Bitwise Asset Management, on June 16, submitted a document requesting a change in regulation to allow for its upcoming Bitcoin spot ETF.
Previously, the U.S. Securities and Exchange Commission (SEC) had denied Bitwise’s application for a Bitcoin spot ETF in June 2022. The SEC cited reasons such as the lack of a sufficient surveillance-sharing system, inadequate protection against market manipulation, and the inability to prove the significant size of the relevant market.
However, the SEC had mentioned that future applications could meet these requirements, and Bitwise tried to address these concerns in its latest filing. Bitwise also noted in the filing that the SEC should decide on its proposed rule change within 45 to 90 days, either accepting or rejecting it.
The New York Stock Exchange (NYSE) published the application, and the determination of the timeline for the SEC to review it remains uncertain.
Bitwise’s current registration follows the news of BlackRock, a major asset management company, filing an ETF for Bitcoin on June 15. This filing has generated optimism as the SEC has rarely rejected BlackRock’s ETF applications.
The SEC has denied numerous applications from the financial and cryptocurrency sectors for a Bitcoin spot ETF, which is yet to be approved. In March, Bitwise CEO Matthew Hougan acknowledged the challenges, stating that a viable path for businesses to create such a fund currently needs to be a viable path. However, he expects the U.S. to authorize a spot Bitcoin ETF eventually.
