Another Crypto Company Filled Application for Bitcoin ETF
Two US companies — Bitwise and the NYSE — have submitted an application to the SEC to create a Bitcoin ETF. But because of the US government shutdown, the regulator did not even notice it.
In early January, Bitwise announced its intention to create a Bitcoin ETF and submitted the documents to the SEC. But the application did not appear on the website of the regulator, possibly due to the recent governmental shutdown.
However, the text of the document is posted on the NYSE website. It gives the understanding of what exactly the companies offer. So, unlike similar applications, the NYSE and Bitwise are going to use a regulated third-party who will provide custodial services to a potential BTC ETF and will store bitcoins. To determine the price of the crypto derivative, companies will collect data from different exchanges. Both BTC spot prices and cryptocurrency futures contracts with physical delivery will be taken into account.
According to Bitwise, such conditions will help in fighting manipulations in the cryptocurrency market. SEC rejected previous application citing market immaturity and manipulation risks.
- Last week, VanEck and SolidX withdrew their bid to create a BTC ETF. According to VanEck, the US government shutdown is to blame. VanEck promised to submit another application after the resumption of work.