SEC Requires Bitwise to Address Concerns About Share Manipulation

Bitwise Investment Company has been notified by the SEC about possible problems with share monopolization and fraudulent acts. Bitwise received this information as a note on Tuesday.

What is Bitwise?

Bitwise was the largest cryptocurrency index fund manager in 2017, and it is still going strong. The company has always sought out the best investment opportunities for its investors since its inception. Users can use the platform to maximize their profits and access over 12 cryptocurrency funds.

Investors will have an easier and more advanced way to access a platform that provides solutions to the most difficult questions.

SEC is concerned about proposed Spot Bitcoin ETF

The Securities and Exchange Commission (SEC), has delayed its decision to allow Bitwise Asset Management to deploy a spot Bitcoin ETF. The agency also sought clarifications from Bitwise on the matter.

The agency sent a notice to Bitwise asking for advice on how Bitwise will address potential problems such as fraud and share monopolization in its spot Bitcoin ETF.

Bitwise and NYSE

Bitwise and NYSE Arca submitted their rule changes in October 2017. The United States SEC subsequently delayed its decision on the proposal and rescheduled it for February 1, 2020. Despite reaching today, the regulator did not respond.

Despite some delays by the SEC, VanEck Bitcoin ProShares Bitcoin Strategy was approved.

The Notice is Supported

Security and Exchange Commission highlighted the Bitcoin ETP TTrust's transparency and liquidity in the notice. Furthermore, the agency asked that the investment company throws more light on BBitcoin'ssuitability.

The notice also stated that manipulations can occur in the coin markets; therefore, Bitcoin's suitability for ETP (Exchange Traded Products) is a fundamental property.

After it delayed the Bitcoin exchange-traded funds of many issuers in recent months, including SkyBridge and Valkyrie, the agency's delay was also caused by Fidelity.
The world's most popular crypto-coin was trading at $38,468.16 by 1.30 PM ET. After it reached an All-Time High of $69,000 in November 2021, this declined.

Kryptoin, an investment company, was previously rebuffed by the SEC in December. After 8 months of scrutiny, the proposal was rejected.

This decision came as no surprise, however, since the Security and Exchange Chairman had already expressed his opinion for Bitcoin futures Exchange Traded Fund to be an independent ETF that owns the Bitcoin.