Bitwise withdraws its ETF proposal on Bitcoin

bitwise withdrew its proposal from exchange traded fund (ETF) sure Bitcoin. The US company will re-apply at a "better time".

According to a letter from Bitwise Asset Management published by the Security Exchange Comission (SEC) of the United States, the financial services company has withdrawn its application for its Exchange Traded Fund (ETF) sure Bitcoin, filed earlier last year.

In accordance with Rule 477 of the Securities Act, Bitwise Bitcoin ETF Trust respectfully requests the withdrawal of the registration declaration […] The licensee believes that this withdrawal request is in the public interest and for the protection of investors, "Bitwise wrote.

The financial product offered by bitwise differed from previous proposals forETF on Bitcoin because it relied on regulated third party custodians and physically retained the bitcoins.

During an interview given this morning to TheBlock, Matt Hougan, director of research at bitwisesaid the proposal was withdrawn because the firm intended to reiterate its request "at a more opportune time".

We remain fully engaged in the development of an ETF on Bitcoin, ”he added.

In October 2019, the American stock market policeman DRY rejected the application of bitwise and finally announced in November that he would reconsider the proposal.

No ETF on Bitcoin has not yet been approved United States. For the SEC, approval of such a product raises questions about the ability of the exchanges to avoid price manipulation and fraud.