According to January 14, 2020, form filed with the U.S. Securities and Exchange Commission (SEC), Bitwise Asset Management has officially withdrawn its application for a Bitcoin (BTC) exchange-traded fund.
Reasons for Withdrawal Unclear
In what comes as a major jolt to the long-standing dream of the cryptocurrency community of a BTC ETF, major crypto-asset firm Bitwise has withdrawn its application filed with the U.S. SEC seeking to launch a Bitcoin ETF.
The official SEC filing reads in part:
“At this time, the Registrant has determined not to pursue the registration and sale of the securities covered by the Registration Statement. The Registrant believes that this withdrawal request is consistent with the public interest and protection of investors as required by Rule 477(a) of the Act and represents, in accordance with Rule 477(c) of the Act, that there has been no issuance, distribution or sale of the securities under the Registration Statement.”
Timeline Until Now
Bitwise first filed for a Bitcoin ETF in January 2019. Interestingly, in March 2019, the firm released a controversial report that posited that close to 95 percent of the global cryptocurrency trading volume is fabricated. Evidently, this finding didn’t sit too well with the U.S.’s financial watchdog which continues to remain skeptic towards the idea of a Bitcoin ETF.
Subsequently, in October 2019, the SEC rejected Bitwise’s ambitious application for a Bitcoin ETF stating that cryptocurrencies are still very much susceptible to forged trading and market manipulation. As a respite, however, in November 2019, the SEC decided to review its decision which gave a slight glimmer of hope to Bitcoin ETF enthusiasts across the globe.
However, with Bitwise now having withdrawn its ETF application, speculations are rife on the Internet with regard to the possible reasons for the firm’s unanticipated move. It becomes all the more interesting considering that in October 2019, Bitwise Head of Research had displayed a fair amount of confidence in an incoming Bitcoin ETF sometime soon.
Will 2020 Witness a Bitcoin ETF?
The talks of Bitcoin ETF have, over time, become a running meme within the cryptocurrency industry. The long-wait for a Bitcoin ETF has seemingly made the fund somewhat of a distant dream that doesn’t look likely to be realized anytime soon.
BTCManager reported in September 2019 how the CboE had withdrawn the application for VanEck SolidX Bitcoin ETF – a move that surprised the cryptocurrency community across the world.