Bitwise Comments On The SEC’s Order Regarding The Bitwise Bitcoin ETF Trust


SAN FRANCISCO, Oct. 9, 2019 /PRNewswire/ — Bitwise Asset Management, the leading provider of cryptoasset index and beta funds, issued the following comment today regarding the Security and Exchange Commission’s “Order Disapproving a Proposed Rule Change, as Modified by Amendment No. 1, Relating to the Listing and Trading of Shares of the Bitwise Bitcoin ETF Trust Under NYSE Arca Rule 8.201-E.”

The comment is attributable to Matt Hougan, Global Head of Research, Bitwise Asset Management.

Earlier today, the SEC issued a 112-page order disapproving NYSE Arca’s proposed rule change to list and trade shares of the Bitwise Bitcoin ETF Trust.

We deeply appreciate the SEC’s careful review. The detailed feedback they have provided in the Order provides critical context and a clear pathway for ETF applicants to continue moving forward on efforts to list a bitcoin ETF.

We look forward to continuing to productively engage with the SEC to resolve their remaining concerns, and intend to re-file as soon as appropriate.

Historically, the approval of novel exchange-traded products that open up new asset classes has required multiple years of regulatory engagement. What matters is continued progress and the investment of time from regulators, and that’s what we see here.

As background: Since the initial filing of our S-1 for the Bitwise Bitcoin ETF Trust on January 9, 2019, we have engaged in a deep analysis of and response to the critical questions the SEC has raised regarding our application, NYSE Arca’s proposed rule change and the nature of the bitcoin market in general. This has included:

  • Multiple in-person meetings with the Staff of the SEC, including with representatives from the divisions of Trading & Markets, Investment Management, Corporate Finance, Enforcement and the Offices of multiple SEC Commissioners.
  • The submission by Bitwise of 561 pages of supporting research, including work on the separation of real and fake volume in the crypto markets, a detailed analysis of the Winklevoss Order, an examination of the rapid growth and importance of the CME bitcoin futures market, and more.
  • The submission of nine detailed Comment Letters in support of our application from senior representatives from across the crypto and wealth management industries, including from the New York Stock Exchange, Omniex Holdings, the Blockchain Association, Collaborative Fund, Coinbase Custody, Cole-Frieman & Mallon, Donostia Ventures, Castle Island Ventures, Blockchain Capital and Tagomi Holdings.

In addition, the bitcoin market itself has evolved in important and positive ways in recent years. This important progress includes:

While we were not able to satisfy the SEC’s concerns inside the statutory 240-day review window afforded these filings, and while they have identified the need for additional data and context to interpret our key findings, we are pleased with the progress that the industry has made and believe that, with additional research and continued progress in the broader ecosystem, the remaining concerns and challenges raised in this order will ultimately be satisfied.

Bitwise Asset Management is the leading provider of index and beta funds for the cryptoasset space. The firm created the world’s first cryptoasset index fund in 2017, and today manages multiple funds serving institutions, family offices, financial advisors, asset managers, and high net worth individuals. Its indexes serve as a benchmark for more than 30 leading crypto hedge funds, academics, and large financial institutions. Based in San Francisco, Bitwise’s executive team combines decades of experience in traditional asset management and indexing with deep knowledge of software and technology. The team has backgrounds at firms including BlackRock, Goldman Sachs, Deutsche Bank, US Commodity Funds, IndexIQ,, Facebook, and Wealthfront. Bitwise is backed by institutional investors and leading venture capital firms including Khosla Ventures, General Catalyst, and Blockchain Capital. It is a frequent commentator on crypto in publications like Institutional Investor, CNBC, Barron’s, Bloomberg, The Wall Street Journal, and The New York Times.

Important Disclosures About the Bitwise Bitcoin ETF Registration Statement and Offering

The Bitwise Bitcoin ETF Trust (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at

Important Disclosures Regarding the Bitwise Privately-Offered Funds

This release (this “Release”) is being furnished for informational purposes only. Shares or interests in certain funds managed by Bitwise Asset Management, Inc. and its affiliates, including the Bitwise 10 Private Index Fund, LLC, Digital Asset Index Fund, LLC, Bitwise Ethereum Fund, LLC and Bitwise Bitcoin Fund, LLC may only be offered to certain United States accredited investors as defined in Rule 501 of Regulation D promulgated under the U.S. Securities Act of 1933 and to certain non-United States persons pursuant to Regulation S promulgated under the Securities Act of 1933. This Release is neither an offer to sell nor a solicitation for an offer to buy shares or interests in any fund. Any offer to sell or solicitation of an offer to buy shares or interests in any fund will be made solely through definitive offering documents, identified as such, in respect of the fund in compliance with the terms of applicable securities and other laws. Such definitive offering documents, if any, will describe risks related to an investment in such funds (including loss of the entire investment) and will qualify in their entirety the information set forth in this Release.



Hewes Communications, Inc.
Tucker Hewes


SOURCE Bitwise Asset Management

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