Last month, the Securities and Exchange Commission turned back Bitwise Asset Management's proposal to launch the Bitwise Bitcoin ETF Trust, but the commission is reviewing that decision.
In turning back the Bitwise Bitcoin ETF proposal, the SEC cited familiar concerns about market manipulation in the bitcoin space and the effects a proposed exchange rule change that would pave the way for bitcoin funds.
“This order disapproves the proposed rule change, as modified by Amendment No. 1. Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment,” the commission said in October.
Why It's Important For Bitcoin ETFs
The SEC taking a second look at the Bitwise Bitcoin ETF effort, which was one of the stronger pitches in a batch of ETF efforts linked to the largest digital currency, doesn't necessarily guarantee approval, but it can be seen as a step in the right direction.
“On October 9, 2019, the Division of Trading and Markets, pursuant to delegated authority, issued an order disapproving the proposed rule change, as modified by Amendment No. 1,” the SEC said on Monday.
“On October 15, 2019, the Secretary of the Commission notified NYSE Arca that, pursuant to Commission Rule of Practice 431, the Commission would review the Division's action pursuant to delegated authority and that the Division's action pursuant to delegated authority had been automatically stayed.”
The SEC said interested parties have until Dec. 18 to express support for or comment against the bitcoin ETF proposal.
Bitwise currently offers several crypto-based funds in mutual fund form including the Bitwise Bitcoin Fund, Bitwise Ethereum Fund and the Bitwise 10 Private Index Fund.
News of the SEC reviewing the Bitwise Bitcoin ETF Trust effort comes just days after noted bitcoin bull Fundstrat analyst Tom Lee said the digital asset would need to soar to $150,000 to make an ETF practicable.
The largest digital currency by market value resides around $8,400 at this writing.