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SEC shows concern over Bitcoin ETF Trust’s Liquidity and transparency

SEC has expressed concerns on the Bitwise Bitcoin ETP Trust's liquidity and transparency, and asked it for further information on bitcoin's "suitability" as the fund's underlying asset.

According to a warning notice sent to Bitwise on Tuesday, the Securities and Exchange Commission (SEC) of the USA has requested the investment business to specify how it would avoid share manipulation, fraud, and other possible concerns in its planned spot bitcoin ETF.

The agency also expressed concerns on the Bitwise Bitcoin ETP Trust’s liquidity and transparency, and asked it for further information on bitcoin’s “suitability” as the fund’s underlying asset.

The request differed from the SEC’s previous rejections of other similar spot Bitcoin ETPs. WisdomTree, Krypton, SkyBridge, and Fidelity had been denied their applications in the last two months. It is considering a number of additional investment firm applications.

The SEC postponed a judgement on Bitwise and Grayscale spot bitcoin applications in December. Bitwise is a subsidiary of Digital Currency Group, CoinDesk’s parent company. The SEC has given Bitwise 21 days to reply to their concerns.

 

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