- Bitwise has refiled its application for Bitcoin spot ETF with new amendments.
- This amendment solidifies the hope the product will be approved.
Investment Management giant Bitwise has made certain amendments to its spot Bitcoin (BTC) Exchange Traded Fund (ETF) application as a result of feedback and queries highlighted by the United States Securities and Exchange Commission (SEC). The amended proposal has been resubmitted to the regulator, per a post made by popular Bloomberg ETF analyst James Seyffart.
With the effected amendment, the firm’s hopes for approval from the SEC have heightened further.
According to Seyffart, most of the alterations made by Bitwise to its application are the same as those seen in the recently amended document other candidates vying for a spot Bitcoin ETF approval. The only new information that the ETF analyst outlined is the intended ticker for Bitwise BTC ETF. Seyffart stated that the ticker of the Bitwise spot Bitcoin ETF, if and when the approval comes from the SEC, will be ‘BIBT’.
Reacting to his post, one individual identified as Hank_xbt on the X app asked Seyffart if the amendments were significant. In Seyffart’s response, he pointed out that the amendment only indicates that there is progress and that Bitwise is in constant communication with the SEC over its spot BTC ETF application.
About two weeks ago, ARK Investment Management and 21Shares updated their Bitcoin ETF proposal as well. The adjustment reflected all of the SEC’s concerns including intricate details around segregated asset handling, and response to matters of valuation, illicit activities, and mining. Markedly, the ARK 21Shares amended proposal manifested an astute understanding of the regulatory landscape and a meticulous approach to alleviating potential apprehensions.
Spot Bitcoin ETF Approval: If and When
A look through history shows that the SEC has not yet approved a spot BTC ETF. The regulator has constantly expressed trepidation towards giving its support to this specific product offering citing market manipulation and the case of fraud. Unfortunately, Bitwise has been a victim of this scorn in the past. Four years ago, the SEC rejected a BTC ETF application from Bitwise and NYSE Arca.
The disapproval decision came after Bitwise waited for almost ten months. In the 112-page document published by the SEC, it was stated that Bitwise’s request does not meet the complex legal requirements, especially in the field of market manipulation and illegal activities which still needs to be tackled.
After receiving the disappointing news, nothing was heard about Bitwise in terms of a spot BTC ETF until June this year when BlackRock filed its first application. Bitwise joined other asset managers to refile for the BTC ETF offering. However, the SEC announced a delay in its decision on the applications from all applicants including Bitwise.
In the case of “if”, industry giants are certain that approval from the SEC is very likely. Then in the matter of “when”, the pressure is building as many industry insiders are optimistic that the approval will still come before the end of 2023.
