THELOGICALINDIAN - The US Securities and Exchange Commission SEC declared bygone that it hadnt accustomed the Bitcoin exchangetraded armamentarium ETF proposed by Bitwise Asset Management
SEC’s Decision on Bitcoin ETF in Line with Expectations
While the SEC alone Bitwise’s BTC ETF, the regulator didn’t apperception to absolution a super-detailed explanation that counts 112 pages.
At the alpha of the year, NYSE Arca – the top US barter for trading ETFs – filed an appliance with the SEC to account shares of the Bitwise Bitcoin ETF Trust. Earlier this week, we reported that Matt Hougan, Bitwise’s arch of research, was assured that the SEC would accept the listing.
However, the blow of the bazaar hasn’t been that optimistic. Perhaps this is why the Bitcoin amount wasn’t agitated bygone on the SEC order. On the contrary, the oldest bread out there surged 5% as the Fed appear a quantitative easing-like admeasurement to addition the calm economy.
The SEC fatigued that its disapproval was not based on the appraisal of Bitcoin or blockchain – the technology basal it. Instead, the agency alone the angle because NYSE Arca hadn’t met its responsibilities beneath the Exchange Act and the Commission’s Rules of Practice to prove that its artefact was in band with the requirements of Exchange Act Section 6(b)(5). Specifically, NYSE Arca had to ensure that its rules are “designed to anticipate counterfeit and artful acts and practices.”
Nevertheless, the SEC did absolutely accurate its apropos over the Bitcoin market, advertence several aspects that the regulator finds problematic. Ironically, the SEC referred to a Bitwise address according to which 95% of the Bitcoin trading aggregate is fake, citation it as an altercation that the bazaar is still at an arising phase.
Bitwise’s Reaction
Soon afterwards the SEC fabricated its accommodation public, Bitwise released an official reaction, advertence that it “appreciates the SEC Staff’s accurate assay and advancing assay accompanying to bitcoin ETF applications.”
Hougan agrees that the approval of atypical EFTs accompanying to new asset classes has appropriate abounding years of authoritative engagement.
Interestingly, Bitwise doesn’t assume to accord up and intends to re-file addition application:
Do you anticipate Bitwise will accomplish to access a nod from the SEC abutting year? Share your expectations in the comments section!
Images via Shutterstock, Twitter: @skew_markets
