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Bitcoin News: Bitwise withdraws Bitcoin ETF application

  • A new document confirms that Bitwise has withdrawn its application for a Bitcoin ETF.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.

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.

It remains to be seen, however, whether and when approval will actually be granted. Bitcoin has been experiencing bullish momentum for a few days now, rising to a price of over USD 8,750.

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About Author

Collin is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Collin endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Collin's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Collin's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Collin continues to be a driving force in the cryptocurrency community.

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