Bitwise Bitcoin Spot ETF Proposal Awaits SEC’s Approval or Denial

It is not new for the U.S. regulator to decide on whether to approve or disapprove Bitcoin spot ETFs, only to spurn it eventually.

SEC Yet Again Delays Decision To Approve Bitwise Spot BTC ETF

The Securities and Exchange Commission (SEC) said Tuesday that it had not reached any conclusion on an NYSE Arca application to list Bitwise’s spot Bitcoin exchange-traded fund (ETF).

Bitwise Asset Management, along with NYSE Arca submitted their proposed rule change in October 2021. The regulator, in December, postponed its decision on the proposal to February 1, 2022, only to further defer.

The watchdog has asked Bitwise to come up with solutions to prevent share manipulation, fraud, and other issues in its proposed ETF that tracks the underlying digital asset.

The delay follows a string of similar rebuffs from the SEC to approve Bitcoin ETFs from several issuers including Fidelity, SkyBridge, and VanEck, to name a few.

Interestingly, futures-backed products like ProShares Bitcoin Strategy ETF or VanEck Bitcoin Strategy ETF were given the green signal.

SEC Concerned About Share Manipulation and Liquidity

In addition, the regulator has also sought public comments on aspects of the fund’s application.

It sought information on expected trading volumes of the shares, protection against susceptible fraud and manipulation, liquidity and transparency of the bitcoin markets, among others.

“The Commission requests that interested persons 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,” it said.

Notably, Bitcoin’s price was still below the crucial $40,000 value as the asset is trying to catch up with its losses in recent months. Bitcoin hit a six-month low of around $33,500 on Jan. 24 and is trading at $38,400 at press time.