Bitwise wanted to be a competitor to Bakkt-ETF-offer. For now, the project needs to be placed after the cancellation of the SEC ad acta.
Bitwise fails with Bakkt Alternative in the ETF market
The launched offer of Bakkt to Bitcoin Futures had long been expected. After the product was since September of 2019 is finally available for trading, did not, as many observers hoped-for acute success. However, there are many analysts who believe that nevertheless, with a growing popularity on the part of investors. As the saying goes: Good things come to those that wait. The provider Bitwise, since it was a long time as a great competitor for the ETF product. Meanwhile, it became known last month that the ETF Alternative from the home VanEck/SolidX will not come. The reason is that The providers have withdrawn their application. Bitwise has not planned even the withdrawal of the project. The US regulator, the SEC has announced the rejection.
In the U.S., has too many concerns around the ETF application
Some Analyst had expected that the project will fail. Because it had repeatedly given shifts. But the Securities and Exchange Commission in the USA would be the trigger of other problems, was not for any observer is obvious. Now, however, the authority has ensured, for the time being the situation is clear. The ETF-the request of the service provider Bitwise was not final for official rejection. So that is the Plan of the company Bitwise Asset Management is (was planned for an introduction in the context of the NYSE Arca) on ice. In the beginning of this year, the request was made. Now, the SEC explained that it had significant concerns around the market start. The main arguments are not Ensure, among other things, that the project needs the legislature meets. The Commission of the SEC with shares currently that fears of possible tampering led to the crypto market to the rejection.
Bitwise announces early re-application
The applicant has not been able to disprove, why continue to critique applicable, the applicable stock exchange act exists. Totally unexpected, the cancellation is not to the product however. Bitwise had expressed Concerns were unfounded because of the connection of the planned Futures with the normal Bitcoin trading and crypto market as a whole. The result is that the company terminates its plans. Instead, the operator is to inform, to evaluate the rules, and criticism is positive in the sense of the new market. A new application is to as quickly as possible. A date but the company is not known. Overall, there is now a proposal from Wilshire, Phoenix, and NYSE Arca, the may get soon after a test, the green light from the authority. The BTC price has not responded negatively to the decision.
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