September 27, 2023

SEC Postponed Decision Against Wilshire Phoenix Bitcoin ETF

The US Securities and Exchange Commission (SEC) postponed the decision on the application for the launch of a traded exchange-traded fund (ETF) for bitcoin from Wilshire Phoenix for February.

The regulator has already rejected more than a dozen suchapplications for the last couple of years. The main questions that the SEC representatives have come up with are possible market manipulation and trade supervision. However, Wilshire Phoenix claims to be able to solve these problems.

According to the founder and managing partnerinvestment firm William Herrmann, a feature of Wilshire Phoenix's application for creating a multi-asset trust, which will hedge the volatility risks of the first cryptocurrency.

In the event of a sharp increase in the rate of volatilityThe Bitcoin Trust will be automatically balanced and reduce the share of the first cryptocurrency, increasing the number of US Treasury bonds. When the turbulent period in the cryptocurrency market passes, then these bonds will be sold to increase investment in bitcoin.

Bitcoin price will be calculated usinga tool of the Chicago CME CF BBR exchange, which is based on the quotes of 5 US cryptocurrency exchanges - Coinbase, Kraken, itBit, Bitstamp and Gemini. According to Herrmann, it is these sites that provide most of the bitcoin trade with the US dollar.

It is unclear whether the SEC is ready for ETF approval atBitcoin, however, the Commission is considering other applications for launching such products. So, in late October, Kryptoin Investment Advisors filed a corresponding application. Also in November, the deadline for consideration of the application from Bitwise and NYSE Arca was postponed.