The ETF, which would track the price of bitcoin and put Fidelity Investments at the forefront of an effort to popularize cryptocurrency investments, requires the SEC's green light, but the commission frequently rejects Bitcoin ETF applications.
Fidelity representatives, including Tom Jessop, president of the company's digital assets arm, met with SEC staff on Sept. 8, according to a SEC memo first reported by Bloomberg.
Fidelity gave a presentation at the meeting laying out reasons for the SEC to approve "a bitcoin ETP now."
Reasoning in the presentation included "investor benefits of exchange-regulated ETP providing direct exposure to bitcoin"; "bitcoin market maturity"; "product innovation"; and Fidelity Investment's Wise Origin Bitcoin Trust, which the company said is "designed to offer investors direct exposure to bitcoin in a familiar vehicle."
The memo noted that regulators have approved bitcoin exchange-traded products (ETPs) in other countries, including Canada, Sweden, Switzerland and Germany.
"We believe bitcoin futures-based products are not a necessary interim step before a bitcoin ETP; firms should be able to meet investor demand for direct exposure to bitcoin through ‘33 Act bitcoin ETPs because the bitcoin market has matured and can support them," Fidelity's presentation reads.
The Securities Act of 1933 enacted after the 1929 stock market crash requires investors to receive financial information concerning public security offerings and bans any type of fraud or misrepresentation in security sales.
Fidelity initially announced plans to launch the Wise Origin Bitcoin Trust in March.