Bitcoin

Bitwise: 2019 Will Be The Year A Bitcoin ETF Gets Approved

Bitwise 2019 Will Be The Year A Bitcoin ETF Gets Approved

The crypto asset management firm Bitwise files for yet another bitcoin ETF proposal for Security and Exchange Commision (SEC) to review. The new proposal is fully compliant with the SEC’s regulatory guidelines.

What do we know about a bitcoin ETFs so far?

Exchanges have tried to make the dream of a bitcoin Exchange Traded Fund (ETF) reality, but no one has succeeded so far. The SEC has rejected all earlier attempts since the ETFs did not meet the regulatory framework among other reasons. According to the CEO of the crypto start-up Abra, SEC will not approve an ETF because it does not fit the industry norm.

The SEC will approve, postpone or rejecting the ETF from VanEck and SolidX by February. However, The SEC commissioner Hester Pierce argued that an ETF could be approved tomorrow or it could take years. Lawyers are not very positive either. Jake Chervinsky, a lawyer at the Kobre and Kim law firm, suggested that it will not be approved. Chervinsky stated that the exchange-traded product as a concept is currently ”in trouble.” He expanded on the issue, arguing that the cryptocurrency market might not be ready for an ETF as of yet. The most recent statement from a lawyer was that an ETF would most likely not be accepted even though the US government is shut down.

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Will the SEC approve a bitcoin ETF during 2019?

Not all are negative regarding the approval of a bitcoin ETF. The Winklevoss twins recently said that they are still committed to the creation of an ETF and will not give up. They even said that bitcoin could surpass $7 trillion which is the current market valuation of gold.  

Bitwise is also committed to an ETF. They announced on the 10th of January that it is seeking to launch a physically held Bitcoin ETF. For this purpose, it has filed an initial registration statement on Form S-1 with the SEC.

Bitwise Asset Management is a leading provider of the crypto asset index and beta funds. The proposed Bitwise Bitcoin ETF would track the Bitwise Bitcoin Total Return Index. They will seek to capture the full value of an investment in bitcoin. Bitwise state the proposed ETF differs from previously filed proposed bitcoin ETFs. It will rely on regulated third-party custodians to hold its physical bitcoin.

The proposed listing exchange is the New York Stock Exchange (NYSE). They will apply to list shares of the Bitwise Bitcoin ETF under a ticker symbol. They will determine the ticker at a later date. Bitwise expects the NYSE to file a so-called “Rule 19b-4” request with the SEC in the coming days. They will request necessary NYSE rule changes to allow its application to be approved. The ETF will list once the registration statement is declared effective by the SEC.

“While there can be no assurance that the SEC will accept the 19b-4 application, the SEC will review and ultimately accelerate the registration statement. We are optimistic that 2019 should be the year that a bitcoin ETF launches,” said John Hyland, Global Head of Exchange-Traded Funds for Bitwise.

Mr Hyland is very positive and added:

“We believe the crypto trading ecosystem has evolved in significant ways in the past year,” further stated Mr Hyland. “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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Ledger Nano S - The secure hardware wallet