In a exceptional growth for the crypto ecosystem, america Securities and Change Fee (SEC) has acknowledged Bitwise’s software for a spot Bitcoin Change Traded Fund (ETF) product.
JUST IN – The SEC formally acknowledges Bitwise’s spot #Bitcoin ETF software 👀 pic.twitter.com/XXWOybjYxb
— Bitcoin Journal (@BitcoinMagazine) July 13, 2023
Significance of SEC’s Acknowledgement
The SEC’s acknowledgment of the Bitwise spot Bitcoin ETF software is essential for the cryptocurrency trade as a result of it strikes the potential of a regulated Bitcoin ETF nearer to actuality.
Over the previous few years, a number of Bitcoin ETF proposals have been submitted to the markets regulator, however they’ve confronted repeated rejections as a result of issues about market manipulation and custody of the underlying property. The present recognition implies that the regulator considers the Bitwise spot Bitcoin ETF software to be sufficiently full and worthy of additional consideration. Nonetheless, you will need to word that the SEC has not but permitted the ETF.
The regulator will now provoke a proper evaluate course of, which features a thorough examination of the proposal and a chance for public remark. If the Bitwise spot Bitcoin ETF is permitted, it is going to give particular person buyers a extra accessible and safe various to spend money on Bitcoin.
At the moment, people who need publicity to Bitcoin should navigate the complicated world of crypto exchanges or go for various funding automobiles reminiscent of Bitcoin Trusts or futures contracts.
Bitwise Renewed Dedication for Bitcoin ETF
Bitwise re-filed its software for spot Bitcoin ETF in June following a bunch of functions fueled by famend asset supervisor BlackRock. This submitting signifies Bitwise’s dedication to pursuing the ETF approval course of and signifies its ongoing efforts to fulfill regulatory necessities.
On the time of its preliminary submitting, Bitwise’s Chief Funding Officer, Matthew Hougan highlighted that the SEC’s rejection of earlier Bitcoin ETF functions by the SEC was accompanied by detailed memos outlining the regulator’s issues concerning the Bitcoin ecosystem.
These issues have primarily revolved round points reminiscent of market manipulation, custody of underlying property, investor safety, and total market integrity.
Nonetheless, Bitwise expressed confidence within the SEC’s potential to approve its software primarily based on the truth that the Chicago Mercantile Change (CME) now meets the SEC’s necessities and gives a clear and controlled platform for Bitcoin futures buying and selling.
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