SEC Pushes Back Decision on Wilshire Phoenix Bitcoin ETF

The US Securities and Exchange Commission (SEC) has rescheduled its decision on whether to approve Bitcoin exchange-traded fund proposed by New York-based investment-management firm Wilshire Phoenix.

The proposed rule change will allow Wilshire Phoenix Fund to list shares of ETF on NYSE Arca. Earlier in June, the SEC has declared that the public can comment on the proposed ETF within 21 days’ time period. After getting the public comments, the SEC can make an initial ruling within 45 days, but the agency can extend it up to 90 days.

Unlike other ETF proposals, Wilshire’s trust plans to hold positions in Bitcoin, short-term Treasury bills, and US dollars. Explaining that rationale behind this diversification, the company says it would reduce overall Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and provide investors with exposure to bitcoin “in a manner that is more efficient, convenient and less volatile than purchasing stand-alone bitcoin,” the filing stated.

In that respect, it will be less similar to an ETF and more like the private placement investments which are sold to accredited investors to enable them to have exposure to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in traditional financial accounts.

A long list of failed ETF attempts

With this latest decision, the Wilshire proposal joins the long list of failed attempts to get an ETF approved by the SEC, leaving the title for the first approved BTC exchange-traded product still empty.

Having received only six comment letters so far, the commission is seeking more comments on the proposal before it makes a further decision. The deadline to submit comments is due 35 days. Given the ramifications of a bitcoin ETF, however, the SEC may extend this time period an additional 60 days if it determines a longer period is appropriate.

Historically, the US top regulator takes the maximum amount of time available to them to evaluate the proposed BTC derivatives. There is then a period of six months for the listing exchange to address grounds for disapproval that may have been highlighted by the SEC.