U.S. SEC Delays Its Decision on Bitwise and VanEck Bitcoin ETF Application to May

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U.S. SEC Delays Its Decision on Bitwise and VanEck Bitcoin ETF Application to May
The U.S. securities regulator continues to remain firm on its decision of not approving the Bitcoin ETF anytime soon. Next window for ETF decision now in May 2019.
U.S. SEC Delays Its Decision on Bitwise and VanEck Bitcoin ETF Application to May

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Source: CoinSpeaker

Bitwise Bitcoin ETF Decision set for May, BTC Prices Up 2.3 Percent

Bitcoin prices stable but bullish
Bitwise Bitcoin ETF application decision date put off to mid-May

It will be until mid-May when the US SEC decides on Bitwise Bitcoin ETF. Like the SolidX and VanEck application, this ETF is backed by Bitcoins secured by a third party custodian. Meanwhile, Bitcoin (BTC) prices are stable inside Mar-29 high-low as bulls build momentum towards $4,500.
Bitcoin Price Analysis
Fundamentals
For the second time, the US SEC is putting off their decision on whether Bitwise Bitcoin ETF application meets their requirement and ready for investors. By doing so, the asset management firm joins a long list of applicants including VanEck, SolidX, and CBoE a joint application which the community says stand a change of getting the green lights from the US regulator.
Submitting their file in January, the San Francisco firm plans to roll out a physically backed ETF and after 45 days, the SEC was supposed to make their decision tomorrow. However, the regulator says their decision will be made public in mid-May. Bitwise Bitcoin ETF will track the performance of the world’s largest digital asset from the Bitwise Bitcoin Total Return Index. The index draws prices from trusted cryptocurrency exchanges.
Differentiating itself, their Bitcoins will be stored in a cold wallet by an institutional grade third-party custodian for security and accountability purposes. Should the fund check all the requirements then the NYSE Arca shall list the ETF will Bitwise Index Services will be tasked with producing and servicing the world’s first Bitcoin ETF approved by the strict SEC.
Candlestick Arrangement

After weeks of lower lows, this week’s performance is encouraging. Not only will it close the week on a high, adding 2.3 percent but in line with our last BTC/USD trade plan, Bitcoin prices will for the first time closed above a five-month liquidation trend line.
In a typical bullish breakout, such will encourage participation now that prices are stable above $4,000. Besides, bulls of Mar 5 are now live. This is because of  Mar 27-29 upswings thrusting prices above Mar 16. As a result, our short-term longs are valid with targets at $4,500.
Technical Indicators
Despite these encouraging gains, Feb 24 losses are conspicuous. Once there is a high volume break above $4,500 reversing this slide, risk-averse can trade can begin ramping up. Accompanying this break above should be high volumes exceeding recent averages of 6.5k, Mar 29—8k and preferably Feb 18—37k.
Chart courtesy of Trading View
The post Bitwise Bitcoin ETF Decision set for May, BTC Prices Up 2.3 Percent appeared first on NewsBTC.
Source: New feedNewsBTC.com

Top Trending Crypto News of the Week: The Bitwise Report, Bithumb, and Bitcoin ETF Among Major Newsmakers

Key highlights

The bitwise report concludes 95% of the reported volumes in Bitcoin are fake
Bithumb hacked for millions of EOS and XRP
Coindelta exchange succumbs to Indian Government’s lack of crypto regulations
SEC delays Bitwise’s and NYSE Arca Bitcoin ETF Application
Indian Apex court differs Crypto Case hearing on request of the Government

 

