Bitwise Asset Management, a cryptocurrency firm, asserts that it has discovered a new way to register with the U.S. Securities and Exchange Commission (SEC) following broker-dealer regulations. The company could introduce a publicly traded exchange-traded fund (ETF) for digital currency.
According to report, Bitwise, which already provides institutional investors with cryptocurrency-related products, has been attempting to introduce a cryptocurrency ETF for several years. However, because of worries about market manipulation and investor safety, the SEC has thus far rejected every application for a Bitcoin ETF.
By applying to the U.S. Financial Industry Regulatory Authority (FINRA) as a broker-dealer, Bitwise’s new strategy would enable the company to market its ETF to retail investors. The action is viewed as a means of getting around the SEC’s stringent ETF criteria, which have blocked the approval of any cryptocurrency ETFs.
According to Bitwise CEO Hunter Horsley, in a statement said that “We believe this is the first time a crypto index provider has sought to register as a broker-dealer under the Securities Exchange Act of 1934.” We are thrilled to be moving the regulatory process along significantly. We look forward to working with the SEC and FINRA to launch a publicly listed cryptocurrency ETF.
Bitwise Explains The Registration Procedure, Gives Reasons
The decision by Bitwise coincides with mainstream investors’ increased interest in digital currencies, many of whom are looking for access to the market through regulated investment products. However, the lack of a publicly traded cryptocurrency ETF has been viewed as a significant barrier to individual investors’ greater embrace of digital currencies.
If successful, Bitwise’s registration as a broker-dealer may allow other cryptocurrency businesses to release comparable products, potentially creating a new investment opportunity in the quickly expanding crypto sector. The decision by Bitwise coincides with mainstream investors’ increased interest in digital currencies, many of whom are looking for access to the market through regulated investment products.
It was explained that the lack of a publicly traded cryptocurrency ETF is responsible for a major barrier to individual investors’ need to embrace digital currencies. If successful, Bitwise’s registration as a broker-dealer may allow other cryptocurrency businesses to release comparable products, potentially creating a new investment opportunity in the fast-expanding cryptocurrency sector.
According to the report, Bitwise’s recent revelation that it has discovered a new route to register with the SEC under a broker rule is a significant move. If successful, the action would open up a new investment route in the fast expanding digital currency sector by paving the way for introducing the first publicly traded ccryptocurrenc ETF. Although there are still some hurdles to scale, it still needs to be determined whether Bitwise’s strategy will effectively get its ETF approved, given the SEC’s warning on virtual currencies.