SEC Publishes a New Proposal by Bitwise Regarding Bitcoin ETFs


The SEC or The United States Securities and Exchange Commission has recommended a proposal from Bitwise advocating why the time is ripe for the world’s first Bitcoin ETF (Exchange Traded Fund).

This document by the San Francisco-based Bitwise was presented to SEC commissioners Robert Jackson, Hester Peirce, and Elad Roisman. Bitwise is a venture-backed Cryptocurrency index and fund provider

This proposal, coupled with Bakkt soon launching its Bitcoin exchange platform next week, is just what the crypto sector requires to build trust. Cryptocurrency dealers are eagerly awaiting it to be widely accepted into the mainstream financial market.

Though Bitcoin futures have been acknowledged globally, the ETF proposal is at the moment just a plea.

Why is the World Ready for a Bitcoin ETF?

The first argument is that the Bitcoin spot sector has grown and shown more efficiency. By showing the average deviation in prices in the ten real spot Bitcoin exchanges, you will notice that since December 2017, it has decreased significantly.

It is important to note that in 2017, there was a massive blow up in the cryptocurrency market. In addition, Bitcoin custody has become fully institutional and they have a solid regulatory structure backing them.

Why Bitcoin ETFs Can Be a Massive Win for Investors

Why would Bitcoin ETFs prove to be a massive market? This can be answered in a number of ways, mainly that is brought to the table a safer method for institutional investors to put money into the asset.

Most importantly, by investing in ETF, it doesn’t necessarily translate into a direct Bitcoin purchase. Rather, it is paying for a fund that is equal to the asset’s present value. By doing this, any investors that term buying into Cryptocurrency as being high risk business will not have any reason not to join.

But still, for Bitcoin exchange-traded funds to become a reality, they have to go through an approval process by the SEC. The reason why the SEC posted the proposal from Bitwise is to reply to the questions asked about the fund’s approval.

Matt Hougan, heading global research at Bitwise, stated in the proposal that today’s Bitcoin market has been evolving over the recent years. One proof of this is Bakkt’s futures being accepted by the SEC.

In addition, Hougan also quotes Jane Street and Fidelity as prime examples of spaces where regulated institutions offer first-rate superior services and insurance. If the Bitwise proposal is approved by the SEC, then the Bitcoin ETFs will be listed on the New York Stock Exchange.

Keep in mind that a decision must be made before or by October 14th. This decision will make them highly viable for both ordinary investors and institutions. To be clear, note that just because the SEC posted this proposal is not automatic approval.

They have just been sharing information regarding Bitwises’ proposal in the recent past. But it is important to note that the future of Bitcoin looks bright.

Get Daily Headlines

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

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide