No SEC decision on Bitwise Bitcoin ETF yet

15 May, 2019 | AtoZ Markets – No SEC decision on Bitwise Bitcoin ETF yet, as the U.S Securities and Exchange Commission (SEC) has delayed its decision on the bitcoin (BTC) exchange traded fund (ETF) of Bitwise Asset Management, as the regulator published on May 14th.

The commission also sought public comments from interested parties to “provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”

Last February, Bitwise filed for an ETF for the first time, under the condition that the SEC would reach a decision in 45 days.

This is the second time the SEC delays its decision on the Bitwise ETF application, after it first did last March.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,”, read the SEC statement last March.

Bitwise’s bitcoin ETF differs from previous proposals

In its offer today, Bitwise’s bitcoin ETF differs from other previously proposed bitcoin ETFs as it draws prices from a variety of cryptocurrency exchanges, aiming at representing the market in a batter way.

As per the original filing, Bitwise specifically says that its bitcoin ETF needs “regulated third-party custodians to hold its physical bitcoin.”

The filing also read: “Having a regulated bank or trust company hold physical assets of a fund has been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with Bitcoin,”

The public comment period is open for three weeks after the most recent modifications to the Bitwise ETF application are published in the Federal Register, followed by two weeks for responses.

Bloomberg reported at the time that the SEC had concerns over ETFs, since the number of assets in these funds grew since 2014, and more than 10% of new ETFs in 2018 focused on a specific topic.

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