The Bitwise bitcoin ETF was delayed for another five weeks in a statement from the U.S. Securities Exchange Commission. So far, it seems the Commission remains unconvinced that bitcoin is sufficiently resistant to price manipulation, along with a host of other concerns.
Following a May 7 amendment to Bitwise’s bitcoin ETF application, the Securities Exchange Commission (SEC) has delayed making a decision for another five weeks to solicit comments from the public. Thus far, the application has garnered 25 comments.
Those interested in commenting on the proposal may submit their comments here.
Status of crypto-based investment products
First filed in January of this year, Bitwise continues to tweak its application to list shares of its bitcoin exchange-traded fund (ETF) on the NYSE Arca—a subsidiary of the NYSE Group which lists stocks and options.
However, the SEC, for a second time, has delayed ruling on the application. Previously, the Commission expressed reservations about bitcoin and cryptocurrency-based investment products, such as ETFs. CBOE is facing similar difficulties with its Van Eck SolidX Bitcoin ETF; the exchange resubmitted its application in January after withdrawing it that same month.
According to Bitwise, the ETF will satisfy the rules of the NYSE Arca, providing evidence that the ETF will be accurately priced, resistant to price manipulation, and adequately bitcoin-backed.
Yet, the SEC remains unconvinced that these ETFs can meet federal guidelines for national securities exchanges. Notably, that these exchanges are able to “prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest” when it comes to these new bitcoin-based investment products.
Dalia Blass, director of the division of investment and management at the SEC,