Bitwise withdraws application to SEC, bitcoin ETF approval is hopeless?

According to foreign media news today, crypto asset management company Bitwise has withdrawn a proposal to the US Securities and Exchange Commission (SEC) for the purpose of listing physical backed Bitcoin investment vehicles on the New York Stock Exchange Arca.

Source: Pixabay

This proposed rule change will allow Bitwise to list and trade the Bitwise Bitcoin ETF Trust, which will be based on an index that pulls data from large cryptocurrency exchanges.

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According to an official document issued by the SEC today, the Bitwise Bitcoin ETF Trust requested its withdrawal of its registration statement on Form S-1, which was originally filed with the Commission on January 10, 2019.

The SEC filing further states:

"At present, the registrant has decided not to register and sell the securities covered by the registration statement. The registrant considers that this withdrawal request is in the public interest and investor protection under section 477 (a) of the Act, and in accordance with the Act c) indicates no release. "

The company previously applied to the U.S. top regulator for a regulated ETF that can track its Bitwise Bitcoin Total Return Index. At the time, Bitwise explained that the index was designed to capture the total return that investors can get from this world's largest crypto asset, including "any meaningful hard fork."

Bitwise said that its proposed ETF differs from similar proposals previously submitted in that it will guarantee 100% cold storage holdings through institutions, regulated third-party custodians, and that the index draws prices from a large number of cryptocurrency exchanges .

Bitwise fails to overturn SEC rejection of Bitcoin ETF

If approved, the New York exchange Arca, owned and operated by Intercontinental Exchange (ICE), will plan to host this proposed listing, and Bitwise Index Services will produce and manage the Bitcoin ETF.

Bitwise is the second company to apply for bitcoin exchange-traded products with physical support. The first is the blockchain technology company SolidX, which has filed documents with the SEC in partnership with money management company VanEck.

After the SEC first rejected its ETF proposal in October 2019, Bitwise sought to address the agency's concerns about market manipulation, which is considered to be one of the reasons regulators have rejected its Bitcoin Exchange Traded Fund (Bitcoin ETF). Although the Securities and Exchange Commission (SEC) said in November that it was reviewing the refusal, Bitwise's proposal did not seem to meet the requirements of regulators.

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