In a exceptional growth for the crypto ecosystem, the US Securities and Change Fee (SEC) has acknowledged Bitwise’s utility for a spot Bitcoin Change Traded Fund (ETF) product.
JUST IN – The SEC formally acknowledges Bitwise’s spot #Bitcoin ETF utility 👀 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 utility is essential for the cryptocurrency business 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 considerations about market manipulation and custody of the underlying belongings. The present recognition implies that the regulator considers the Bitwise spot Bitcoin ETF utility to be sufficiently full and worthy of additional consideration. Nonetheless, it is very important word that the SEC has not but accredited the ETF.
The regulator will now provoke a proper evaluate course of, which features a thorough examination of the proposal and a possibility for public remark. If the Bitwise spot Bitcoin ETF is accredited, it’s going to give particular person traders a extra accessible and safe different to spend money on Bitcoin.
Presently, people who need publicity to Bitcoin should navigate the advanced world of crypto exchanges or go for different funding autos resembling Bitcoin Trusts or futures contracts.
Bitwise Renewed Dedication for Bitcoin ETF
Bitwise re-filed its utility 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 satisfy regulatory necessities.
On the time of its initial filing, 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 considerations concerning the Bitcoin ecosystem.
These considerations have primarily revolved round points resembling market manipulation, custody of underlying belongings, investor safety, and general market integrity.
Nonetheless, Bitwise expressed confidence within the SEC’s potential to approve its utility 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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