Bitwise Aspires to Lead the Charge in ETFs
11 January 2019 - 5:33AM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
January 10, 2019 -- ADVFN Crypto NewsWire -- Last August, the SEC
rejected nine Bitcoin ETF proposals, citing the idea that under the
existing Exchange Act, the agencies involved in these ETFs had not
done enough to mitigate against fraud and other illicit acts. To
this, they added that the exchanges involved had also not even
established adequate rules related to the prevention of these
issues.
Over the course of the second half
of 2018, it seemed as if nothing would change related to ETF
approvals. Time and time again, we heard news that seemed to
indicate the drafting of a promising proposal and time and time
again, we were disappointed by another SEC delay or
rejection.
Then came 2019. More specifically,
today, CoinDesk broke the news that all of this could be about to
change due to the work of a company called Bitwise. According to
the piece in question, Bitwise is reasonably confident that they
have the answer to the SEC’s regulatory concerns with their new ETF
proposal. Why they feel this way boils down to how the crypto
involved in their ETF will be stored, versus how the crypto
involved in all of the past ETFs would have been stored.
Concretely, the difference between
Bitwise’s ETF and all of the rest thus far is quite
straightforward. Reportedly, Bitwise will have what are called
“regulated third-party custodians” store Bitcoins directly in the
ETF. Therefore, to believe that this is truly a point of
differentiation, we have to also believe that no other ETF proposal
has mentioned this, as of yet.
Given that Bitwise has been waiting
out all of the other ETF bids and structuring theirs in response to
how the SEC has reacted to them over time, their reasoning seems
likely to be true. Since the first step of their proposal has
already been filed, over the next few months, we will truly be able
to see what comes of it.
By: BGN Editorial Staff
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From May 2023 to May 2024