A recent report has revealed that the U.S top financial watchdog, the SEC has pushed forward its decision as regards approving or disapproving a Bitcoin exchange-traded fund (ETF) proposed by San Francisco-based crypto startup, Bitwise.
A previous report revealed that Bitwise Asset Management along with NYSE Arca, an Intercontinental Exchange (ICE)-owned firm filed for the registration of a Bitcoin ETF early this year. Right after the SEC made it known that a review of the application has started.
According to the SEC rules, the agency has 45 days to announce its approval, rejection or the extension of the proposal. With the watchdog announcing the extension, the approval or rejection which is originally set for April 1 has been shifted to Mid-May. It is important to note that the regulator has the power postpone the date again simply because it has up to 240 days from the time the application was first filed to make a final decision on the ETF.
If approved the ETF proposal will see NYSE Arca, which focuses on trading stocks and options rather than large-cap stocks traded on the New York Stock Exchange, list the Bitcoin ETF, while Bitwise Index Services will produce and manage the bitcoin ETF.
Bitwise is reported of the notion that its ETF is likely to get approved simply because its application is unique compared to what is being submitted by others seeking the same things. Bitwise also made it know that in its ETF version, holdings will be safeguarded in a cold storage solution with its holdings in a cold storage solution with a regulated third-party custodian. Data from several top-ranking crypto exchanges will also be used to draw its index.
John Hyland, Bitwise’s global head of ETFs, confirmed this in a press release back in January:
Having a regulated bank or trust company hold physical assets of a fund have been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with bitcoin.
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