Bitwise has produced a 31-page document that it has sent to the Securities and Exchange Commission (SEC). The purpose of the document is to suggest why the world is ready for a bitcoin exchange-traded fund (ETF).
A Chance for Bitwise to Take Over?
For the most part, this is nothing new. Van Eck Solid X ultimately forwarded a similar statement to the SEC earlier this year, only to withdraw its ETF proposal at the last minute. This withdrawal took place a few days ago when a final decision regarding the ETF was slated for mid-October.
At press time, no reason for the withdrawal has been given, and many traders and analysts are left heavily confused by the situation. This was a company that had been pushing for a bitcoin ETF since March of 2017, so it is odd to see the company throw in the towel like that after everything it went through to garner notice and approval.
At the same time, the situation has given Bitwise an opportunity to hog the spotlight. Now that Van Eck and Solid X are out of the picture Bitwise can potentially jump in and hit all the right notes with the SEC so that its own bitcoin ETF application gets attention from the right people.
The company’s global head of research Matt Hougan explains in a statement:
The reality is that the bitcoin market of today bears little resemblance to the crypto market of a few years ago. The crypto market today is one dominated by firms like Jane Street and Fidelity. It’s one where a regulated, institutional custodian can provide world-class services and is insured by Lloyd’s of London.
In the document, the argument for a bitcoin ETF has three main points:
· The bitcoin spot market has become efficient.
· Bitcoin custody has become fully institutional.
· The regulated futures market has become significant.
Making Little Headway
Sadly, SEC chairman Jay Clayton is expressing doubts that a bitcoin ETF would make its way to the front financial pillar anytime soon. In fact, today, during New York’s Alpha Conference, Clayton spoke ill of the prospects of bitcoin, claiming that:
If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or the New York Stock Exchange… they are sorely mistaken. We have to get to a place where we can be confident that trading is better regulated.
The document submitted by Bitwise has been posted for public comment. Officially known as the Bitwise Bitcoin ETF Trust, should the proposal meet all the requirements and garner approval from the SEC, it would trade on the New York Stock Exchange (NYSE). The SEC will make its decision regarding the application no later than October 14.