After 8 long months of waiting and postponements, the Securities and Exchange Commission (SEC) has carefully examined the proposal filed on February 11th by Bitwise Asset Management and decided that there will be no green light for an ETF on Bitcoin to be issued by the company.
According to the SEC, there is a lack of infrastructure that would guarantee safe custody without any kind of risk, and the manipulation of a very volatile market has certainly not provided an incentive for the regulator to approve the ETF on Bitcoin.
The document initially submitted by Bitwise Asset Management was registered on February 11th, 2019. Since that day, several scenarios have been presented with numerous SEC postponements, and some companies have also decided to withdraw their proposal.
This was the case of VanEck and SolidX: on September 17th the two companies specialised in investment funds and development of blockchain technology, decided to stay away from what, most likely, would have occurred as a negative event because the common idea was that the SEC would give a “No” to their proposal for an ETF on Bitcoin.
A few days ago, Matt Hougan, the director of Bitwise Asset Management, talking to the CNBC said:
“We’re closer than we’ve ever been before to getting a Bitcoin ETF approved. Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point. We will hear clearly between now and Monday what they think.”
He then continued, referring to the custodial services now on the market:
“Two years ago, there were no regulated, insured custodians in the Bitcoin market. Today, there are big names like Fidelity and CoinBase with hundreds of millions of dollars of insurance from firms like Lloyd’s of London.”
Despite Hougan’s optimism and the thoughts of the community, which has been waiting for a long time for such an event to occur and bring strong liquidity to the market, the SEC has decided not to approve Bitwise’s ETF on Bitcoin.
At this time bitcoin (BTC) is worth $8000 and is down 1% compared to the previous 24 hours. It remains to be seen how the market will react to this news in the next few hours hoping that in the future situations of this type can be settled in a completely different way.