SEC Punts Decision on Wilshire Phoenix’s Bitcoin ETF Proposal to February

The Securities and Exchange Commission (SEC) has postponed making a decision on a bitcoin and U.S. Treasury bond marketplace -traded fund (ETF) proposal filed by Wilshire Phoenix.

According to a document printed Friday, the SEC will continue analyzing the proposition, which has been originally registered earlier this summer, putting Feb. 26, 2020 since its next choice date to take or take the ETF proposal.

The securities regulator has been hate to take a few bitcoin ETF, rejecting more than a dozen in the prior few decades. The agency has pointed to questions regarding market manipulation and surveillance sharing as two areas it would like to see strengthened before it may surpass an ETF.

Wilshire Phoenix believes it has found a way to address these concerns. In a meeting with CoinDesk in November, Wilshire founder and managing partner William Herrmann said that his company’s proposal, enrolled using NYSE Arca, is a multi-asset trust protects it against bitcoin’s price volatility.

Should volatility increase, the assurance will automatically encode itself to lower its bitcoin vulnerability and increase its vulnerability to the Treasury bills. As volatility falls, so does the Treasury fee vulnerability.

The company filed a comment letter on Dec. 18 in a bid to further assuage these concerns. Herrmann advised CoinDesk Friday the correspondence”addresses how the [exchange-traded product] is fundamentally different from preceding bitcoin-related ETP applications.”

“The comment goes on to show how the two markets that are relevant to the Trust – referred to by the Commission as the ‘regulated markets of significant size’  –  are the CME bitcoin futures market and the spot market composed of the five constituent exchanges from which pricing for the CME CF BRR is determined,” he clarified.

The five trades include Coinbase, Kraken, itBit, Bitstamp and Gemini, and they represent the huge majority of these bitcoin-U.S. dollar market, he clarified. The trades have surveillance-sharing agreements utilizing the CME and CF Benchmarks, the grade rate’s administrator.

Disclosure Read More

The leader in blockchain data, CoinDesk is a media outlet that attempts for the best journalistic criteria and abides by a strict set of qualitative policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.


Comments (No)

Leave a Reply