Fidelity Investments has started talking with the United States Securities and Exchange Commission (SEC) about its spot Bitcoin exchange-traded fund (ETF) application. The meeting comes after Fidelity recently listed its spot Bitcoin ETF with the Depository Trust and Clearing Corporation (DTCC), indicating increasing hope that a Bitcoin ETF will be approved.
It is anticipated that Fidelity’s Bitcoin ETF trading and settlement procedures will be streamlined by the DTCC listing, opening the door for a more seamless regulatory approval procedure. Reports say that during the week, the SEC has also met with other assets managers (aside from Fidelity) who are also applicants for the spot ETF application.
These companies include Invesco, BlackRock, and Grayscale, all looking to launch their spot BTC ETF by 2024. Analysis by Cointelegraph’s Ciaran Lyons explained that the confluence of conventional finance and digital assets signifies a critical juncture in the development of the financial terrain, and the conclusions drawn from these conversations could influence the direction of cryptocurrency investment products in the future.
Recent Talks Linked To The Growing Demand For Cryptocurrency Banks
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The continuing dialogue between Fidelity and the SEC has been linked to a larger trend in the industry, where traditional banks are looking for ways to incorporate digital assets into traditional investment portfolios. The cryptocurrency community is currently flooded with predictions, with massive optimism about how the introduction will boost the demand for cryptocurrency institutionally.
Most investors have predicted a $100,000 increase in the BTC price due to the approval. Fidelity applied on BTC ETF to SEC on the 19th of June, a few weeks after BlackRock and a few others submitted their applications. SEC formally rejected the same application in 2022, citing some unclear technicalities.
A recent update from Cointelegraph states that the latest meeting between Fidelity and SEC was based on major technical issues as it affects the United States exchanges listing some of the Spot BTC ETF shares. Hashdex, which is one out of 13 top assets managers that applied has announced that they are optimistic that the first United States Spot BTC ETF will be operational by the second quarter (Q2) of 2024.
SEC Meets Other Applicants, Experts Suggests January 5-10 For Approval
In an attempt to alleviate regulatory worries and clear the path for a safe and regulated investment vehicle connected to Bitcoin, Fidelity has been communicating with the SEC. Lyons added that while conventional financial institutions continue to look into opportunities within the digital asset ecosystem.
The possible approval of a spot Bitcoin ETF may catalyze increased institutional involvement in the cryptocurrency market. A report from Reuters pointed out some major technical areas of the ETF, with aspects like investor risk disclosure, custody arrangements, and creation and redemption technicalities topping the list of significant concerns.
Primary applicants like VanEck and Hashdex have been updating and reviewing their applicants with the SEC, proving their readiness for the proposed approval by the commission. Meanwhile, James Seyffart, an analyst with Bloomberg, explained that January 5-10 will be the best timeline to approve spot BTC ETF.
He also stated that the SEC approves up to nine applications within the stipulated time frame. However, as of press time, BTC has continued to trade around $44,318, rising by 14.25% in profit in the past seven days – with the market capitalization of Bitcoin standing at $ 865.86 Billion at press time.