SEC Seeks Public Response for Wilshire Phoenix’s Bitcoin ETF

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has started to accept public comments on a Bitcoin exchange-traded fund (ETF) proposal filed by Wilshire Phoenix Fund.

Per a notice published by the regulator on Tuesday, Wilshire Phoenix and NYSE Arca have made amendments to their ETF proposal to showcase the new market conditions.

The updated filing showed that the companies have chosen Coinbase Custody to act as custodian of the trust’s digital assets. In addition, the custodian will confirm the availability of assets deposited by the trust within five business days of its monthly rebalancing.

Calculated amended after Bitwise's rejection

The updated filing also touched the concerns of the market manipulation with the proposed investment instrument.

“The Sponsor notes that, in connection with the Commission’s analysis of whether a market is inherently resistant to manipulation, the Commission has in certain circumstances focused not on the market as a whole but instead on the significant subset of the market that has a meaningful impact on the particular ETP [exchange-traded product],” the filing stated.

The companies even cited examples of similar investment instruments for gold as the commodity is also traded on various markets.

“For instance, orders approving listing applications of ETPs that invest in gold bullion focused on the spot and futures market, even though gold is traded on a number of different market segments. Focusing on the spot market is appropriate because the spot market is the market to which the particular ETP would look to determine its [net asset value],” the filing added.

The asset management firm first filed for the Bitcoin and T-Bill backed fund in May. However, the decision to its proposal was pushed back by the regulator in September.

The notice by the financial watchdog came only a week after its rejection of a similar ETF proposed by Bitwise in conjunction with NYSE Arca. Citing concerns about market manipulation and a lack of surveillance-sharing agreements, it put the burden of rejection on NYSE Arca, which is also a part of this proposal.