SEC has pushed forward its conclusion on the Bitwise Application stating the significance for more data on essential matters. The Securities and Exchange Commission (SEC) has declined the approval of the Bitcoin Exchange Traded Fund (ETF) application.
The agency has signified its concern regarding the Bitwise Bitcoin ETF Trusts liquidity as well as transparency and has asked that more light be shed on the suitability of Bitcoin as a potential asset for the funds.
SEC Requests For Feedbacks On Bitwise ETF Application
According to records, the SEC was delaying its decision due to the fact that it requires more time to acquire information as regards the application.
The SEC is asking for information on the anticipated trading volume, suggestions on how the ETF wants to safeguard the investors from fraudulent encounters and manipulative attempts, as well as other significant matters in relation to the application.
Bitwise has been given 21 days to answer the commission’s demand for information. It is worthy to note that this will be the second time that the top-tier regulator would have to postpone its final verdict on the Bitwise ETF Application.
The decision had initially been postponed in December before it was again postponed on February 1st. According to Jake Chervinsky of Blockchain Association, the recent date for Gary Gensler’s led Commission is August 14th. However, it could possibly still be delayed once more to a conclusive deadline of October 13th.
Recent Delay Shows SEC Still Lacks Conviction Regarding Bitcoin Spots ETF
The SEC affiliated with Gary Gensler has only confirmed Bitcoin Futures ETF and has held that spot ETF applications expose investors to possible fraud as well as manipulation, an occurrence it is trying to prevent.
SEC Has Rejected Several ETFs
This has fueled SEC’s decision to either postpone or decline its various Bitcoin Spot ETF applications. For instance, Kryptoin and Valkyrie witnessed their Bitcoin spot ETF applications get rejected in December on the basis of the above reasons.
Apart from this, the agency has also postponed its decision regarding GrayScale’s application. Meanwhile, Bitcoin futures ETFs just like Valkyrie (BTF), ProShares, and Van Eck (XBTF), got approval from the Commission in the previous year.
Due to this, several members in the crypto world have hopes that the Sec will most likely approve of a Bitcoin Spot ETF soon.