SEC moves Bitwise Bitcoin ETF again
Home News SEC moves Bitwise Bitcoin ETF again
Marcus Misiak –
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the case of the NYSE Arca submitted Bitwise Exchange Traded Fund (ETF) application.
The U.S. Securities and Exchange Commission (SEC) is currently considering three Bitcoin Exchange-Traded Funds (ETFs). One of these is the Bitwise Bitcoin ETF Trust , the NYSE Arca Inc. 28. January has been submitted. 29. In March, the SEC 16. Of may as the day for your decision about this Bitcoin ETF set. Already on 7. May filed a Bitwise however, an Amendment that replaced the original application in its entirety. According to the amended registration statement that was filed with the SEC:
The Trust will hold Bitcoin […] [and] will store your Bitcoin in a supervised Third-party custodian and no derivatives can be used, which could expose the Trust to a counterparty and credit risk.
In response, the SEC has declared yesterday that they will postpone their decision on the much-anticipated Bitwise Bitcoin Exchange Traded Fund (ETF).
In addition, Bitwise explained that the Trust in Bitcoin will not directly buy or sell. Instead, “provide the authorized participants of Bitcoin to the Trust in exchange for shares of the trust, and the Trust provides Bitcoin to authorized participants when authorized participants to redeem shares of the trust.” In the submission can also be executed, that
of the Trust, to ensure that the price of trust shares reflects the actual Bitcoin market, its shares daily on the basis of rates, rating out of ten Bitcoin exchanges, representing Substantially all of the economically significant Spot trading volume on Bitcoin exchanges around the world.
22. March tweet Bitwise and made it clear that “the exact methodology largely reflects the settlement price methodology for CME Futures is reflected, of which we believe that you have the correct structure”. The company added that the stock exchanges are Binance, Bifinex, Bitflyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, Itbit, Kraken, and Poloniex, and found that five of them “sophisticated market monitoring tools have been implemented to prevent market manipulation and bad behaviour”.
The Bitwise Bitcoin ETF would have been at the time of approval of the first regulated crypto-ETF with the SEC. The SEC is still open to contributions from the Public, and invites comments to further position, after it has received comments on the recent request of the Commission in March, only 25 position. In the submission it is noted that unreliable, crypto-trade volume promotes an inefficient approach to the market.
Unfortunately, in practice, we see that the market for Bitcoin is disordered and inefficient, since many of the unregulated crypto-exchanges-exist operators to unknown places.
The SEC therefore asks the Public expressly for an opinion on Bitfinex, and to assess whether the recent controversy has influenced the market. This is, in particular, also consider in respect to that Bitwise, Bitfinex has been removed from the list of venues that will be taken into account for the calculation of the Bitwise Daily Bitcoin Reference price.
Crypto-lawyer Jake Chervinsky said that the new period, the 14. In August, the SEC, the deadline to 13. October could extend:
As expected, the SEC has delayed its decision on the Bitwise ETF. The new deadline is August 14. The SEC can delay one more time to a final deadline of October 13.
Curiously, the SEC hasn’t made a decision on VanEck yet, but it will likely be delayed too.https://t. co/MeCJSxCHW7
— Jake Chervinsky (@jchervinsky) 14. May 2019
SEC Commissioner Hester Peirce: “The time is ripe for a Bitcoin ETF”
The SEC Commissioner Hester Peirce said at the Consensus conference held on Monday that the time for a Bitcoin ETF was ripe. Peirce, also known as “crypto-Mom” for a discussion of the Consensus, the regulatory environment for Bitcoin ETFs. They expressed their dissatisfaction with the current law and reiterated that the SEC should do more to create a regulatory framework for crypto currencies, including rules. Peirce encouraged the audience to write to the SEC to help the SEC to understand the market. A Problem they noticed was the market manipulation, which “is a concern that people raise time and again in the SEC”.
The SEC had recently issued a 14-page document that describes a frame of the issuers in the execution of a Howey-supported analysis, to assess whether it is Token-Offered securities. The Framework describes characteristics that may indicate that the offer is likely to be an offer of securities. Peirce showed, however, concerned that this framework “could raise more questions and concerns than it answers”.
The Commissioner also reiterated her earlier statement that the SEC was not empowered to examine the underlying asset (Bitcoin), if it is a question of whether a proposed rule change to be approved for an ETF.
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