September 26, 2020

US Securities and Exchange Commission rejects Bitwise ETF offer from Bitwise

US Securities and Exchange Commission rejects Bitwise ETF offer from Bitwise

The US Securities and Exchange Commission (SEC) rejected the offer to register ETFs on Bitcoin.

In a statement of 9 October, the Commission said that filing applications with ETFfrom Bitwise Asset Management and NYSE Arca does not meet the required requirements. In particular, the regulator notes the possible manipulation of the market and illegal activities.

Note that the SEC decision does not coincide with recentcomments by Matt Hoogan, Managing Director and Global Director of Research at Bitwise. Hoagan was optimistic about the firm's chances of getting approval for a physical Bitcoin ETF. He noted the significant growth that has occurred in the crypto space in recent years, stating:

Two years ago, the Bitcoin market was notregulated, insured custodians. Today ... there are big names like Fidelity and CoinBase with hundreds of millions of dollars from companies like Lloyd’s of London.

In August, the regulator postponed its decision onthe proposal - together with two other crypto applications for ETF registration - until October 13. Bitwise initially filed for a change to the rules on US securities laws in January.