Bitwise Re-Files for BTC ETF, believes SEC will approve

Bitwise, the famous asset manager, has re-filed for the Bitcoin Exchange Traded Fund (ETF) product with NYSE Arca. It is considered a significant move following the previous application rejection. Matt Hougan, Chief Investment Officer (CEO) of the company, said that it has an active BTC futures ETF application. The company believes that a real BTC ETF is better for anyone.

Hougan said that a BTC ETF could cost around 5-10% a year to roll out the futures, which will incur 1-2% fees. This makes it an uneconomic adventure to pull in profits for the investors. 

As per the rules, an 100% funds investment into Futures by any ETF is impossible, and most product filing companies seek a dilution rate of 85%. 

The CEO also noted the risks associated with BTC ETFs that track futures. He talked about position limits and liquidity, which contribute to the uncertainty in the BTC Futures options.

Improvements by Bitwise 

Hougan pointed out that Bitwise was rejected for its ETF by the Securities and Exchange Commission (SEC) last time. SEC shared a 100-page memo with the company, which contained the biggest concerns about the Ecosystem.

He said that the entire team has worked for the last two years studying the concerns and finding ways to address these issues.

One such concern is the inability to overcome price manipulation and enforce huge checks of activities. The SEC will need a “regulated market of considerable size” to lead price discovery to check the mark of the requirement.

The Chicago Mercantile Exchange (CME) fits under both the descriptions for being regulated, which makes it a major source of price discovery, better than the major exchanges including Binance and Coinbase. Citing this development, Bitwise is fully confident in its product and believes that SEC will surely approve its application.

The SEC chair Gary Gensler recently hinted that we can see BTC ETFs rolling up before December which has increased the price of BTC as the institutional investors stepped in.