The U.S. Securities and Exchange Commission has asked Bitwise to clarify how the investment firm will prevent share manipulation, fraud and other potential issues in its proposed spot bitcoin exchange-traded fund (ETF), according to a notice to the company on Tuesday.
- The agency also flagged its concerns about the Bitwise Bitcoin ETP Trust's liquidity and transparency and requested more color on the “suitability” of bitcoin as the underlying asset for the fund.
- The SEC’s request veered from its serial denials to date of other proposed spot bitcoin exchange-traded products (ETP).
- Over the past two months, the agency has rejected spot bitcoin ETF applications from WisdomTree, Krypton, SkyBridge and Fidelity. It is weighing a number of other applications from investment firms.
- In December the SEC delayed a decision on the spot bitcoin applications of Bitwise and Grayscale, a unit of Digital Currency Group, which is also the parent company of CoinDesk.
- Bitwise will have 21 days to respond to the SEC’s concerns.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.