 
The Bitwise report concludes 95% of the reported volumes in Bitcoin are fake
This week a Bitwise report literally shook the crypto industry. The report found that 95% of the trading volume in Bitcoin was fake, ginned up through techniques like “wash trading” where a person buys and sells an asset at the same time. The report analyzed 81 exchanges and concluded that the fake traffic was being generated by 71 of them, in order to lure in lucrative “initial coin offerings” and the associated fees, which can run to millions of (fiat) dollars.
Bithumb hacked for millions of EOS and XRP
The world woke to a Saturday with the news of another hack and this time it was Bithumb. The leading exchange faced its second  hack in less than a year and this time the hackers managed to steal 3 million EOS coins and 20 million XRP. The news broke late on Saturday morning (UST) as the crypto entrepreneur and analyst Dovey Wan relayed reports apparently coming from a security firm who were auditing for Bithumb.
Coindelta exchange succumbs to Indian Government’s lack of crypto regulations
Well, the Indian Policy paralysis towards cryptocurrency has taken another exchange down and this time its CoinDelta. It was reported by the founder using the medium channel that the exchange was shutting down operations on 30 March at 2 pm IST. The exchange’s statement on Medium read “It has been really difficult for us to operate Coindelta exchange for the last 6 months. The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services.”
SEC delays Bitwise’s and NYSE Arca Bitcoin ETF Application
The approval for two Bitcoin ETFs has yet again been delayed by the Securities Exchange Commission (SEC) in the US. On 29th March 2019, SEC released a press release of its letter to the Cboe BZX Exchange, Inc., and NYSE Arca and Bitwise citing the designation of a “Longer Period” of time for the pending decision. The notice read “The Commission finds it appropriate to designate a longer period within which to take such action on the proposed rule so that it has sufficient time… Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates May 16, 2019, as the date by which the Commission either approves or disapproves.”
 
Indian Apex court differs Crypto Case hearing on request of the Government
The final hearing of the crypto case at the Indian apex court has now been delayed to July on request of the government. According to a local analyst, this step has been taken as India’s general election are approaching and the voting due to take place in seven phases between April 11 and May 19. The results will be announced on May 23. As per law During election time in India, ‘aachar sanhita’ or code of conduct applies. Thereby no new law can be passed which means that the government is not expected to officially announce any regulation regarding cryptos or others.
The post Top Trending Crypto News of the Week: The Bitwise Report, Bithumb, and Bitcoin ETF Among Major Newsmakers appeared first on Coingape.
Source: CoinGape

Limited Supply Principle stifling cryptocurrency regulatory approval, says CME Chairman Terry Duffy

Terry Duffy, the Chairman of the Chicago Mercantile Exchange [CME], is in the news after he cast doubts on the prospects of a publicly traded Bitcoin asset. Cryptocurrencies backed by real assets like fiat currency would be the only form of virtual currency that would fit the bill under regulatory oversight, he stated.
During a recent interview at FIA’s International Futures Industry conference, Duffy voiced his support for stablecoins backed by real dollars.
Stablecoins like Tether [USDT] are backed one-for-one by fiat and hence, are the ‘best of both worlds.’ They allow users to delve into the cryptospace, enjoying ubiquity and universality of payments while still being tethered to the centralized financial world.
He stated,
“How do we figure out how to get the cryptos in there, but just have them backed up by fiat, and let that work as it is.”
Cryptocurrencies are often seen as just another investment vehicle, where the value of the underlying coin is more important than its use cases. Duffy stressed that the adoption and use of decentralized currency should be of greater concern, than the actual rise and fall of the market.
The CME Chairman added,
“But the argument has gone only to the price of say bitcoin or any other cryptocurrency. No one is talking about, ‘How do I use this asset?”
Publicly traded Bitcoin [BTC] assets, like the much-touted Bitcoin Exchange Traded Fund [ETF] have been in a regulatory shackle for months now. Despite two proposals, the Securities and Exchange Commission [SEC] is yet to give its approval, with many claiming that doing so is hindering the mainstream growth of decentralized currency.
Duffy added that the main reason for the backlash against the ETF was the underlying cryptocurrency’s principle of limited supply. The protocol placed into Bitcoin is that there can only be 21 million BTC in supply, which the market is expected to reach in 2140 when the mining rewards dwindled to 0.
Cryptocurrency proponents often cite this principle as one that balances the market and reduces inflationary pressure. Sovereign currency can be created by the government at any time, which is a fundamental point of opposition within the crypto-community.
In light of this debate, Duffy stated that governments cannot operate unless “they run on a deficit.”
Regulation is the single biggest hurdle for cryptocurrency adoption, something Duffy acknowledged. The cryptocurrency community needs to get the nod from financial watchdogs if they want to break into the forefront of the financial realm, he believes.
Duffy concluded by highlighting the skepticism that regulators have when approaching the topic of cryptocurrencies,
“I do believe that the regulators right now are a little careful about just rubber stamping anything as it relates to crypto.”
The CME group, together with its cross-city rivals, the Chicago Board of Options Exchange [CBOE], set the cryptocurrency market alight by launching Bitcoin Futures in 2017. However, 15 months after the launch, the CBOE decided to delist the XBT contracts for March 2019, allowing the CME group to take over the BTC Futures market.
The post Limited Supply Principle stifling cryptocurrency regulatory approval, says CME Chairman Terry Duffy appeared first on AMBCrypto.
Source: AMB Crypto

