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Bitwise Investments is anxiously waiting for October 13, which marks the deadline for the Securities and Exchange Commission (SEC) to decide the fate of its Bitcoin ETF fund. If the SEC approves the product, it would be the beginning of a new era in the world of digital currencies.
What happening in the market?
Bitcoin has been extremely volatile this year. After starting the year on disappointing lows, the currency gained momentum in the second quarter and hit its yearly highs in June when it touched the $11,000 mark. It stayed in a state of Euphoria for some time before crashing down by 20% in just one week. Now the currency has gone to its lowest levels since July this year as skepticism around the coin’s price is rising. Even with these issues, Bitcoin is still the best performing asset of the year with prices up by 123% year-to-date.
Bitwise is not the first company to try and launch a Bitcoin exchange-traded fund. Several others have been trying to woo the SEC for at least two years to become pioneers of the Bitcoin-derived asset industry. However, the authorities have only adopted a wishy-washy attitude towards these products. Deadlines get pushed constantly, and eventually, the offerings are turned down by the agency.
Bitwise is still positive
According to Bitwise managing director and global head of research, Matt Hougan, the firm is optimistic about its Bitcoin ETF proposal dubbed the Bitwise Bitcoin ETF Trust. Appearing on CNBC show ETF Edge, he said, “We’re closer than we’ve ever been before to get a bitcoin ETF approved. Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point.” He said that the company will decide its course of action only after the SEC says something about the product. Till then, he believes that it will be an exciting week for the company.
Cboe Global Markets, Winklevoss twins, SolidX and VanEck have already tried and failed to launch a Bitcoin ETF. Hougan said that the prospects for their proposal have improved over the years. He said that the Bitcoin market has changed drastically in the last two years. He also added that regulation and custody are two of the biggest concerns of the SEC, but they are slowly being resolved. Coinbase and Fidelity are providing this type of custodial solutions.