Connect with us

Cryptocurrency

Bitwise Withdraws Long-Standing Bitcoin ETF Application

BlockClutch Team

Published

on

A Jan. 14 form together with the United States Securities and Exchange Commission (SEC) affirms that Bitwise Asset Management asked the withdrawal of its program to get a Bitcoin (BTC) Exchange Traded Fund (ETF). This is the 2nd significant ETF withdrawal in recent months after similar activities by VanEck.

Bitwise applied to get ETF enrollment in January 2019. In March of the exact same year, it’d published the Bitwise Report on trade quantity, claiming which 95percent of trading volume is fabricated. The finding was utilized by the organization as a debate for the SEC to take the ETF. By disregarding nearly all the foreign exchange quantity, the company claimed that price formation for BTC happened mostly on regulated exchanges.

The justification didn’t convince the commission, which rejected the proposition from October 2019. 1 month later, but the regulator decided to review its own decision.

It’s unclear why Bitwise made a decision to draw the ETF at this time. Bitwise agents didn’t immediately respond to a Cointelegraph remark request. The narrative will be upgraded once more info is available.

A high-profile proposal by VanEck followed a similar route as the company retracted its program in September 2019.

Roadblocks into a ETF

An ETF is a stock-like fund monitoring a specific asset or indicator of resources. Its stocks can be publicly traded throughout the day and usually closely stick to the underlying asset’s cost. A Bitcoin ETF would consequently enable retail and institutional investors to get immediate exposure to the money — while trading inside the boundaries of controlled traditional trades.

You will find many historical attempts at enrolling a Bitcoin ETF, however they were constantly refused by the SEC. Their principal issues remain those of divorce along with the possibility of market exploitation. Even though SEC Chairman Jay Clayton mentioned in a September 2019 interview that progress has been made, he commented that”more work has to be carried out.”

The ruler is set to rule another ETF proposal by Wilshire Phoenix from February 2020.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Copyright © 2019 BlockClutch | All Content Rights Reserved