Bitwise: 95% Of Reported Bitcoin Trading Volume Is Fake

Coinspeaker
Bitwise: 95% Of Reported Bitcoin Trading Volume Is Fake
While many use CoinMarketCap as a go-to resource for cryptocurrency market data, roughly 95% of Bitcoin trading volume reported by this website is fake, according to Bitwise Asset Management report.
Bitwise: 95% Of Reported Bitcoin Trading Volume Is Fake

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Source: CoinSpeaker

How Cryptocurrency Trading Volume Fiasco Can Lead to Bitcoin ETF Approval

The SEC has held the ETF approval for Bitcoin and Cryptocurrency for a couple of reasons. The most significant reason for the same has been the unregulated marketplace. While decentralization in Bitcoin is an attribute that makes it an ideal asset class, the market places or Exchanges that provide for conversion of FIAT to Cryptocurrency is still controlled by independent entities.
A recent report by Bitwise Asset Management published by the SEC inferred that more than 95% of the cryptocurrency volume is being faked. Hence, according to that, the ‘actual spot volume’ on cryptocurrency exchanges is a little above $270 million. Moreover, the reported volume of CME and Cboe Bitcoin Futures is more than one-third of the ‘actual spot volume’ estimated by Bitwise.
According to Bitwise Asset Management,
This is good news because it means CME— a regulated, surveilled market— is of material size, which important for an ETF.
The case of a Bitcoin ETF Approval Now
CME Bitcoin Futures reported a spot trading volume of $85 million. Moreover, according to Bitwise Asset Management, the actual trading volume of the Crypto-to-FIAT Exchanges is around $273 million. Hence, according to this statistic the Futures Trading Volume of CME alone accounted for 31.1% of the ‘Actual Exchange Volume.’
Moreover, there are other Bitcoin Futures market active in Europe and Japan as well. Hence, going by the above statistic, it can be said that the institutional investment might be in parity with the unregulated investment in Bitcoin.
However, the Exchanges have reported total spot volumes total to the tune of $6 billion. This can necessarily raise doubts on its demand being higher than $100 billion. However, it does not directly affect the total market capitalization of a cryptocurrency.
 
Parity Between Spot Trading of Bitcoin and Gold
The spot trading volume of Gold is 0.55% of its total market capitalization, while according to Bitwise statistics the ‘actual spot trading on Bitcoin is 0.39%. If the CME Futures volume is included in this data, the percentage will increase to 0.51%. The OTC trading volume on most exchanges is also not added in the Exchange Data.
All this suggest that the institutional investment in Bitcoin is considerably more significant than one expects. It is not only healthy in volume but also agrees statistically with the closest relatable asset class, i.e., Gold. Hence, a new form of informational mechanics for the trading of Bitcoin and Cryptocurrency in regulated Exchanges could alleviate the doubts around the Bitcoin ETF approval.
 
