The Securities and Exchange Commission (SEC) has postponed making a choice on a bitcoin and U.S. Treasury bond exchange-traded fund (ETF) proposal filed by Wilshire Phoenix.
According to a document published Friday, the SEC will proceed evaluating the proposal, which was first filed earlier this summer time, setting Feb. 26, 2020 as its subsequent determination date to approve or reject the ETF proposal.
The securities regulator has been detest to approve any bitcoin ETF, rejecting greater than a dozen within the final two years. The company has pointed to considerations about market manipulation and surveillance sharing as two areas it might like to see bolstered earlier than it might approve an ETF.
Wilshire Phoenix believes it has discovered a approach to handle these considerations. In an interview with CoinDesk in November, Wilshire founder and managing associate William Herrmann stated the truth that his firm’s proposal, filed with NYSE Arca, is a multi-asset belief protects it towards bitcoin’s worth volatility.
Should volatility improve, the belief will mechanically rebalance itself to lower its bitcoin publicity and improve its publicity to the Treasury payments. As volatility falls, so too does the Treasury invoice publicity.
The firm filed a comment letter on Dec. 18 in an try to additional assuage these considerations. Herrmann informed CoinDesk Friday that the letter “addresses how the [exchange-traded product] is structurally and fundamentally different from prior bitcoin-related ETP applications.”
“The remark goes on to present how the 2 markets which might be related to the Trust – referred to by the Commission because the ‘regulated markets of serious measurement’ – are the CME bitcoin futures market and the spot market composed of the 5 constituent exchanges from which pricing for the CME CF BRR is decided,” he stated.
The 5 exchanges embrace Coinbase, Kraken, itBit, Bitstamp and Gemini, they usually characterize nearly all of the bitcoin-U.S. greenback market, he stated. The exchanges even have surveillance-sharing agreements with the CME and CF Benchmarks, the reference price’s administrator.
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