Bitwise Asset Management has submitted a new filing for a proposed rule change that would accommodate its planned Bitcoin spot ETF. This comes after the U.S. Securities and Exchange Commission (SEC) rejected a previous Bitcoin spot ETF application from Bitwise in June 2022.
SEC’s Reasons for Rejection
The SEC had stated that Bitwise’s ETF could not put in place an adequate surveillance-sharing, could not provide protection against market manipulation, and could not show that the relevant market was of significant size. Although the SEC had suggested that future applications could potentially meet these criteria, Bitwise has attempted to demonstrate that this is the case in its latest filing.
New Filing Requirements
In the new filing, BitWise has suggested that the SEC should approve, reject, or start other proceedings around its proposed rule change within 45 to 90 days. The application was published by the New York Stock Exchange (NYSE) but has not been processed by the SEC, and the actual deadline remains unclear.
Comparison with BlackRock’s ETF Application
Bitwise’s latest filing follows a June 15 Bitcoin spot ETF filing from the asset management giant BlackRock. Although some experts suggest that the application is unlikely to succeed, there is optimism due to the fact that the SEC has rarely rejected BlackRock’s ETF applications. However, the SEC has not yet approved a Bitcoin spot ETF and has rejected numerous other applicants within the cryptocurrency and financial industry.
Bitwise CEO Matthew Hougan acknowledged the situation in March, stating that although he believes the U.S. will eventually approve a spot Bitcoin ETF, there is currently “no path forward” for companies that want to offer such a fund.
In summary, Bitwise Asset Management has submitted a new filing for a proposed rule change that would accommodate its planned Bitcoin spot ETF. The previous application was rejected by the SEC due to inadequate surveillance-sharing, protection against market manipulation, and market size. However, Bitwise has attempted to demonstrate that these criteria can be met in its latest filing. The SEC has not yet approved a Bitcoin spot ETF and has rejected numerous other applicants within the cryptocurrency and financial industry. Although BlackRock’s recent ETF application has prompted optimism, the likelihood of its success remains uncertain.