Bitwise Withdraws Bitcoin ETF Proposal with the SEC

Francisco Memoria

Cryptocurrency asset manager Bitwise has withdrawn its proposal to list a physically-backed Bitcoin exchange-traded fund (ETF) on NYSE Arca with the U.S. Securities and Exchange Commission (SEC).

According to a note published today by the regulator, the Bitwise Bitcoin ETF Trust requested the withdrawal of its registration statement, which was initially filed with the SEC back in January 2019. The note reads:

The Registrant believes that this withdrawal request is consistent with the public interest and protection of investors as required by Rule 477(a) of the Act and represents, in accordance with Rule 477(c) of the Act, that there has been no issuance, distribution or sale of the securities under the Registration Statement.

The company’s ETF registration would see it launch a BTC investment product that would track its Bitwise Bitcoin Total Return Index. According to the firm, its proposed ETF differs from other proposals the SEC rejected as it will safeguard the holdings in cold storage under the custody of an institutional, regulated custodian.

The index itself draws prices from a large number of cryptocurrency exchanges. IF approved, the ETF would be listed on NYSE Arca, an exchange owned by the Intercontinental Exchange (ICE).

The SEC initially rejected Bitwise’s Bitcoin ETF proposal back in October 2019, and the firm soon started addressing the regulator’s concerns regarding market manipulation, which were cited as one of the reasons behind the rejection. In November 2019, the regulator started taking a second look at the proposal.

Featured image via Pixabay.

Argentina’s Smallest Currency Denomination Now Worth Only One Satoshi

Michael LaVere
  • Argentina's smallest currency denomination, the centavo, is now worth one satoshi.
  • The country is in the midst of a currency crisis, with the inflation rate reaching 50 percent. 

Argentina’s smallest unit of currency has slumped in value to now be worth the equivalent of one satoshi. 

The Centavo, which has been in circulation since 1854, has joined the Lebanese Lira and Vietnamese Dong in being the same value as the smallest denomination for bitcoin. 

The currency’s fall in value was noted by Argentinian Reddit user u/OneMoreJuan, who used the Centavo’s plight as an example to invest in bitcoin. Another user in the comments claimed that scrap material for the Centavo was now worth more than the coin itself.

Argentina is one of several South American countries to undergo hyperinflation and currency crisis in recent years, with the government defaulting on its loans a record nine times. The country entered its third year of recession prior to the start of the coronavirus pandemic, after undergoing an economic crisis that first began in 2018. 

According to a report by Bloomberg, Argentina’s inflation has outpaced expectations, with the current rate reaching roughly 50 percent. 

Argentinians have responded to the devalued fiat by turning to bitcoin and crypto-assets in droves. Data aggregator Coindance shows a significant spike in weekly LocalBitcoins volume for Argentinian customers since the start of the year, reaching as high as $70 million in May.

Featured Image Credit: Photo via Pixabay.com