The United States Securities and Exchange Commission (SEC) recently issued two deadline extension notices–postponing decisions on Bitcoin exchange-traded fund (ETF) proposals by Bitwise and Grayscale.
On October 14, after almost two years since its first attempt, Bitwise Asset Management filed for approval of a physically-backed Bitcoin ETF with NYSE Arca.
Deadline extension notices
“The Commission considers it appropriate to designate a longer period for taking action regarding the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received,” read both notices.
The Commission postponed its decision to “either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved for the 45-day period,” which in the case of Bitwise Bitcoin ETP Trust means until February 1, and in the case of Grayscale Bitcoin Trust’s Bitcoin ETF until February 6.
Bitwise first applied for a Bitcoin ETF in January 2019, but was rejected by the SEC. The regulator kept the rejection review on standby, until, finally, Bitweis pulled the proposal in early 2020.
Just recently, Bitweis launched another world’s first investment product– an NFT index fund, offering diversified exposure, while tracking an index of the most renowned NFT collections.
JUST IN: Bitwise launching an NFT Index Fund. Cryptopunks earn the highest weighting at 37% followed by Bored Apes at 30%. Here's the Top 10 as well as @Matt_Hougan thread on it https://t.co/Hyjl3WUz89 pic.twitter.com/hEjxspn9zR
— Eric Balchunas (@EricBalchunas) December 16, 2021
The Bitwise Blue-Chip NFT Index Fund holds the 10 most valuable NFT collections by market cap, including CryptoPunks, Bored Apes, and Fidenza, to name a few.
SEC on the fence
Following the SEC rejecting a physical Bitcoin ETF by VanEck, Grayscale Investments attorneys issued a letter to the SEC, stating that the regulator is violating the Administrative Protections Act (APA) by discriminating against Bitcoin spot ETFs.
Earlier this year, the SEC showed readiness to greenlight Bitcoin futures ETFs, which don’t directly own Bitcoin, and are not tied to the spot price, but are based on futures contracts, hence tracking the future price of the asset.
A spot ETF would allow investors to trade on the current price of Bitcoin, hence offering more direct exposure, but thus far, the SEC remains on the fence.
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