The United States SEC and Fidelity assembled to discuss Fidelity's Wise Bitcoin Origin Trust application, reviewing diagrams and the operational functionality of the product.

The United States Securities and Exchange Commission (SEC) recently met with Fidelity to seek additional clarity on its spot Bitcoin exchange-traded fund (ETF) application.

According to a filing published on December 7, two Cboe BZX Exchange representatives, along with six personnel from the SEC and nine individuals from Fidelity, discussed the workings of the Wise Origin Bitcoin Trust in a meeting.

“The discussion concerned Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4). Fidelity also provided the attached presentation.”
The filing incorporated PowerPoint slides used during the meeting to illustrate the operational framework of the Bitcoin ETF.
“Arbitrage and hedge are more efficient with physical creations,” the filing stated while proposing the most effective strategy to the U.S. regulator:

"Allowing for physical creation and redemption is critical to enhance trading efficiency and secondary market pricing for all participants."
Fidelity submitted an application for a spot Bitcoin ETF to the SEC on June 19, shortly after BlackRock and several other asset managers filed for the product just days prior.

However, the SEC previously rejected Fidelity's application for a spot Bitcoin ETF in 2022.

This comes after recent news that the SEC is meeting with spot Bitcoin ETF applicants to discuss various aspects of applications.

Cointelegraph recently reported that based on industry insider knowledge they were discussing “key technical details” related to U.S. exchanges listing shares of a spot Bitcoin ETF.

Source - Coin Telegraph