The US Securities and Exchange Commission (SEC) is once again open to public opinion with regards to the updated Bitcoin ETF proposal by Wilshire Phoenix Fund.
Bitcoin ETF once again takes the stage.
The Investment management platform and NYSE Arca exchange resubmitted an amended application on its Bitcoin ETF to the SEC. According to the official publication, Wilshire Phoenix and NYSE Arca exchange is seeking approval of their Bitcoin ETF.
To remind, the SEC rejected the last proposal submitted by NYSE Arca because it didn’t meet legal requirements. For instance, the ability to prevent market manipulation, exploitation, and illegal activities.
The re-amended proposal disclosed that Coinbase Custody will operate as the caretaker of the Trust’s Bitcoin assets. This simply means that Coinbase Custody will be in charge of custody. It will also oversee assets confirmation and availability under five working days of its monthly balancing.
Besides, the SEC states that the approval of Gold ETFs only took place when regulators paid attention to spot and futures trading. These tradings have “a meaningful impact on the ETP.” Thus, Bitcoin ETFs should fulfill these requirements.
According to Wilshire, the trust is using the CME CF Bitcoin Reference Rate to establish the Net Asset Value (NAV).
“… The CME CF BRR was created to facilitate financial products based on Bitcoin. It serves as a once-a-day reference rate of the US dollar price of Bitcoin (USD/BTC),” it said.
The proposal added that while the Trust uses the CME CF BRR to evaluate its Bitcoin assets, it won’t be trading Bitcoin Futures contracts.
SEC and Bitcoin ETFs dilemma
It is important to note that to date the SEC has rejected all Bitcoin ETF proposals. It has cited market manipulation and avenue for illicit activities as reasons.
Recently, the SEC rejected Bitcoin ETF proposals from several organizations such as Bitwise, VanEck & SolidX etc. Stating they did not meet the necessary regulatory standards to be granted approval.
The SEC has started collecting public comments on the Wilshire Phoenix Fund re-submitted proposal. So far only six comments have been received according to the SEC’s website.
The SEC is currently ongoing procedure to determine if its going to approve or disapprove the submitted proposal. If approved NYSE Arca will be able to list and trade shares of Wilshire’s Bitcoin and Treasury Investment Trust.
 to the SEC.){kind=link}