SEC Initiates Review of Bitwise’s Spot Bitcoin ETF Application

• Bitwise initially filed a spot Bitcoin ETF application in October 2021, but revised and resubmitted it on June 28th of this year.
• SEC’s acceptance of this spot Bitcoin ETF application indicates that the review process has commenced and there are no deficiencies in the filing.
• Matthew Hougan, Chief Investment Officer at Bitwise, emphasized the significance of BlackRock’s move.

The U.S. Securities and Exchange Commission (SEC) has accepted and begun reviewing Bitwise’s spot Bitcoin ETF application.

SEC Reviews Bitwise’s Application

The SEC has officially accepted Bitwise’s spot Bitcoin ETF application for review. The San Francisco-based digital asset manager originally filed a spot Bitcoin ETF application in October 2021 but revised and resubmitted it on June 28th of this year.

The SEC stated the following about the ETF application:

“The proposed rule change to list and trade shares of the Bitwise Bitcoin ETP Trust under NYSE Arca Rule 8.201-E has been filed.”

Some media outlets shared information about the approval of Bitwise’s spot Bitcoin ETF, but the information was incomplete; the ETF has not been approved yet. The acceptance of Bitwise’s spot Bitcoin ETF application by the SEC indicates that the review process has begun and there are no deficiencies in the filing.

Bitwise’s application joins a series of institutional applications, including BlackRock’s spot Bitcoin ETF application filed on June 15th.

Bitwise Following BlackRock’s Lead

Regarding the resubmission, Matthew Hougan, Chief Investment Officer at Bitwise, stated:

“When the world’s largest ETF issuer, BlackRock, enters the market, it’s something you pay attention to because they’re very thoughtful and connected. To say it’s an important sign would be an understatement.”

Hougan mentioned that he could not provide detailed information about a specific custody-sharing arrangement for Bitwise’s ETF. He added, “The most successful spot Bitcoin ETF application will require multiple pieces of analysis. Those include analysis that focuses on the CME market and custody-sharing arrangements are an interesting idea. But Bitwise will take a more comprehensive approach.”

Recently, BlackRock, Fidelity, Invesco, WisdomTree, VanEck, Ark Invest, Valkyrie, and Bitwise Asset Management have resubmitted applications for a spot Bitcoin ETF. These firms collectively manage assets worth approximately $15.39 trillion.