More

    Bitwise “Committed” to Bitcoin ETF, Sends a Letter to SEC about Significant Retail Demand for BTC

    • A Bitcoin ETF to provide investors exposure to BTC in a regulated manner
    • Charles Schwab’s study shows millennials growing interest in BTC
    • Most popular crypto app has 30 million accounts, more than Charles Schwab, TD Ameritrade, and E*Trade’s combined
    • But these Bitcoin access avenues have high fees, limited disclosures, & security risk

    in response to their decision to disapprove the proposed rule change to list and trade shares of the Bitwise Bitcoin ETF Trust under NYSE Arca Rule.

    Though the company is disappointed with the Staff’s decision, it is not giving up and aims to provide additional context to review Staff’s decision.

    “Bitwise is committed to creating a bitcoin ETF that provides all investors with the ability to

    access bitcoin in a regulated and familiar fund format with the transparent and robust disclosures required by the federal securities laws.”

    Such an ETF, it said would provide protection for the current millions of US investors using other avenues to access BTC market.

    Meeting SEC’s Requirements for an ETF

    Bitwise in its letter dated Dec. 18, reiterates that two requirements found by the Staff in terms of the bitcoin market being resistant to market manipulation and fraudulent activity and that the listing exchange has entered into a surveillance sharing agreement with a regulated market of significant size are satisfied by BTC market.

    Because the BTC price is set in the open market, Bitwise argues it is resistant to the kind of market manipulation scandals that occurred in markets that rely on coordinated fix pricing. Bitcoin’s inherent fungibility and the market’s distributed nature allows for effective arbitrage that it said helped insulate bitcoin from attempts to manipulate individual markets.

    As for the market to be need to be resistant to a comprehensive set of market manipulation vectors to qualify, “This is a standard that, historically, even the most well-regulated, arbitraged, and liquid markets, such as the U.S. equity index options market, have not met.”

    Bitwise’s research also pointed out that CME bitcoin futures — the largest US bitcoin market by notional volume — is a regulated market of significant size.

    Why Does A Bitcoin even ETF Matter?

    But why exactly the market needs a Bitcoin ETF? Bitwise notes that a large number of US investors are investing in Bitcoin but they need to do so in a safe and efficient manner.

    The company illustrated Charles Schwab’s recent study that showed Grayscale Bitcoin Trust is the fifth largest holding in millennial retirement accounts, ahead of companies like Berkshire Hathaway, Walt Disney, and Microsoft.

    GBTC it said is the only tool that retail investors can access Bitcoin through a traditional brokerage account. However, it’s ability to offer high-fidelity exposure to BTC is limited. Also, it is traded on the secondary market at a premium to its net asset value (NAV) as high as 140%.

    Another primary means for retail investors for accessing bitcoin is via crypto apps. Coinbase is once such incredibly popular one that has 30 million accounts, more than the number of active brokerage accounts at Charles Schwab, TD Ameritrade, and E*Trade combined. But they have their own challenges in terms of high fees, limited disclosures, and security risk.

    “Our goal is to demonstrate that there is significant retail demand for bitcoin exposure, and to note that this demand is currently forced into products that forgo the protections and disclosure requirements that would be required of an ETF.”

    Live Bitcoin (BTC) Price:

    1 BTC/USD =$6,120.4642 change ~ -2.36%

    Coin Market Cap

    $111.96 Billion

    24 Hour Volume

    $5.37 Billion

    24 Hour VWAP

    $6.2 K

    24 Hour Change

    $-144.3537

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy
    AnTy
    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,350FansLike
    2,770FollowersFollow
    4,133FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Bitwise Plans To Target Retail Investors With Its Crypto Index Fund

    Bitwise has revealed that plans are underway to allow the retail market to participate in its large-cap index service. According to CoinDesk, Bitwise is working...

    Binance's Educational Platform Opens Up Government Approved Office in Shanghai

    Binance, one of the most popular crypto exchanges in the crypto-verse which also has many subsidiaries including Binance Academy (a blockchain and crypto-centred educational...

    XRP Trying to Retrace Months of Underperformance But Remains in a “Corrective” Structure

    XRP is up 12.5% but could still jump another 23%, A clean break above $0.21 would be “very bullish” Ripple granted an exemption...

    23k BTC on CME Futures and 50k BTC in Options Expiring Today

    Bitcoin is currently down 0.05% in the past 24 hours trading around $6,640 after hitting $6,872 last night, yet again rejected at $7,000 level....

    Microsoft Files Patent To Mine Cryptocurrencies With Verified Body Activity Data

    Giant software manufacturer, Microsoft is seeking to capitalize on the new crypto hype. The firm is seeking to introduce its own cryptocurrency that will...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.