The post How Cryptocurrency Trading Volume Fiasco Can Lead to Bitcoin ETF Approval appeared first on Coingape.
Source: CoinGape

Bitcoin ETF In ‘Wait and Watch’ Mode As SEC Receives Rife Criticism Against It

While the crypto-community is eagerly waiting for ETF approval, many orthodox Commodity and Exchange Fund traders have expressed their disapproval for the ETF.
On February 13, 2019, the Securities Exchange Commission (SEC) invited comments from the traders on the proposal. While some traders reaffirmed their belief in the digital asset, the majority was still apprehensive of its utility and ‘intrinsic value.’
Dina, a US citizen expressed in her letter of intent that: “It is volatile, manipulated by the very few and has no real use case. I can see a lot of people getting hurt both financially and in other ways by you accepting this proposal. It is in my humble opinion that this proposal be rejected.”
Bitcoin’s Intrinsic Value Debate
Bitcoin is a peer-to-peer payment system that built on distributed consensus mechanism based on the Blockchain. Moreover, the value of the ‘token’ associated with it is presumably linked to its network and its capability as a store of value.
In a series of arguments against its ‘intrinsic value,’ Sam Ahn from Hana Trading USA Inc. noted that since Bitcoin hash value is only valuable when implemented on the Blockchain, the ‘hash’ value intrinsically does not hold any value. Therefore, as Bitcoin value is held by a combination of ‘hash value’ on a particular network, it is not a financial asset.
Gold’s price might not justify its luster in the future, nevertheless, it will continue to exist in the same manner. The Bitcoin ‘public ledger’ is also immutable. However, to transfer value validation from miners is quintessential.
Moreover, according to some traders that alone does not define the intrinsic value and the network capacity can change over time and that should not alter the characteristic features of the asset in question.
Sarah thourgh a public letter to the SEC, “I would like the committee to disapprove the proposed ETP. It has no value as a financial product let alone as a currency.”
Manipulation
The volatility debate on Bitcoin has diminished with time. However, the clouds of manipulation and FUD (Fear, Uncertainty, and Doubt) surround it eternally. The primary reason for associating with Bitcoin is currently based on its returns and not its transaction capabilities.
The optimism and belief around its success are also opposed by pessimism and arguments against its real-world adoption.
Avinash Shenoy cited the instances of evident manipulation in Bitcoin prices due to its non-regulatory structure and susceptible to manipulation due to comparatively low market capitalization.
Amongst many manipulation techniques applied to Bitcoins one of them includes:
Pump and Dump schemes organised through messaging apps such as Telegram are
ubiquitous and make the global manipulation of cryptocurrencies using both the
coordinated use of Bots and the speed at which news spreads on social media
possible.
Positive Letters of Intent 
While criticism was the theme of the letters, there were positive letters of intent too in favor of the ETF approval.
One such letter noted that:
“Regarding the argument of the SEC that has not yet approved an ETF because of manipulation and mainly appreciates the protection of investors is contradictory, because without an investment fund the investor is susceptible to buy bitcoins in deregulated exchanges and lose their investments (bitcoins), VanEck already offers insurance to cover possible losses and as such, the investor will show interest in investing in an ETF fund.”
The Big Question: Bitcoin ETF when?
The ETF approval seems to be stuck eternally. A piece of new news regarding the sentiments around ETF is released every day. However, a definitive decision from the SEC is pending forever.
The SEC will surely review these letters and take them into account in their decision. Moreover, the rising popularity and institutional support to Bitcoin also warrant some action from the regulator of the largest economy in the world.
The ‘wait and watch’ approach from the SEC on ETF approval can also be extended to the ‘securitization’ of cryptocurrency.
The post Bitcoin ETF In ‘Wait and Watch’ Mode As SEC Receives Rife Criticism Against It appeared first on Coingape.
Source: CoinGape

SEC Announces a Public Forum to Discuss Cryptocurrencies and Blockchain Technology

