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Bitcoin ETF

SEC to Decide Later on Three Bitcoin ETF Proposals

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Bitcoin ETF

Bitcoin ETF

Ever since Bitcoin had that incredible rally back in 2017, there has been a lot of talk among big-ticket investors to find a way to bring the cryptocurrency into the world of mainstream investing. It was around that time that the idea of Bitcoin-based exchange-traded funds (ETFs) was first floated. Ultimately, the Securities and Exchange Commission is responsible for allowing Bitcoin ETFs in the markets and on Monday, the agency was supposed to deliver its decision on three Bitcoin ETFs. However, to the disappointment of most in the crypto sphere, the SEC delayed the decision.

Key Details About Bitcoin ETF

Although this is something that had been in discussion among investment circles for some time, the concrete proposals were made to the SEC only earlier this year. Asset managers working with Wilshire Phoenix, Bitwise Asset Management, and VanEck/SolidX had proposed these ETFs. The three entities submitted their filings in February and then again June and from then on the SEC had a 240-day period within which it had to either approve or reject the creation of Bitcoin-based ETFs promoted by these three firms.

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Although it is true that the whole thing has been delayed, for now, it needs to be remembered that the three ETFs have not yet been killed. It is merely a delay, and in fact, the final verdict with regards to the proposals from Bitwise Asset Management and VanEck/SolidX is expected by October 13 and October 15 respectively. The ETF decision for Wilshire Phoenix is going to be delivered on September 29.

These are highly important dates in the evolution of Bitcoin and the cryptocurrency formally coming into the mainstream investing ecosystem. The ultimate aim of many Bitcoin investors is to see the token attracting institutional investment, and if that happens, then the price of Bitcoin could eventually reach much higher levels.

Featured image: DepositPhotos © EdZbarzhyvetsky

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Bitwise Withdraws Bitcoin ETF Application with SEC

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Bitwise

Bitwise

Bitwise Asset Management has withdrawn its longstanding Bitcoin ETF application with the SEC, after the proposal was rejected by the commission in October.

Bitwise first filed an application with the US Securities and Exchanges Commission for what would be the first-ever Bitcoin ETF in January of last year, after several other companies had failed with similar proposals. Bitwise’s application was seen as the greatest hope for a Bitcoin ETF given key differentiations between its proposal and ones that had gone before it. The index was intended to take Bitcoin’s value from a variety of crypto exchanges and, therefore, offer a more accurate and precise market value for the coin.

Another important difference was Bitwise’s plan to regulate the ETF by having a trusted third-party bank or company hold its physical Bitcoin. In March, the company released the Bitwise Report on exchange volume, claiming that 95% of Bitcoin trading volume is fabricated. Bitwise used this as an argument for the SEC to accept its ETF proposal. By disregarding the majority of the exchange volume, the firm maintained that price formation for BTC occurred mostly on regulated exchanges, according to Cointelegraph.

However, the proposal has now been rejected after the SEC said it did not meet the necessary legal requirements to prevent market manipulation or other illicit activities. “This is the next step towards our long-term goal of bringing a bitcoin ETF to market, and we plan to refile our application at an appropriate time. We are currently working hard on answering the questions that the SEC raised in its 112-page response to our initial filing,” said Matthew Hougan, Bitwise’s global head of research.

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The SEC has rejected at least a dozen Bitcoin ETF proposals, with another application from Wilshire Phoenix, which will combine Bitcoin and US Treasury bonds, expected to be ruled on by February 26.

Featured Image: DepositPhotos © Melpomene

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