Bitwise asset management has Withdraw its long-term Bitcoin ETF application After the proposal was rejected by the Securities Regulatory Commission in October, it cooperated with the US Securities and Exchange Commission (SEC).
Bitwise first submitted an application to the U.S. Securities and Exchange Commission to become the first Bitcoin ETF in history Last january, After several other companies failed due to similar proposals. Given the key differences between its proposal and previous proposals, Bitwise’s application is seen as the best hope for Bitcoin ETFs. The index aims to obtain the value of Bitcoin from various cryptocurrency exchanges, and therefore, provides a more accurate and precise market value for the coin.
Another important difference is that Bitwise plans to supervise ETFs by allowing a trusted third-party bank or company to hold its actual bitcoins. In March, the company released a bitwise report on transaction volume, claim 95% of Bitcoin transaction volume is forged. Bitwise used it as a reason for the SEC to accept its ETF proposal. According to Cointelegraph, by ignoring most of the exchange’s trading volume, the company believes that BTC price formation mainly occurs on regulated exchanges.
However, the proposal has been rejected after the US Securities and Exchange Commission stated that it did not meet the necessary legal requirements to prevent market manipulation or other illegal activities. “This is the next step in achieving the long-term goal of bringing Bitcoin ETFs to the market. We plan to resubmit our application in due course. We are currently working to answer the questions raised by the SEC in its 112-page report. To us initially Response to the submitted documents,” Said Matthew Hougan, Bitwise’s global research director.
The SEC rejected at least a dozen Bitcoin ETF proposals, and Wilshire Phoenix filed another application, which will combine Bitcoin and U.S. Treasury bonds and is expected to take effect on February 26.
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