Bitwise originally filed for an ETF enrollment in January last year. Some months after its filing, the firm published the Bitwise Report on exchange volume, which claimed that 95% of its total trading volume was falsified.
This discovery was used by the enterprise as a debating point for the SEC to approve the ETF filing. By dismissing the bulk of the exchange volume, the enterprise sustained that price formation for Bitcoin happened largely on regulated exchanges.
However, the SEC was not convinced by this debate and turned down the petition in October 2019. Some weeks later, however, the agency settled on re-evaluating its vindication.
This has led to confusion as to why Bitwise is now just deciding to relinquish its petition. The executive of the enterprise has refused to give any statement on the development.
This is almost the same pattern that ensued before VanEck withdrew its ETF petition in September 2019.
Challenges Facing Bitcoin ETFs
An ETF is much like a stock that tracks certain assets or indexes of an asset. Shares of ETFs mimic the price movement of the underlying asset and can be traded normally on exchanges.
A Bitcoin ETF on that account would provide institutional and retail investors likewise with the means to have unrestrained access to the cryptocurrency while obeying regulations set by exchanges.
There have been numerous undertakings in the past to get the SEC to approve a Bitcoin ETF. The agency’s main concern is still on the possibility of manipulation by bad actors and difficulty in regulation.
The Chair of the SEC, Jay Clayton, stated in a conference in September last year that the agency was progressing and that there was still a lot of work to be done.
The agency has another ruling on an ETF petition by Wilshire Phoenix set for February 2020.
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.