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Regulatory Series on Cryptocurrencies: US SEC Reviews Recently Declined Bitwise Bitcoin ETF Application

The US SEC (Securities and Exchange Commission) has declined various proposals for bitcoin ETFs including the latest one from Bitwise. The US security watchdog (SEC) is now reviewing its decision about the Bitcoin exchange-traded fund (ETF) filing from Bitwise Asset Management and NYSE Arca.

The SEC has announced that the ETF filing from Bitwise Asset Management and NYSE Arca is reconsidered for review. The U.S. regulators mentioned that the applicants did not meet the necessary requirements, that could be potential market manipulation, custody issues or even illicit activities, due to which the application might have been declined. 

Bitwise had filed for an initial registration statement on Form S-1 back in January with the U.S. Securities and Exchange Commission (SEC) relating to a new proposed physically held bitcoin exchange-traded fund (ETF).

Bitwise Asset Management, which is a leading provider of crypto-asset index and beta funds, has appointed ‘BNY Mellon’ as the transfer agent, administrator and a custodian of its proposed bitcoin exchange-traded fund (ETF).

Moreover, the proposed Bitwise Bitcoin ETF would track the Bitwise Bitcoin Total Return Index, seeking to capture the full value of an investment in bitcoin, inclusive of meaningful hard forks. The index is produced by Bitwise Index Services, LLC, as per the company’s source.

In a company’s filed amendment to its Bitcoin ETF S-1 form  on Wednesday, the firm listed BNY Mellon as administrator, transfer agent and ETF custodian. In addition, Foreside Fund Services has been appointed as the marketing agent and Cohen & Co. as an auditor. The company is yet to choose a bitcoin custodian for the trust its ETF would be built on, that would be held responsible for safeguarding the bitcoin owned by the Bitwise Bitcoin ETF Trust, the ETF that will in turn issue shares that trade on the NYSE Arca, which is subject to regulatory approval.

By Niranjan Patil
  • Market Data
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