Speaking on this new delay, Blockchain Association official Jake Chervinsky said that the SEC has a new deadline on August 14.
Once again, the Security and Exchange Commission (SEC) left the fate of Bitwise‘s proposed Bitcoin ETF hanging, asking them to address the concerns raised on the Bitcoin ETF application.
The SEC’s decision to approve Bitwise Bitcoin ETF has been hanging in the air as Bitwise is asked to provide comments on the concerns leveled around its proposed ETF.
Bitwise investment platform hopes to get listed on the ICE’s NYSE Arca exchange, however, the delay by SEC seems to be making this dream farfetched.
According to the filing made by the foremost regulator, it has questions on how the crypto ETF will fight fraud and manipulations, the expected trading volume, and other salient issues that could affect its operations.
Bitwise would have the next 21 days to respond to SEC’s demand for comments.
Experts in the field believed that these concerns are a spin-off of SEC’s many denials of other proposed Bitcoin ETPs. Within the last two months, the SEC has rejected ETF applications from interested firms like WisdomTree, Krypton, SkyBridge, and Fidelity.
However, despite the hardline approach the commission currently holds over the approval of Bitcoin spot ETF, it is widely believed that it would someday cave into the mounting pressure from the wider crypto community.
This is not the first time the government agency will be suspending or rejecting proposed plans for Bitcoin spot ETFs. Last December, it postponed its decision on Bitwise and Grayscale applications to a later date.
Speaking on this new delay, Blockchain Association official Jake Chervinsky said that the SEC has a new deadline on August 14. However, if it chooses to postpone again, then its final deadline will be October 13.
SEC Says No to Bitcoin Spot ETF
The SEC has repeatedly reiterated its preference for a Bitcoin futures ETF. The commission, before the tenure of Gary Gensler, didn’t approve a single exchange-traded fund application before it throughout the period.
However, under this new chairman, it has approved a number of futures ETF like Valkyrie, ProShares, and others.
The commission chairman had spoken about the need to protect investors from fraud and manipulation as why it was against the approval of a Bitcoin spot ETF.
It should be noted that the interest in an ETF is high in the United States as ProShares ETF registered $1 billion in assets under management within two days of its launch.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
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