• Sat. May 21st, 2022

Bitwise spot Bitcoin ETF: despite growing demand, SEC delays listing again

ByHazel R. Lang

Apr 24, 2022

The Securities and Exchange’s (SEC) relationship with spot Bitcoin ETF candidates continues to take interesting turns with this new development. But, the result remains constant: indefinite delay. An ETF is an investment vehicle that tracks the performance of a particular asset or group of assets. ETFs allow investors to effectively diversify their portfolios without directly holding the assets.

Now, a spot ETH, unlike its futures counterpart, would incorporate ownership of a cryptocurrency.

Different inputs, same output

The US SEC has extended until July 1 the deadline to decide whether to approve Bitwise Bitcoin ETP Trust listing on Nasdaq. Wu Blockchain, a famous media had Underline said development in a tweet on April 24. Perhaps the SEC has denied or extended all Bitcoin spot ETF applications. The judgment quoted:

“The Commission believes that it is appropriate to designate a longer period of time to issue an order approving or disapproving the proposed rule change. In order to allow sufficient time to consider the proposed rule change and the issues raised in the comments that have been submitted in this regard.

Unfortunately, this was not the first time the applicant faced a delay. Earlier in February this year, the fund Bitwise Asset Management faced the same situation.

You are not tired ?

Indeed no. A renowned asset manager, Grayscale has filed a new appeal with the SEC to turn its Grayscale Bitcoin Trust into an exchange-traded fund (ETF).

Despite the same result in the past, the asset manager remains unfazed ahead of the July deadline. Well, mainly because the demand for a physically backed BTC ETF is on the rise. Investors in all 50 states owned GBTC, with approximately 800,000 accounts in the United States. According to the compant itself, the statistic amounted to:

Source: GBTC

Well, according to Ycharts, the same has seen a steep decline lately. Grayscale’s Bitcoin Trust has been trading at a massive discount in recent months amid market speculation and uncertainty. At the time of writing, the GBTC fund was trading at a discount of 23.29%.

Source: Ycharts

An endorsement would cease said discounted price tag or leave in this case. Still, despite the July deadline, things don’t look too promising for said app. Additionally, the SEC had rejected spot Bitcoin ETFs from several issuers in recent months, including Fidelity, SkyBridge, and Valkyrie. This was all aimed at providing easy exposure to digital currency.

Meanwhile, two Bitcoin futures-based funds, the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF debuted on Wall Street in October.



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