The United States Securities and Exchange Commission (SEC) held a meeting with Fidelity Investments to discuss Fidelity's Wise Origin Bitcoin Trust application. The meeting, which included representatives from Cboe BZX Exchange, aimed to gain further clarity on the operational functionality of the proposed spot Bitcoin exchange-traded fund (ETF).

During the meeting, which took place on December 7, two Cboe BZX Exchange representatives, six SEC personnel, and nine Fidelity personnel reviewed diagrams and presentations related to the Wise Origin Bitcoin Trust. The discussions centered around Cboe BZX's proposed rule change to list and trade shares of the ETF.

The meeting followed Fidelity's submission of the spot Bitcoin ETF application on June 19. However, this is not the first time the SEC has considered Fidelity's application, with a previous rejection occurring in 2022.

The SEC has been engaging with various spot Bitcoin ETF applicants to discuss technical details related to U.S. exchanges listing shares of such ETFs. In November, the SEC met separately with representatives from BlackRock and Grayscale to address their applications.

There has been widespread speculation as to when a spot Bitcoin ETF will receive approval. Hashdex, one of the 13 asset managers applying for a spot Bitcoin ETF, expects the first U.S. spot Bitcoin ETF to be approved by the second quarter of 2024. According to Hashdex's U.S. and Europe head of product, Dramane Meite, the narrative around the product has shifted from "if" to "when" in 2023.

Bloomberg ETF analysts Eric Balchunas and James Seyffart are optimistic that January 10 will signify the approval of all spot Bitcoin ETFs. This is in line with the SEC's deadline to either approve or deny ARK Invest's application.

The outcome of the meeting between Fidelity and the SEC will have implications for the future of spot Bitcoin ETFs in the United States. Investors and industry participants eagerly await the regulatory decision, as the approval of a spot Bitcoin ETF is seen as a crucial step toward mainstream adoption and increased institutional interest in cryptocurrencies.