The Securities Exchange Commission of the US will host a ‘public forum’ to discuss digital assets like Bitcoin and other cryptocurrencies, and the underlying Distributed Ledger Technology (DLT).
SEC Press Release
The announcement was made through a press release on 15th March 2019. The public forum will be administered by the agency’s Strategic Hub for Innovation and Financial Technology (FinHub).
The FinHub public forum will be hosted at the SEC Washington DC’s Headquarters on May 31, 2019; the event will be streamed live on the SEC’s official website.
Topics of Discussion
The forum will host major FinTech leaders and people for academia. The goal of the forum is to foster greater communication and understanding around issues involving DLT and digital assets like Bitcoin and other cryptocurrencies.
The Press Release included:
Panelists will explore such topics as initial coin offerings, digital asset platforms, DLT innovations, and how these technologies impact investors and the markets.
SEC has already cleared its stance considerably and put a hold to illegal and unregulated Initial Coin Offerings. In a recent letter addressed to the legislative body, the SEC chairman outlined the updates on the regulatory improvements applied to cryptocurrencies and their approach in the future.
The Bitcoin ETF proposal also rests with the SEC. Hence, their take on DLT and digital assets especially Bitcoin is paramount to the success of DLT and cryptocurrencies. An Exchange Traded Fund licensed by the SEC would open doors for a plethora of derivates contracts and open the floodgates for financial institutions.
Since the US is the largest economy of the world, SEC’s approval or disapproval sets an example for other countries as well, especially the weaker economies.
What other outcomes do you expect from the forum? Please share your views with us. 
The post SEC Announces a Public Forum to Discuss Cryptocurrencies and Blockchain Technology appeared first on Coingape.
Source: CoinGape

CBOE Will No Longer List New Bitcoin Futures This March

CoinSpeaker
CBOE Will No Longer List New Bitcoin Futures This March
The Chicago Board Options Exchange will stop listing new Bitcoin futures on its platform this month as it needs to review its approaches in this sphere.
CBOE Will No Longer List New Bitcoin Futures This March

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Source: CoinSpeaker

The SEC Could Approve the First Bitcoin ETF in 2019

CoinSpeaker
The SEC Could Approve the First Bitcoin ETF in 2019
Professional crypto trader and writer Bill Adams takes a look the biggest developments in the Bitcoin ETF saga, unveiling the chances for eventual ETFs approval in 2019.
The SEC Could Approve the First Bitcoin ETF in 2019

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Source: CoinSpeaker

Will SEC and CFTC Ever Come to a Compromise?

CoinSpeaker

Will SEC and CFTC Ever Come to a Compromise?

Konstantin Rabin, financial expert and crypto enthusiast, takes a look at how regulatory institutions are different in terms of Bitcoin regulation and whether they will come to an agreement at all.

Will SEC and CFTC Ever Come to a Compromise?

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Source: CoinSpeaker

US Counsel Hints Bitwise & VanEck bitcoin ETF proposals On SEC’s Way

Bitcoin ETF, the very hot topic since late 2018 is on way to SEC’s final decision. According to the latest SEC’s announcement and the tweet by Jake Chervinsky who serves as Defense Counsel in the U.S hints that SEC’s decision for pending Bitwise and VanEck Bitcoin ETF is near – the countdown begins.
To remind, the VanEck Bitcoin ETF was filed in conjunction with CBOE (Chicago Board Options Exchange) and resubmitted to SEC with few amendments in late Jan 2019. On the other hand, the Bitwise Asset Management’s ETF was filed with NYSE Arca and published the proposal in the Federal Register on Feb 15, 2019. However, SEC didn’t respond to any ETF yet, in fact, it had asked to withdraw ‘Reality Shares’ its ‘partial-bitcoin ETF’ a day after submission.
Furthermore, in the history of ETF until today, there’s no definite decision from SEC – but this time, the team has recently announced via ‘Federal Register’ that ‘BitWise and VanEck’ ETF proposals are under review. Means that on Feb 20, 2019, SEC announced that initial decision on ETF is on way and they have also initiated ‘countdown of 45 days’ to decide – whether the approval, rejection or extension.

