Bitwise reiterates commitment to delivering a Bitcoin ETF

Asset management company Bitwise has sent a new letter to the US Securities and Exchange Commission (SEC) reiterating its commitment to delivering a Bitcoin ETF, asserting that it would add protections to retail investors entering the crypto market.

The SEC rejected Bitwise’s proposal back in October, claiming that the proposed ETF would not meet legal requirements for the prevention of market manipulation nor prevent other illicit activities.

Bitwise has now responded claiming that a Bitcoin ETF would allow new investors to participate in the cryptocurrency markets through the safety of a regulated financial instrument.

Commenting on the rise of young investors taking an interest in digital assets, the letter reads:

“The number of US investors—particularly younger investors—making allocations to Bitcoin can surprise people who don’t focus on this market on a day-to-day basis.”

The letter also voices concern over existing ways to enter the cryptocurrency markets, stating there are a number of pitfalls for retail investors which may be solved through an ETF – such as high fees and the danger of losing funds through inadequate security.

The letter continues:

“This security risk is particularly acute at the individual level, where the loss of a password or the illicit porting of a cell phone can lead to a complete loss of assets.”

Bitwise also states that while it agrees that the SEC needs to make its decision according to the Exchange Act, the current dangers to crypto buyers add increasing urgency to the ETF approval process.

Will a Bitcoin ETF ever be approved?

Many digital asset experts have speculated that a Bitcoin ETF will never be on the cards as long as SEC chairman Jay Clayton presides over the decision.

US lawyer Jake Chervinsky tweeted following the rejection of the Bitwise ETF that it is reasonable to assume that Jay Clayton’s SEC “will never approve a Bitcoin ETF“.

Chervinsky also previously said that the chance of the ETF being approved was just 0.01%.

Bitwise has met with SEC officials and submitted proposals several times over the course of this year since its first filing in January 2019.

However, the repeated rejections haven’t dampened Bitwise’s enthusiasm for a Bitcoin ETF, as the company concluded:

“Bitwise is committed to creating a Bitcoin ETF that provides all investors with the ability to access Bitcoin in a regulated and familiar fund format with the transparent and robust disclosures required by the federal securities laws.”

The SEC has yet to respond to Bitwise’s latest letter, but the regulator has said that it is “reconsidering” the proposal.

The post Bitwise reiterates commitment to delivering a Bitcoin ETF appeared first on Coin Rivet.

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