Cryptocurrency asset management firm, Bitwise, has submitted another Bitcoin ETF filing to the United States Securities and Exchange Commission (SEC). The firm’s previous BTC ETF filing was among the ones rejected by the SEC in 2018
PHYSICALLY-BACKED BITCOIN ETF
If at first, you don’t succeed, try again. The famous maxim seems contextual for Bitwise as the firm prepares for another go at obtaining SEC approval for a Bitcoin ETF. According to a press release published on Thursday, January 10, 2019, the cryptocurrency asset management firm filed an initial registration statement on Form S-1 with the SEC.
This new filing is for a physically-backed Bitcoin ETF listed on the NYSE Arca. According to the announcement by Bitwise, the newly proposed BTC ETF will track the company’s Bitcoin Index.
Going forward, NYSEC Arca should in the coming days, file a “Rule Change” with the SEC allowing it to list shares of the Bitwise BTC ETF under an approved ticker symbol.
SATISFYING THE SEC
For Bitwise, the focus is on satisfying the SEC this time around. The Commission has continuously affirmed its misgivings about approving a Bitcoin ETF based on issues such as market manipulation, fair pricing, and liquidity.
Commenting on the company’s preparedness in this regard, the Global Research chief at Bitwise, Matt Hougan, said:
The SEC has asked thoughtful and relevant questions about the quality of the crypto trading ecosystem, the reliability of crypto pricing, the strength of the arbitrage function in crypto and the robustness of crypto custody. We have spent the past year researching these questions and look forward to discussing those findings with the SEC staff in connection with the filing and listing application.
One of the significant changes included in the new filing is that it uses third-party custody services. As for fair pricing concerns, the Bitwise BTC index aggregates pricing data from many of the prominent exchange platforms in the industry. The company is hoping that such a mechanism constitutes fair asset pricing for the SEC.
THE QUEST FOR BTC ETF APPROVAL CONTINUES
For John Hyland, the Bitwise Global ETF chief, the hope of an SEC-approved Bitcoin ETF remains firm. Commenting on the issue, Hyland said: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.
In February, the Commission will decide on the last remaining BTC ETF filing from 2018. Having used up all the postponements allowed by law, the SEC must deliver a final approval or rejection of the VanEck/SolidX proposal.