In a similar regard, Jake Chervinsky – who quite often shares the status on SEC’s decision towards important crypto assets and proposals including ETFs – took to Twitter, notifying the sequel update as ‘the clock is running on ETF proposals’. His tweet goes as follows;

The clock is running on the new Bitwise & VanEck bitcoin ETF proposals. The SEC's current deadlines are April 1 for Bitwise & April 6 for VanEck.
Remember, the SEC can & likely will delay up to three times. The absolute final deadlines to watch are October 13 & 18 respectively.
— Jake Chervinsky (@jchervinsky) February 20, 2019

Counting the initial 45 days after the proposal formally published in the ‘Federal Register on Feb 20, the response would be expected to reveal after March 13. Furthermore, the US SEC would take another three weeks (ie. Expected April 5) to announce its decision. Notably, Jake clarified the SEC’s current deadlines for Bitwise is April 1 and for VanEck is April 6.
At the moment, any comment from both the firm is still not made public – stay tuned with Coingape to know more what would likely happen with ETF before the SEC finally revealed its decision.
The post US Counsel Hints Bitwise & VanEck bitcoin ETF proposals On SEC’s Way appeared first on Coingape.
Source: CoinGape

45 Days Left for SEC to Decide on CBOE-VanEck Bitcoin ETF

CoinSpeaker

45 Days Left for SEC to Decide on CBOE-VanEck Bitcoin ETF

On April 5th, 2019, the SEC will have to announce their decision to either approve, deny or extend the decision-making period on Cboe/VanEck/Solid X’s Bitcoin ETF.

45 Days Left for SEC to Decide on CBOE-VanEck Bitcoin ETF

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Source: CoinSpeaker

SEC and CFTC Set to Collaborate To Regulate Bitcoin ETFs and Other Investment Products

Reports revealed that the high profile regulators of the crypto market, SEC and CFTC is open to collaborating to regulate crypto investment products, including Bitcoin ETFs.
SEC Commissioner Hints To Collaborate
However, during ‘a Bipartisan Policy Center event’ last week which themed on ‘The Year Ahead for Capital Markets’, the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) discussed the better approach on regulating crypto products such as futures and ETF based on Bitcoin. At the event, so-called Crypto Mom, the SEC commissioner, Hester Peirce says that;
“At the SEC we’ve been unwilling to … sign off on a bitcoin ETF, an exchange-traded product based on bitcoin. My concern about our approach in that area is it looks a little bit like a merit-based approach judging the underlying bitcoin markets.”
An Exchange-traded fund based on Bitcoin is on rich bulletins every new day – since SEC is reluctant to approve ETF filings. In fact, Coingape reported that SEC has forced ‘a partial bitcoin ETF proposal, submitted by ‘Reality shares’ to withdraw it.

SEC staff requested to withdraw the ETF proposal submitted by @RealityShares On Next Day of Filinghttps://t.co/gCq8GPFQVU#SEC #ETF #BitcoinETF #Bitcoin #Cryptocurrency #Crypto #Finance #Bitcoinfutures
— CoinGape (@CoinGapeMedia) February 14, 2019

