The investment fund managed by Bitwise received approval from the U.S. Securities and Exchange Commission (SEC).
The U.S. Securities and Exchange Commission (SEC) has expedited the launch of a new spot cryptocurrency exchange-traded fund (ETF). This is one proposed by Bitwise, which invests directly in bitcoin (BTC) and ether (ETH).
The approval occurred yesterday, 45 days after Bitwise submitted the ETF proposal to the SEC, a shorter time than the agency usually takes to give the green light. In fact, this was the first deadline of the four that the agency has to issue a verdict.
"In particular, the Commission believes that the proposal is consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of the Exchange are designed to 'prevent fraudulent and manipulative acts and practices' and, 'in general, to protect investors and the public interest,'" details the SEC in the approval statement.
The decision period was shorter than that of the first combined spot bitcoin and ether ETFs approved by the agency in December. Such instruments are issued, as reported by CriptoNoticias, by companies Hashdex and Franklin Templeton, a group that is now joined by Bitwise with the SEC's new approval.
"Because Hashdex and Franklin were already approved, it made sense for this to be authorized quickly as well," notes analyst James Seyffart, who specializes in exchange-traded funds. In this sense, the initiative does not necessarily relate to the change in direction of the SEC with the entry of Donald Trump as President of the United States.
The SEC is expected to allow ETFs for other cryptocurrencies.
"I really want to interpret this as a sign that the new SEC will be faster," says Eric Balchunas, a fellow analyst at Seyffart. However, he warns that even the agency led by Gensler would have eventually approved this product, due to the authorization of the combined spot bitcoin and ether ETFs made in December.
