The United States Securities and Exchange Commission (SEC) has accepted Bitwise’s proposal for a spot Bitcoin Exchange Traded Fund (ETF) service, which is an important development for the cryptocurrency industry.

The Bitwise ETF plan needs to be approved by the SEC in order for the digital currency sector to realise its goal of having a legal Bitcoin ETF.

Several proposals for Bitcoin ETFs have been made to the market regulator over the past few years, but they have been repeatedly rejected due to worries about manipulation of the markets and control of the underlying assets. 

US Securities accepts Bitwise BTC ETF proposal

The regulator appears to believe that the Bitwise spot Bitcoin ETF application is sufficiently complete and deserves further review based on the present recognition. It’s crucial to remember that the SEC has not yet given the ETF its approval. 

The agency will now start a formal evaluation procedure that involves an in-depth analysis of the plan and a chance for public input. If the SEC approved the spot BTC ETF of Bitwise, then it will offer retail investors a more practical and secure way to invest in Bitcoin.

People who want exposure to Bitcoin currently have to either walk through the confusing world of cryptocurrency exchanges or choose alternative financial instruments like Bitcoin Trusts or futures contracts.

In June, Bitwise resubmitted the paperwork for a spot Bitcoin ETF in response to numerous submissions encouraged by famous asset manager BlackRock. This application demonstrates Bitwise’s dedication to the ETF approval procedure and highlights the company’s ongoing adherence to legal demands.

At the time of its first filing, Bitwise’s Chief Investment Officer, Matthew Hougan, emphasised that the SEC’s refusal of earlier Bitcoin ETF applications was supported by thorough documents describing the regulator’s worries about the Bitcoin ecosystem. 

Market manipulation, control of underlying assets, safeguarding investors, and general market stability have been the main topics of these worries. 

Although the Chicago Mercantile Exchange (CME) currently complies with SEC criteria and offers a clear and regulated venue for Bitcoin futures trading, Bitwise showed assurance in the SEC’s potential to approve its application.

The post US Securities accepts Bitwise proposal for spot Bitcoin ETF appeared first on CryptoShrypto.

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Filed under: Bitcoin - @ July 14, 2023 9:28 am