SEC Postpones Wilshire Phoenix Bitcoin ETF Decision

The US Securities and Exchange Commission (SEC) has further delayed its decision for the proposed Bitcoin ETF, which was proposed by Wilshire Phoenix. Wilshire Phoenix is a New York-based investment firm which was established in 2018.

The article was updated on 07 January, 2020 by Amicus.

25 September, 2019 | AtoZ Markets - Now, the new rule will allow the firm to list shares of ETF on NYSE Arca. Earlier in June, the US SEC has announced that the public can comment on the proposed ETF within 21 days.

SEC New Rule for Wilshire Phoenix Bitcoin ETF

After getting the feedback from the public, the US SEC can make an initial ruling within 45 days. But the agency can extend it up to 90 days. According to a public filing published on 24 September, the US SEC documented that:

“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act. That requires, among other things, which the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices. It is to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”

Furthermore, the US SEC further notes:

“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved.”

A Long List of Bitcoin ETF Delays by US SEC

Unlike other Bitcoin ETF proposals, Wilshire also plans to hold positions in Bitcoin, short-term Treasury bills, and USD. The diversification in the portfolio would reduce the overall volatility and risks involved in the cryptocurrency market. As per the filing, the Wilshire Bitcoin ETF could be more efficient, convenient and less risky than investing money on Bitcoin alone.

In this way, it would be less similar to an ETF and more like private investments. That sold to investors to enable them to buy/sell bitcoin using traditional format.

Moreover, with the latest decision by the US SEC, the Wilshire Bitcoin ETF proposal joins the long list of failed attempts to get approval from the US SEC. The firm received only six comment letters yet. The commission is waiting for more comments on the proposal before it makes a further decision.

Additionally, the deadline to submit comments is due for 35 days. However, the SEC might extend this period for an additional 60 days if it determines a longer period is appropriate.

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