- A new document confirms that Bitwise has withdrawn its application for a Bitcoin ETF.
- The company describes that it will resubmit the application at a later date.
Bitwise last submitted an application to the Security and Exchange Commission (SEC) at the end of the third quarter of 2019 for approval of a Bitcoin Exchange Traded Fund (ETF). However, on October 9, 2019, the SEC rejected the application submitted by Bitwise Asset Management and NYSE Arca. According to the SEC, there is still some catching up to do, especially in the important area of market manipulation and illegal activities.
Bitwise withdraws proposal unexpectedly
Bitwise filed a letter with the SEC on Tuesday confirming that the company is withdrawing its latest Bitcoin ETF application dated January 10, 2019. The document explains in detail:
Pursuant to Rule 477 of the Securities Act of 1933 (the “Act”), Bitwise Bitcoin ETF Trust (the “Registrant”) respectfully requests the withdrawal of the Registrant’s registration statement on Form S-1 (Reg. No. 333-229180) (the “Registration Statement”). The Registration Statement was initially filed with the Securities and Exchange Commission (the “Commission”) on January 10, 2019.
Maut Hougan, Global Research Manager at Bitwise, explains that Bitwise is withdrawing the application at this time but will resubmit it in the near future:
We did indeed withdraw the application. This is a procedural step, and we intend to refile our application at an appropriate time.
Bitwise has been working for more than a year to convince the SEC. So far, however, not all SEC requirements have been fully met. So far there have been 8 meetings between Bitwise and the SEC, but no agreement has been reached. Bitwise has recently submitted a 500 page white paper and detailed reports and presentations. Even a previous detailed report on the decline in counterfeit trading volumes on the world’s largest exchanges could not change the SEC’s mind.
The SEC continues to rely on the statement that the Bitcoin market can be manipulated and that there is no reliable pricing mechanism within the market. Indeed, SEC President Jay Clatyton last year declared that a Bitcoin ETF could not be approved in the near future. The market remains susceptible to manipulation and is not mature enough.
Bitwise is not an isolated case
Last year VanEck and SolidX also filed a Bitcoin ETF application and withdrew it twice. The company withdrew the Bitcoin ETF application for the first time on January 23, 2019, after it was threatened with rejection due to the US government’s “shutdown” at the time.
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Some experts and investors in the crypto market see the approval of a Bitcoin ETF as a great opportunity for new capital to flow into the market, which could lead to an increasing Bitcoin price in the long term. However, the approval would further legitimize BTC and allow large institutions to participate in this asset class.