Bitwise withdraws bitcoin ETF proposal

Quick Take

  • Bitwise has withdrawn its bitcoin ETF proposal
  • Matt Hougan, global head of research at Bitwise, confirmed the move to The Block, stating: “We intend to refile our application at an appropriate time”
  • The SEC remains concerned about market manipulation

Cryptocurrency asset management firm Bitwise - for now, at least - has withdrawn its bitcoin exchange-traded fund (ETF) proposal.

According to a note submitted to the U.S. Securities and Exchange Commission (SEC) on Tuesday, Bitwise said the move is “consistent with the public interest and protection of investors.”

Matt Hougan, global head of research at Bitwise, confirmed the move to The Block, stating:

“We did indeed withdraw the application. This is a procedural step, and we intend to refile our application at an appropriate time.”

Hougan added that the firm is currently “working hard” on answering the questions that the SEC raised in its 112-page response to its initial filing. “We remain fully committed to the development of a bitcoin ETF.”

Bitwise is yet to determine timelines for the refiling.

The news comes just weeks after Bitwise said it is “committed” to provide all investors with the ability to access bitcoin in a regulated and familiar fund format. 

Bitwise first filed its ETF proposal along with NYSE Arca in January 2019. Since then, Bitwise has met with the SEC eight times, Hougan told The Block last month, adding that the firm has also submitted 500 pages of a whitepaper and a presentation on fake volume during the period.

In September, Cboe BZX Exchange also withdrew its VanEck/SolidX bitcoin ETF proposal after facing rejections.

At present, Wilshire Phoenix’s bitcoin and U.S. Treasury bond ETF proposal is the only proposal pending for review with the SEC and is expected to be ruled on by Feb. 26.

Several firms have filed bitcoin ETF proposals, but none has yet got the approval as the SEC remains concerned about market manipulation. Jay Clayton, chairman of the SEC, once said he doesn’t see a pathway to a crypto ETF approval until concerns over market manipulation are addressed.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The Era of dFMI for Institutional Digital Asset Markets

Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc.  The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized. 
Read Full Story
Sponsored Post

Retail traders are here to stay, says eToro's US CEO

On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.
Read Full Story
Jan 26, 2022, 4:23PM UTC