SEC Approves Bitwise’s Spot Bitcoin ETF Application

In a remarkable development for the crypto ecosystem, the United States Securities and Exchange Commission (SEC) has approved Bitwise’s Exchange Traded Fund (ETF) product application for spot Bitcoin.

The acceptance of Bitwise’s spot Bitcoin ETF application by the SEC is crucial for the cryptocurrency industry, as it brings the possibility of a regulated Bitcoin ETF closer to fruition.

Several Bitcoin ETF proposals have been submitted to the market regulator over the past few years.

Still, they have been repeatedly rejected due to concerns regarding market manipulation and custody of the underlying assets.

The current recognition suggests that the regulator views the Bitwise spot Bitcoin ETF application as sufficiently complete and deserving further consideration.

It is essential to note, however, that the SEC has not yet approved the ETF.

The regulator will now initiate a formal review process, including a comprehensive examination of the proposal and a public comment period.

If approved, the Bitwise spot Bitcoin ETF will provide individual investors with a more accessible and secure way to invest in Bitcoin.

Those who want exposure to Bitcoin must currently navigate the complex world of cryptocurrency exchanges or choose alternative investment vehicles such as Bitcoin Trusts or futures contracts.

Bitwise resubmitted its spot Bitcoin ETF application in June, following a slew of applications fueled by the renowned asset manager BlackRock.

This filing demonstrates Bitwise’s determination to pursue the ETF approval process and its ongoing efforts to comply with regulatory requirements.

Bitwise’s Chief Investment Officer, Matthew Hougan, noted in the company’s initial filing that the SEC’s rejection of previous Bitcoin ETF applications was accompanied by detailed memos outlining the regulator’s concerns regarding the ecosystem.

These concerns have predominantly centered on market manipulation, custody of underlying assets, investor protection, and market integrity in general.

The Chicago Mercantile Exchange (CME) now meets SEC requirements.

It provides a transparent and regulated platform for Bitcoin futures trading, which Bitwise believes will increase the likelihood that the SEC will approve its application.