Cryptocurrency asset manager Bitwise has withdrawn its proposal to list a physically-backed Bitcoin exchange-traded fund (ETF) on NYSE Arca with the U.S. Securities and Exchange Commission (SEC).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

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