NYSE Arca Files Documentation Seeking Bitwise Bitcoin ETF Approval

According to reports, fresh details have come to light regarding the Bitcoin (BTC) ETF (exchange-traded fund) proposed by NYSE Arca and Bitwise. It should be recalled that earlier in the month Bitwise Asset Management revealed plans to launch a Bitcoin ETF (that if approved will be the first Bitcoin exchange-traded fund to enter the U.S market).

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Government Shutdown Delaying Any Possible SEC Approval

At the time the plans for a Bitcoin ETF came to light, Bitwise was said NYSE Arca would initiate the 19b-4 rule change proposal shortly after. NYSE Arca filed the form on the said day, but it isn’t listed on any of the SEC websites which can solely be blamed on the ongoing government shutdown in the United States.

As a result of this situation, the document went unnoticed since it was filed despite being published on NYSE Arca’s website. When asked for comments regarding the delay, an SEC spokesperson didn’t immediately respond.

Bitwise: Plan to Launch Bitcoin ETF Different From Previous Attempts

When Bitwise initially announced its ETF proposal, the company declared that it was different from previous ETF approval efforts due to the fact that a regulated third-party custodians will be allowed to store the Bitcoin. Additionally, the company also revealed that it would draw price data from a vast number of exchanges, to calculate the index when determining the value of the asset.

The filed proposal issued by NYSE Arca elaborates on the methodology. For example, the price will be “weighted to the point that the Bitcoin (BTC) price from exchanges with a better amount of the trade volume in hour before are weighted more heavily than the Bitcoin price from exchanges that have lesser volume.”

“The Exchange believes the proposed rule alteration is designed to prevent any fraudulent and manipulative practice in a bid to protect investors and the interest of the public.”

In previous Bitcoin ETF rejections, the Securities and Exchange Commission has cited concerns over market manipulation as a reason for its decision. NYSE Arca’s proposal regarding a Bitcoin ETF also touched concerns about the type of impact such manipulation may have on the Bitcoin (BTC) market.

Previous Bitcoin ETF Proposals Have Been Rejected in as Many Months

While NYSE Arca has since filed the ETF proposal, the clock hasn’t started to count for its approval or rejection. However, Attorney Jake Chervinsky, with Kobre Kim law firm, insists that:

The Securities and Exchange Commission’s deadline for deciding on an ETF proposal is typically triggered by a publication in the Federal Register. Which will almost not happen at least until the government shutdown has come to an end. Based on the SEC’s operations model, they have stopped all review and processing of proposed rule alterations because of the appropriation lapses.”

A number of Bitcoin ETF proposals have either been withdrawn or rejected in previous attempts, with Choe the most recent after going on to pull out of its joint effort with SolidX and VanEck earlier in the week. The CEO of VanEck Jan van Eck insisted that the government shutdown was a key reason for the decision. Explaining that the firms were discussing with the SEC just before the US government shutdown, but these conversations have stopped. However, Eck said the startups would likely re-file once the government re-opens operations.

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.


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