Blockchain Training Institute: Although there are dozen bitcoin ETF proposals that are marked down by the US Securities and Exchange Commission(SEC), this young firm is in high hopes that SEC would give a green signal.
Wilshire Phoenix is a New York-based company in association with the NYSE Arca has filed a United States Bitcoin & Treasury Investment Trust ETF. This firm will invest both bitcoin and U.S. Treasury securities, which is referred to as T-bills.
“Our proposed bitcoin-related ETF is quite different from those that have previously been submitted to the Commission for approval. To name just a few distinctions, the composition of the Trust is very different. Our Trust is a multi-asset trust (bitcoin and T-Bills), as opposed to just bitcoin,” quoted William Herrmann, founder and managing partner, Wilshire Phoenix.
However, SEC has rejected multiple proposals considering the firm’s age, the risk to investors and exposure to digital assets. Few of the firms have withdrawn the filing proactively.
Herrmann also stated that “the CME’s Bitcoin Reference Rate will provide the data for bitcoin’s price in the Trust, rather than use an in-house price method “or one from any related party.”
A few concerns related to SEC will also be addressed by the Wilshire Phoenix. This is done by a surveillance sharing document. With regard to this, he added, “The CME has surveillance sharing agreements with both the CME futures market as well as the relevant portion of the spot market that forms the basis for the Trust’s bitcoin values. This addresses the SEC concerns about the lack of surveillance sharing agreements with the relevant spot market, which is something previous applicants have not been able to address.”
SEC began accepting comments on the firm’s proposal in late June. Recently, the agency started accepting comments on the proposal through Nov. 12, 2019.
Herrmann is being positive about the ETF proposal’s chances, saying “we developed the ETF consistent with investor protection as well as fair, orderly and efficient markets.”