The US Securities and Exchange Commission (SEC) said a few days ago that it had not yet decided whether or not to authorize Bitwise Asset Management to list a spot Bitcoin exchange-traded fund (ETF). The SEC also asked for public input on the fund’s application. The regulator said it would start a process to decide whether Bitwise Bitcoin ETP Trust’s application to list on Intercontinental Exchange Inc.’s NYSE Arca market. would be accepted or rejected. The delay comes after several issuers, including Fidelity, SkyBridge and Valkyrie, were rejected on-site ETFs by the SEC in recent months.
Here are 5 things to know about the delay:
1) The Securities and Exchange Commission has asked Bitwise to explain how it plans to prevent stock manipulation, fraud and other potential problems at its planned Bitcoin ETF site. It also wanted to know more about forecasted trading volumes, liquidity and transparency in the Bitcoin markets.
2) The SEC also expressed concerns about the liquidity and transparency of the Bitwise Bitcoin ETP Trust and asked for more information on the suitability of Bitcoin as the underlying asset of the fund.
3) The SEC has also sought advice on various aspects of the Bitwise ETF application, including the estimated volume of the ETF and whether it could have a significant effect on Bitcoin futures trading in CME Group’s market.
4) While the SEC rejected Bitcoin ETFs from numerous issuers, including Fidelity, SkyBridge, and VanEck, futures-backed products such as the ProShares Bitcoin Strategy ETF and the VanEck Bitcoin Strategy ETF were approved. Since the SEC approved the first Bitcoin futures ETFs last year, there has been a sustained revival of interest in spot Bitcoin ETFs. The ProShares Bitcoin Strategy ETF became one of the most popular publicly traded funds in history. However, it seemed to capture most of the hype leading up to its launch, something the Valkyrie Bitcoin Strategy ETF was missing.
5) The Securities and Exchange Commission has given Bitwise 21 days to respond to its concerns.
Bitcoin’s value has fallen to about half in recent months, reaching a six-month low of $32,950 (approximately Rs. 24.68 lakhs) on January 24 after peaking at $69,000 (approximately Rs. 51.7 lakhs) on January 24. in Nov. At the time of writing, the world’s oldest cryptocurrency was trading at around Rs 29.35 lakhs.