The United States Securities and Exchange Commission (SEC) has instituted proceedings to decide whether or not to approve a proposed rule change by Wilshire Phoenix to list and trade shares of their Bitcoin and Treasury Investment Trust on NYSE Arca.
According to a filing published by the SEC today, the regulator is still seeking public comments on the ETF which differs from other applications in the sense that it also wants to offer investors exposure to Treasury Bills alongside Bitcoin.
However, the SEC has raised questions regarding the proposal, including claims made by the applicants that the CME bitcoin reference rate which they plan to use for the proposed ETF is not susceptible to manipulation.
Either way, the regulatory body is expected to announce its decision on the ETF proposal within the next 35 days, which is October 19.
Comments on the Wilshire Phoenix ETF
While the SEC will have the final say regarding the proposed rule change by Wilshire Phoenix, public comments which are usually invited to get a broader perspective on the matter, also play a part in the decision.
So far, Wilshire Phoenix’s proposal has received six comments with three apiece standing for and against the SEC approving the application.
The three who wrote in favor of approval expressed concerns that the U.S regulator is already falling behind in the crypto innovation, albeit an anonymous user who wrote,
“FOR GOD SAKE just approve this bitcoin ETF --- THIS IS BEEN GOING ON FOREVER.”
Meanwhile, those who wrote to the SEC against approval agreed with recent comments by SEC Chairman, Jay Clayton that some questions need to be answered before the regulator can give the green light to a Bitcoin ETF.
Avinash Shenoy, one of those who wrote in that respect had asked,
“Is this merely a Bitcoin ETP with the cover of T-Bills to give it some legitimacy?"
While the SEC rules on that, Stmarket.co reported last week that another Bitcoin ETF applicant, VanEck and SolidX pulled their proposal with yet another asset manager, Bitwise, opting to wait for the SEC to announce a decision in mid-October.