fidelity held a meeting with the Securities and Exchange Commission on Dec. 7 about its proposed spot bitcoin ETF, according to a memo on the regulator’s website. “Arbitrage and hedge are more efficient with physical creations,” the presentation stated.
“Self-clearing ETF market maker firms can facilitate efficient arbitrage in acting as Agency AP for non-self-clearing ETF market maker firms with Crypto Affiliates. Bitcoin’s price has surged over the past weeks as the market has anticipated what could be the final steps toward a decision from the SEC about applications it’s been reviewing for proposed spot ETFs.
Amid multiple amendments to filings and memos about meetings, regulators and asset managers have seemed to be focusing on technical aspects. “Create/redeem language includes both in-kind and cash still,” Bloomberg Intelligence analyst James Seyffart wrote on X earlier Friday, commenting about an amended filing for VanEck’s proposed spot bitcoin ETF.
“Looking more and more like everyone will leave that optionality in their S-1’s but 19b-4 approvals may only allow cash creates — at least to start.”