SEC Turns Down Bitwise Bitcoin ETF Trust Despite Compelling Case

Bitcoin ETF

Bitwise Asset Management, a key player in the global crypto space that is revered as the leading provider of beta funds and index for the crypto ecosystem, has been in the race for a Bitcoin ETF since January 2019.

Like most top shots looking for own their Bitcoin ETF, the firm filed with the United States Securities and Exchange Commission (SEC) for the right to a Bitcoin ETF. Filed on January 9, 2019, the SEC passed its final judgment on Bitwise ETF application earlier in the week, turning it down for not meeting up with the requirements.

Since the date of filling Bitwise has reportedly been to a ton of meetings with both SEC staff and the offices of SEC Commissioners. The firm also revealed that it submitted a 561 page report, clearly showing evidence to support its research, including a complete run on the separation of real and fake volume in the crypto market, an examination of the rapid growth & importance of the CME Bitcoin futures market, and an in depth analysis of the ‘Winklevoss Order’ (why the SEC’s disapproval of the Winklevoss Bitcoin Trust isn’t connected to Bitwise’s Bitcoin ETF proposal).

Sadly, all of these efforts could not measure up to the requirements stated by the SEC.

Upon the release of the SEC’s 112-page “Order Disapproving a Proposed Rule Change, as Modified by Amendment No. 1, Relating to the Listing and Trading of Shares of the Bitwise Bitcoin ETF Trust Under NYSE Arca Rule 8.201-E,” the firm released a detailed explanation of what went wrong and asserted that it is taking this ‘red light’ in its stride, and fighting relentlessly until it eventually gets the blessings of the SEC.

Bitwise’s Global Head of Research, Matt Hougan, stated:

“We deeply appreciate the SEC’s careful review. The detailed feedback they have provided in the Order provides critical context and a clear pathway for ETF applicants to continue moving forward on efforts to list a bitcoin ETF. We look forward to continuing to productively engage with the SEC to resolve their remaining concerns, and intend to re-file as soon as appropriate.”

Bitwise stressed further in the press release that “while we were not able to satisfy the SEC’s concerns inside the statutory 240-day review window afforded these filings, and while they have identified the need for additional data and context to interpret our key findings, we are pleased with the progress that the industry has made and believe that, with additional research and continued progress in the broader ecosystem, the remaining concerns and challenges raised in this order will ultimately be satisfied.”

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