The SEC has now legally accepted the spot Bitcoin Exchange Traded Fund (ETF) product filed by Bitwise.
The United States Securities and Exchange Commission (SEC) has accepted Bitwise’s application for a spot Bitcoin Exchange Traded Fund (ETF) product, a significant move for the cryptocurrency industry.
The cryptocurrency sector needs the SEC’s approval of the Bitwise spot Bitcoin ETF proposal because it brings the possibility of a regulated Bitcoin ETF closer to reality.
Several proposals for Bitcoin ETFs have been made to the market regulator over the past few years. However, they have been repeatedly rejected due to worries about market manipulation and custody of the underlying assets.
The regulator appears to believe that the Bitwise spot Bitcoin ETF application is sufficiently complete and merits further review based on the present recognition. It’s crucial to remember that the SEC still needs to approve the ETF.
Now that the proposal has been thoroughly reviewed, the regulator will start a formal review procedure that will also give the public a chance to react.
The Bitwise spot Bitcoin ETF will provide ordinary investors a more convenient and secure way to invest in bitcoin if approved. People who want exposure to Bitcoin have to either wade through the confusing world of cryptocurrency exchanges or choose alternative financial instruments like Bitcoin Trusts or futures contracts.
Following a flurry of applications encouraged by renowned asset manager BlackRock, Bitwise re-filed their application for a spot Bitcoin ETF in June. With this file, Bitwise demonstrates its dedication to the ETF approval procedure and its continued attempts to adhere to legal criteria.
When the application was first made, Bitwise’s chief investment officer, Matthew Hougan, emphasized that the SEC had previously rejected applications for Bitcoin ETFs and that rejections had been backed by thorough documents describing the regulator’s worries about the Bitcoin ecosystem.
Market manipulation, control of underlying assets, investor protection, and general market integrity have been the main topics of these worries. The Chicago Mercantile Exchange (CME), which already complies with SEC criteria and offers a transparent and regulated platform for trading Bitcoin futures, led Bitwise to express confidence in the possibility of the SEC approving its application.
