US Exchange Completes Paperwork with Bitwise for a Bitcoin (BTC) ETF Approval

Bitwise announced that it plans to launch what is claimed to be the first ever approved bitcoin ETF with NYSE Arca as the US Exchange completes the required paperwork for the bitcoin ETF.

It is reported that a government shutdown is in progress due to which the U.S. Security and Exchange Commission (SEC) is currently not operating, as a result, despite the paperwork submission by NYSE Arca for the bitcoin ETF, no record is visible on the government authority’s website that the application has been filed for. Regardless of the fact that NYSE Arca completed the paperwork for submission, the document did not come much into notice, pending the decision till further consideration.

The launch of this bitcoin ETF was thought to be different from previous applications as this one included a third party which would hold the bitcoins. Also, it intends to collect pricing data from multiple sources which would determine the value of the crypto assets. This would have helped keep the credibility of the crypto assets intact and it will, if the government halt ends soon and the SEC takes a decision in favor of the submission for the possible first ever bitcoin ETF.

The document states:

When calculating the value of the Index the Index Provider makes use of the actual trades executed on the various Verified Exchanges. Prices are weighted such that bitcoin prices from exchanges with a greater amount of the trading volume in the prior hour are weighted more heavily than bitcoin prices from exchanges with lesser amounts of volume.

It explains the mechanism of the Index Provider and how the prices of digital assets are calculated, that is, the prices of bitcoin by exchanges of greater trading volume are weighted more than that of the exchanges of lesser trading volume. The reason why this is done is further explained in the document, which says:

The Index is based on various inputs which may include price data from various third-party exchanges and markets. The Index Provider does not guarantee the validity of any of these inputs, which may be subject to technological error, manipulative activity, or fraudulent reporting from their initial source.

The document highlights the functions of the Index Provider and its responsibilities, claiming that the Index Provider will not be responsible for any technical error, manipulation in bitcoin’s activities or any fraudulent activity associated with the crypto asset before coming into its possession. The Index will consist the price data from multiple sources however, it must not be held accountable for any inconvenience in the cryptocurrency’s activities.

The submitted file for bitcoin ETF also focused on the impact such activities will have on the crypto market, adding:

In addition, given the fungible nature of bitcoin, the Index Provider believes that the potential impact on Index values of individual exchanges experiencing outside attempts to manipulate either reported volume or reported prices is muted by the use of a large number of exchange price and volume inputs.

The submission of Bitwise Bitcoin ETF’s application does not mean that hopes for a decision must be tied just yet, at least not until the government shutdown ends. Attorney Jake Chervinsky, a professional lawyer for Kobre & Kim, said in an interview:

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.
According to the SEC’s operations plan, they have discontinued all processing and review of proposed rule changes due to the lapse in appropriations.

The law expert suggests that while there is a government halt at the moment, the U.S. Securities and Exchange Commission (SEC) will not be operational which means that the application for a Bitwise Bitcoin ETF will not be currently registered in the government authority’s record and until the government shutdown stands, there are no chances for that happening.

Jaudat Sulehri

A management student, sports enthusiast and a writer. Jaudat gives his insights on the cryptocurrency in the world of trade and blockchain technology in particular. He also holds investments in XRP and BCH. Contact the editor at editor.opinions@blockpublisher.com

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