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

JUST IN – The SEC officially acknowledges Bitwise’s spot #Bitcoin ETF application 👀 pic.twitter.com/XXWOybjYxb

— Bitcoin Magazine (@BitcoinMagazine) July 13, 2023

Significance of SEC’s Acknowledgement

The SEC’s acknowledgment of the Bitwise spot Bitcoin ETF application is crucial for the cryptocurrency industry because it moves the potential of a regulated Bitcoin ETF closer to reality.

Over the past few years, several Bitcoin ETF proposals have been submitted to the markets regulator, but they have faced repeated rejections due to concerns about market manipulation and custody of the underlying assets. The current recognition implies that the regulator considers the Bitwise spot Bitcoin ETF application to be sufficiently complete and worthy of further consideration. However, it is important to note that the SEC has not yet approved the ETF. 

The regulator will now initiate a formal review process, which includes a thorough examination of the proposal and an opportunity for public comment. If the Bitwise spot Bitcoin ETF is approved, it will give individual investors a more accessible and secure alternative to invest in Bitcoin. 

Currently, individuals who want exposure to Bitcoin must navigate the complex world of crypto exchanges or opt for alternative investment vehicles such as Bitcoin Trusts or futures contracts.

Bitwise Renewed Commitment for Bitcoin ETF

Bitwise re-filed its application for spot Bitcoin ETF in June following a host of applications fueled by renowned asset manager BlackRock. This filing indicates Bitwise’s commitment to pursuing the ETF approval process and signifies its ongoing efforts to meet regulatory requirements.

At the time of its initial filing, Bitwise’s Chief Investment Officer, Matthew Hougan highlighted that the SEC’s rejection of previous Bitcoin ETF applications by the SEC was accompanied by detailed memos outlining the regulator’s concerns about the Bitcoin ecosystem. 

These concerns have primarily revolved around issues such as market manipulation, custody of underlying assets, investor protection, and overall market integrity. 

However, Bitwise expressed confidence in the SEC’s potential to approve its application based on the fact that the Chicago Mercantile Exchange (CME) now meets the SEC’s requirements and provides a transparent and regulated platform for Bitcoin futures trading.

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

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