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In a exceptional improvement for the crypto ecosystem, the United States Securities and Exchange Commission (SEC) has acknowledged Bitwise’s utility for a spot Bitcoin Exchange Traded Fund (ETF) product.

JUST IN – The SEC formally acknowledges Bitwise’s spot #Bitcoin ETF utility 👀 pic.twitter.com/XXWOybjYxb

— Bitcoin Magazine (@BitcoinMagazine) July 13, 2023

Significance of SEC’s Acknowledgement

The SEC’s acknowledgment of the Bitwise spot Bitcoin ETF utility is essential for the cryptocurrency trade as a result of it strikes the potential of a regulated Bitcoin ETF nearer to actuality.

Over the previous few years, a number of Bitcoin ETF proposals have been submitted to the markets regulator, however they’ve confronted repeated rejections because of issues about market manipulation and custody of the underlying belongings. The present recognition implies that the regulator considers the Bitwise spot Bitcoin ETF utility to be sufficiently full and worthy of additional consideration. However, it is very important word that the SEC has not but accepted the ETF. 

The regulator will now provoke a proper evaluation course of, which features a thorough examination of the proposal and a chance for public remark. If the Bitwise spot Bitcoin ETF is accepted, it can give particular person buyers a extra accessible and safe different to put money into Bitcoin. 

Currently, people who need publicity to Bitcoin should navigate the complicated world of crypto exchanges or go for different funding autos resembling Bitcoin Trusts or futures contracts.

Bitwise Renewed Commitment for Bitcoin ETF

Bitwise re-filed its utility for spot Bitcoin ETF in June following a bunch of functions fueled by famend asset supervisor BlackRock. This submitting signifies Bitwise’s dedication to pursuing the ETF approval course of and signifies its ongoing efforts to satisfy regulatory necessities.

At the time of its initial filing, Bitwise’s Chief Investment Officer, Matthew Hougan highlighted that the SEC’s rejection of earlier Bitcoin ETF functions by the SEC was accompanied by detailed memos outlining the regulator’s issues in regards to the Bitcoin ecosystem. 

These issues have primarily revolved round points resembling market manipulation, custody of underlying belongings, investor safety, and general market integrity. 

However, Bitwise expressed confidence within the SEC’s potential to approve its utility primarily based on the truth that the Chicago Mercantile Exchange (CME) now meets the SEC’s necessities and offers a clear and controlled platform for Bitcoin futures buying and selling.

Benjamin Godfrey is a blockchain fanatic and journalists who relish writing about the true life functions of blockchain expertise and improvements to drive basic acceptance and worldwide integration of the rising expertise. His wishes to coach individuals about cryptocurrencies conjures up his contributions to famend blockchain primarily based media and websites. Benjamin Godfrey is a lover of sports activities and agriculture. Follow him on Twitter, Linkedin

The offered content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty to your private monetary loss.