On June 16th, Bitwise Asset Management submitted a new application to amend the proposed rules for a Bitcoin-linked Exchange-Traded Fund (ETF). Previously, the U.S. Securities and Exchange Commission (SEC) rejected Bitwise’s previous ETF application in June 2022 due to concerns about insufficient market surveillance and protection against market manipulation, as well as Bitwise’s ability to demonstrate the size of the Bitcoin-linked market. However, the SEC indicated that future applications may meet these requirements.
In its new application, Bitwise requests the SEC’s approval, denial, or initiation of alternative proceedings regarding the proposed rule changes within 45 to 90 days. The application is filed by the New York Stock Exchange (NYSE), but the specific timeline for the SEC’s final approval is unclear.
This application follows a similar request submitted by BlackRock on June 15th. This request raised optimism due to the rarity of the SEC rejecting ETF applications from BlackRock. However, experts believe the chances of success for this request are slim.
So far, the SEC has not approved any Bitcoin-linked ETFs and has rejected numerous similar applications. Matthew Hougan, the CEO of Bitwise, acknowledges this situation and believes that the United States will ultimately approve a Bitcoin-linked ETF. However, he pointed out that there is no clear “path forward” for companies seeking to offer such funds.