CFTC Follows Self-Certification Rule
Although regulations on Bitcoin and Crypto isn’t certain at many locations of the world the firms are building many projects on top of it. In Peirce view, regulators should be at their best diligence to decide on any product which are built on top of the market and those that are not regulated yet. With this, she argued that;
There are lots of markets that aren’t regulated but we nevertheless build products on top of them.” She said“I think we have to be very careful with that kind of reasoning’.
As such, the discussion took over by Brian Quintenz who is the CFTC Commissioner. He explains that any contract before they present will ensure that it meets the requirements of the Act. He notes that;
“We have a process in the Commodity Exchange Act that allows the exchanges to self-certify a contract if they believe it meets the requirements of the Act.
With the self-certification process, CBOE and CME will proceed with the contract that they see has good potential and opportunity to take forward. Elaborating this, CFTC commissioner argues that we disagree you when we really see a project has a better opportunity and ‘we self-certify that contract’.
 “[Both CBOE and CME Group] pursue that self-certification [route] so these contracts get listed without our approval but also without our disapproval.”
Interested in Working Together
Taking these sneaky points, Peirce goes on discussing the current market scenario which is quite confusing on regulatory stance. While explaining the better way on deciding crypto assets, Peirce hints to collaborate SEC and CFTC to serve better on providing guidelines. In her words;
“[This is] an area where I think Brian and I are interested in working together.”She continued, there [are] questions about where your jurisdiction ends and ours begins and again we don’t want to have overlap there so you know my main concern has been that I think we need to do a better job providing guidance,”
So readers, what do you think of SEC and CFTC collaboration if it happens? Do you think it onboard the clarity in the crypto market? share your opinion with us.
The post SEC and CFTC Set to Collaborate To Regulate Bitcoin ETFs and Other Investment Products appeared first on Coingape.
Source: CoinGape

SEC could include Bitwise’s Bitcoin ETF in federal registers; proposal under review for approval

Since the turn of 2019, the SEC has been prominently involved in the sphere of cryptocurrencies with certain institutions reaching out for Bitcoin ETF approvals. To add to this, the recent remarks made by former SEC Commissioner Robert Jackson Jr, that it was only a matter of time before a Bitcoin ETF gets approval, has stirred a lot of attention towards the independent US government federal agency.
According to reports, the US Securities and Exchange Commission [SEC] have initiated the process of considering a rule change for listing the Bitcoin ETF proposal submitted by Bitwise Asset Management and NYSE Arca on February 11.
The proposal itself was published in the Federal Register on 15 February, which leaves the authorized personnel with 45 days to make the initial decision to approve, reject or further extend the proposal, even though the SEC will, in total, have a duration of 240 days to make the final decision on whether to approve or disapprove the proposal.
The Bitcoin ETF application was first put forward by Bitwise Asset Management in January 2019, but it could not get published in the Federal Register due to the US government shutdown. However, there has been a new turn of events now, as the proposal is now under review by the SEC.
According to the initial registration statement, the ETF would track the Bitwise Bitcoin Total Return Index, which takes the value of Bitcoin and any meaningful hard forks into account.
Moreover, what’s unique about Bitwise’s Bitcoin ETF is that the company wants its fund to be supported with spot prices from exchanges and physically settled futures contracts. This is different from any other BTC ETF that was proposed before, as previous ETFs were supported with cash-settled contracts.
According to the initial formal statement, the Bitwise ETF would track the Bitcoin Total Return Index, which will take the value of Bitcoin, and further significant hard forks into consideration.
Moreover, the company’s BTC ETF would want their fund to be supported with spot prices from exchanges and physically settle future contracts. This sets the company’s ETF apart from the earlier BTC ETFs that were put forward and supported with cash-settled contracts.
Bitwise’s global head of Exchange-Traded Funds, John Hyland, painted an optimistic image and seemed hopeful that the SEC will approve their Bitcoin ETF.
He stated,
“While there can be no assurance that the 19b-4 application will be granted or the SEC will review and ultimately accelerate the registration statement, we are optimistic that 2019 should be the year that a bitcoin ETF launches.”
The SEC has in the past turned down its approval for several Bitcoin ETF proposals. However, since SEC Commissioner Robert Jackson Jr’s statement, Hester Peirce, another commissioner at the SEC has come forward and offered optimism about the eventual approval of a Bitcoin ETF.
The news around Bitcoin ETFs have invited a lot of attention from crypto enthusiasts around the world who hope that a successful ETF will lead to an event which will help take the virtual currency out from the current bearish trend.
The post SEC could include Bitwise’s Bitcoin ETF in federal registers; proposal under review for approval appeared first on AMBCrypto.
Source: AMB Crypto