The Securities and Exchange Commission (SEC) will either approve or reject Wilshire Phoenix’s Bitcoin ETF this week.
However, the crypto community is not keeping up its hopes since the market watchdog has rejected ETF applications previously.
On 26 February, SEC will decide on the fate of the Bitcoin ETF. Previously, the market regulator has raised worries about the immature crypto markets and high fluctuation.
In mid-2019, Wilshire Phoenix has submitted an ETF application. However, SEC has postponed its decision, but the commission will say its final word next Wednesday.
Meanwhile, William Herrmann, Wilshire managing partner, said he is optimistic about the application, adding:
“We wouldn’t have filed it if we didn’t think that it would be approved.”
“We want to provide easy access to strategies that are often only limited to institutions or accredited investors,” he said.
“Restraining who is able to invest in any product or strategy on the basis of socioeconomic status or for any reason is simply wrong. This leaves many exposed to sudden market volatility followed by likely losses due to lack of diversification.”
A Bitcoin ETF is an instrument that helps monitor the performance of underlying assets. Thus, investors can easily invest in the ETF without really knowing the technical difficulties of the asset class.
However, crypto analyst Jake Chervinksy expected the Bitcoin ETF to be turned down by the commission.
Several crypto exchanges attempt to issue Bitcoin ETFs
Earlier, Cryptolydian reported that several crypto companies based in the US have been attempting at issuing publicly-traded Bitcoin funds (ETFs). Thus, Bitcoin became among the most efficient institutional markets in the world.
Although the US security watchdog had declined the latest proposal from Bitwise, it reconsidered its decision about the Bitcoin ETF filing submitted by Bitwise Asset Management and NYSE Arca.
Mr. Matt Hougan, the managing director of Bitwise Asset Management, said his company has a competitive edge at achieving success in Bitcoin ETF history despite SEC rejections previously.