Ahmet Bedirhan Arvas 
Fidelity made a detailed presentation on its proposed spot Bitcoin ETF in a meeting with the Securities and Exchange Commission (SEC) on December 7th. Leveraging its expertise in asset management, the presentation included a section titled “Bitcoin.” The flows of ETF operations, particularly the creation and redemption mechanisms, were detailed in the presentation.
It may attract your attention: What is the Latest on Bitcoin Spot ETF Application ?
A significant point highlighted in Fidelity’s presentation was the efficiency of arbitrage and hedging with physical creations.
The recent surge in Bitcoin’s price to levels around $44,480 occurred as the SEC approaches decisions on the pending applications for proposed spot ETFs. Changes in filings and notes appear to focus on technical details of how the proposed funds would operate if approved, involving regulators and asset managers.
Bloomberg Intelligence analyst James Seyffart commented on changes made to VanEck’s proposed spot Bitcoin ETF, stating on Friday:
“Creation/redemption language includes both in-kind and cash,” he said. “Everyone is expected to leave this option in their S-1s, but 19b-4 approvals may, at least initially, only allow for cash creation.”
Feel free to share your thoughts on the topic in the comments. Besides, don’t forget to follow us on Telegram, YouTube, and Twitter for more analysis and updates.