US Securities and Exchange Commission delays approval of Bitwise’s spot Bitcoin ETF listing. 5 things to know
The US Securities and Exchange Commission sought certain explanations from Bitwise
The US Securities and Exchange Commission (SEC) said a few days ago that it has yet to decide whether to authorize Bitwise Asset Management to list a spot Bitcoin exchange-traded fund (ETF). The SEC has also solicited public comments on the fund’s application. The regulator said it will initiate a process to decide whether to accept or reject the Bitwise Bitcoin ETP Trust’s application for listing on the NYSE Arca market by Intercontinental Exchange Inc. SEC ETFs in recent months.
Here are 5 things to know about delays:
1) The Securities and Exchange Commission asked Bitwise to explain how it plans to prevent stock manipulation, fraud, and other potential concerns in its planned Spot Bitcoin ETF . It also wants to know about the predicted stock trading volume, liquidity and transparency in the Bitcoin market.
2) The SEC also expressed concerns about the liquidity and transparency of the Bitwise Bitcoin ETP Trust and requested more information on Bitcoin’s suitability as the fund’s underlying asset.
3) The SEC has also sought opinions 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 on market of CME Group or not.
4) While the SEC rejected Bitcoin ETFs from many issuers, including Fidelity, SkyBridge, and VanEck, supported futures 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 renewed interest in spot Bitcoin ETFs. The ProShares Bitcoin Strategy ETF has become one of the most popular exchange-traded funds in history. However, it seems to have captured most of the pre-launch hype, which the Valkyrie Bitcoin Strategy ETF lacks.
5) The Securities and Exchange Commission gave Bitwise 21 days to respond to their concerns.
The value of Bitcoin has dropped by about half in recent months, hitting a six-month low of $32,950 (approximately Rs 24.68) on January 24 after peaking at $69,000 (approximately Rs 51.7). ) in November. At the time of writing, the world’s oldest cryptocurrency is trading at around Rs 29.35.
