US SEC to Review Rejected Bitwise Bitcoin ETF Proposal

The US Securities and Exchange Commission (SEC) review its judgment to reject the Bitcoin ETF proposal from Bitwise Asset Management and NYSE Arca.

19 November 2019, AtoZMarkets –  Earlier last month, the US Securities and Exchange Commission (SEC) rejected a Bitcoin Exchange Traded Fund (ETF) proposal by Bitwise Asset Management. The SEC then released a 112-page document explaining the reasons for its disapproval. The document also emphasized that the fund would pave the way for manipulative acts and practices. However, the SEC has now delighted many members of the crypto-community after announcing that it will consider rejected applications.

SEC to Review Bitwise Bitcoin ETF

The SEC also revealed a deadline of 18 December 2019 for the same thing and said,

Therefore, it is ordered, under Board Practice Rule 431, by 18 December 2019. Any person or other party may file a statement in support of or in opposition to the action taken under delegated power.

Besides, the rejection order will continue in effect until the SEC review process is completed. The SEC announcement also clarified that NYSE Arca and Bitwise, companies that had previously applied for listing on a Bitcoin Exchange Traded Fund (ETF), had their applications rejected. They failed to show that the crypto-investment market was clear from scam and manipulation. However, the constant delay in ETF decisions has given businesses hope. Besides, Jay Clayton's commentary on the Bitcoin ETFs. Progress was being made. It also seemed to favor the application of Bitwise.

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Despite the SEC's rejection, Bitwise is working "feverishly" to get SEC approval, said Matt Hougan, Global Head of Research at Bitwise. Initially, when the first refusals arrived, several influential people had said that the SEC was not ready for a Bitcoin ETF. Moreover, shortly after the SEC denied Bitwise's application, another applicant, VanEck / SolidX, withdrew its appeal from the SEC, although the agency has set a date for a decision on it.

Read More: How to Choose a Crypto Wallet

Realistic Timeline For The First Crypto ETF Approval

Charles Lu is the CEO of the Findora confidential registry protocol. He later said of a sensible timeline for the first crypto ETF approval. That he is uncertain that the process will be quick:

The sponsor will have to prove that there is real price discovery rather than market manipulation to get SEC approval. Lu did not believe this would happen soon. He adds: The SEC will require surveillance-sharing agreements with major cryptocurrency exchanges - a requirement that few foreign-domiciled exchanges accept.

Industry professionals seem to be somewhat optimistic. However, they believe that at some point, the cryptography industry will receive its coveted award. But it is not right away.

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