NYSE Arca and Bitwise Apply for Bitcoin ETF Approval
Despite the constant delays and obstacles imposed by regulatory bodies, especially by the United States Securities and Exchange Commission, the crypto market refuses to succumb, and new players are always interested in trying their luck by applying for a Bitcoin ETF Approval.
The last application for a Bitcoin ETF comes from Bitwise Asset Management and NYSE Arca. The features of the application were recently disclosed affiliate sparking good expectations.
When Bitwise and NYSE announced their intentions to launch a Bitcoin ETF, the news had little impact, the bad aftertaste left by CBOE’s decision not to pursue its application initiative grabbed the attention of traders and crypto enthusiasts around the world.
The team hopes to accomplish what would be a first of its kind achievement by tackling some of the problems that prevented the approval of previous requests. One of the actions will be the custody of Bitcoins by a regulated third-party custodian. Likewise, the calculation of the price index will take into account the trading volume of the exchanges used as references, giving more importance to those with higher volume, avoiding the possibility of price manipulation using small volume exchanges to control prices artificially.
Government Shutdown Affects the Crypto Ecosystem
It is important to note that the CBOE application was not actually denied, the team responsible for its impulse temporarily stopped its efforts due to the government shutdown, though they did not deny the possibility of resuming their efforts in the near future, nor did they give information on any specific time for its reapplication after the government returns to its regular activities.
It seems that this situation is decisive for the future of cryptocurrencies and for the dream of an ETF to become a reality. Coindesk’s team spoke with Jake Chervinsky, one of the Attorneys of law firm Kobre Kim, who commented that to activate discussions at the SEC, it is first necessary to publish the application in the Federal Register, something that is very difficult due precisely to the infamous shut-down.
“The SEC’s deadline for deciding an ETF proposal is triggered by publication in the Federal Register … That almost certainly won’t happen until after the government shutdown ends.”