The writing was on the wall that Bitwise’s filing for a bitcoin exchange-traded fund would be denied.
For starters, the Securities and Exchange Commission (SEC) has never approved one before, so Bitwise’s bitcoin ETF application being accepted would have been a precedent-setting first. Another harbinger came less than a month ago, when fellow applicant Van Eck withdrew its own bitcoin ETF application from consideration.
So it was perhaps no big surprise when Bitwise received its rejection earlier this week. But hope springs eternal in the world of digital assets, the firm noting that a denial at least forced the SEC to explicitly outline its qualms about ETFs tied to the crypto market.