Bitwise Joins SEC Exchange-Traded Fund Race for Crypto
Based in San Francisco, a hub of crypto-blockchain companies and development, Bitwise has joined in on attempting to launch their own regulated exchange-traded fund for digital currencies that could aid Bitcoin and its struggle with prices should the ETF be approved by the SEC.
Handing over their application the United States SEC on the 24th of July, Bitwise has filed for an ETF that would monitor ten different digital currencies with Bitcoin included in the “basket.” The SEC has not approved of any ETF cryptocurrencies until now, however, there are talks going around that imply a possible approval of VanEck’s and SolidX’s applications within a month or so was a significant contributor to the surge in Bitcoin price to $8K throughout this week.
Director of research at Bitwise, Matt Hougan, spoke during an interview, stating that the company is hopping on board and that the crypto-market is advancing in a way that will give the SEC what it needs to approve a cryptocurrency exchange-traded fund. ETF’s are regularly tracked and can be traded just like stocks. Although each of the companies has applied strictly for Bitcoin ETF’s, Bitwise is currently the only one to apply for a total of ten different coins.
The United States Securities and Exchange Commission denied the Winklevoss brothers their application last year and soon followed with the further rejection of VanEck and SolidX prior to both companies collaborating and handing in a new application last month which is currently under review with the SEC.
In November of 2017, Bitwise launched its own index fund although it did not register with the regulatory watchdog. The index itself is meant for elite-investors with a minimum of one million USD in fiat currency.Due to never-ending cases of fraud and scams, regulators in the US have shown concerns in approving BTC exchange-traded funds.