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SEC Reconsiders Bitwise’s ETF Proposal

United States Securities and Exchange Commission is poised to review the Bitcoin ETF proposal from Bitwise for the second time.

Last week, it rejected the company’s proposal on October 9. But, in a letter sent it sent to the ICE, the SEC wants to take a second look at the proposal.

In the meantime, the SEC also wants to evaluate a new rule for the license of a different kind of Bitcoin ETF.

The letter explains that it will try to review the earlier rejected proposal for ETF to find out whether the company has met the requirements for acceptance.

With this new review, the rejection order filed by SEC on October 9 will still be in force until the commission completes its second review.

In the letter, the commission noted that it would inform the exchange firm of its decision whenever it takes action on the second review.

Discussions have been going on for a while

Before the first rejection, Bitwise and the ICE have been discussing the Bitcoin ETF proposal for some time now.

SEC reiterated that it did not reject the proposal because of the utility value of blockchain technology or bitcoin. It did not consider the utility value either as an investment or an innovation.

However, SEC has taken similar actions in the past. Last year, it also rejected three proposals for nine different Bitcoin ETFs.

Apart from its job to review the present proposal from Bitwise, the commission is also looking into a rule change proposed by NYSE Arca.

The Arca exchange is proposing to trade shares of the U.S Bitcoin and investment trust fund.

SEC’s review and evaluation of these exchange companies show that the commission is being careful not to allow crypto trades that will affect the current crypto market.

While being careful, it still wants to ensure that exchanges and other stakeholders in the industry are allowed to grow.

On June 12, SEC received the proposal for the amendments. On October 4, SEC also received a second amendment for the proposal.

The commission then forwarded the proposal details to the Federal Register and solicited for reactions from the public.

The contents of the second amendment revealed that the trust would trade only on U.S Treasury securities and Bitcoins.

The trust will also hold US dollars until the one-year maturity of the short term treasury certificates.

Fingers crossed as SEC reviews proposal

As the review is going on, some stakeholders believe that SEC may likely approve the Bitcoin ETF proposal from Bitwise this time.

If this happens, it means that Bitwise has broken a barer to become the first company to receive approval for the Bitcoin ETF trade in a long while.

After the review, SEC will now announce whether it has accepted or rejected Bitwise’s proposal, and the public is keenly waiting on this news.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.