SEC and Fidelity discuss physical creation and redemption mechanism for spot Bitcoin ETF
According to Daily Planet, the SEC has met with Fidelity regarding the spot Bitcoin ETF and discussed the physical creation and redemption mechanism. Fidelity provided regulators with a presentation titled “Bitcoin ETF Workflow,” detailing slides on the “in-kind” creation and redemption model.
The presentation states: “With physical creation, arbitrage and hedging are more efficient, and self-clearing ETF market-making firms can serve as proxy APs for non-self-clearing ETF market-making firms with cryptocurrency affiliates, facilitating efficient arbitrage. Allowing physical creation and Redemptions are critical to improving transaction efficiency and secondary market pricing for all participants.”
According to Daily Planet, the SEC has met with Fidelity regarding the spot Bitcoin ETF and discussed the physical creation and redemption mechanism. Fidelity provided regulators with a presentation titled “Bitcoin ETF Workflow,” detailing slides on the “in-kind” creation and redemption model.
The presentation states: “With physical creation, arbitrage and hedging are more efficient, and self-clearing ETF market-making firms can serve as proxy APs for non-self-clearing ETF market-making firms with cryptocurrency affiliates, facilitating efficient arbitrage. Allowing physical creation and Redemptions are critical to improving transaction efficiency and secondary market pricing for all participants.”