Fidelity Pursues In-Kind Creation Model in Latest Talks with SEC on Bitcoin ETF
Financial services giant Fidelity engaged in a meeting with the U.S. Securities and Exchange Commission (SEC) to discuss its spot bitcoin exchange-traded fund (ETF) application, the Wise Origin Bitcoin Trust.
The meeting focused on Cboe BZX’s proposed rule change related to listing and trading shares of the ETF. Fidelity is notably exploring the in-kind creation model for its spot bitcoin ETF, as revealed in a presentation submitted during the meeting. This approach involves both the “in-kind create” and “in-kind redeem” flows. Following similar discussions, Blackrock, the world’s largest asset manager, adjusted its filings, supporting the “in-kind create model” and proposing modifications to address SEC concerns.
Investors eagerly anticipate the SEC’s decision on spot bitcoin ETFs, with predictions of initial approvals by Vaneck in the first quarter of the next year, potentially triggering a substantial inflow of over $2.4 billion. Market analysts and industry leaders, including Anthony Scaramucci and Mike Novogratz, anticipate significant capital inflows and a boost in bitcoin prices after SEC approval.
Clever Robot News Desk 12th December 2023
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