Cryptocurrency asset management company Bitwise Asset Management has filed a new application for a bitcoin exchange-traded fund (ETF). In a statement, the company also said that the US Securities and Exchange Commission (SEC) must issue its decision within 45-90 days, whether approval, disapproval or other procedures.
The application has been published by the New York Stock Exchange but has not yet been reviewed by the SEC, so it is not known when a decision will be made. Notably, Bitwise's previous application for a bitcoin spot exchange fund was rejected by the SEC in June 2022.
In 2022, the SEC stated that Bitwise had failed to provide sufficient evidence of safeguards against market manipulation and adequate market size. However, the regulator hinted that future applications could meet such criteria, which Bitwise attempted to demonstrate in its latest application.
Following that, on June 15, BlackRock, a major asset management corporation, submitted an application for a spot bitcoin-ETF.
The US Securities and Exchange Commission has yet to authorise any spot bitcoin-ETF, rejecting several other applications in both the cryptocurrency and financial sectors.
Nevertheless, the move by BlackRock, the world's largest asset manager, signals the willingness of institutional players to invest in cryptocurrency instruments and could fundamentally change the digital asset market by providing easy access for investors.
It seems likely that both companies' plans will be rejected with inevitability. In the past, the SEC has almost never rejected BlackRock's applications and has recognised several futures bitcoin funds. On the other hand, there are still no spot bitcoin funds on the market.
Since the SEC has not specified a timeframe for reviewing these applications, and it might take some time, plus they are now busy with litigation with Binance and Coinbase, we cannot expect a positive decision from them in the near term.
