The ETF Proposal Still Has A Chance After Facing The Rejection From SEC


As per the previous reports, the Security Exchange Commission of US has postponed the decision on the proposal of Wilshire Pheonix to create an ETF based on Bitcoin, US $ and current treasury bills.

ETF is the exchange-traded fund, mostly used as security to trade in exchanges. As per the announcement, the decision on ETF proposal made by the Wilshire Pheonix company in the partnership with NYSE Arca is been delayed. The amended proposal was filed by the company on 4th October. Even the proposal on another ETF made by Bitwise Asset management has been rejected, and the reason was its incapacity to meet legal obligations.

All these negative comments have a probable effect on the price fluctuations of BTC. Although the pricing of BTC since the last week has maintained a position between $8,500 to $8,650. Apart from all the speculations, no one can doubt Bitcoin’s ability to recover. In this case, as well, the price fluctuations are not going get affected through rejections as from last 12 months, the exchange market has seen several rejections to the Bitcoin-based ETF proposals, forcing them to expect less in the matter. As per one of the known analysts, Alex Kruger, the SEC has decided on ETF’s approval long ago.

Although as per present scenario, the US, security exchange commission has announced that they are requesting for public comments on Wilshire’s proposal. The filing was published on Tuesday and states the amended proposal has possible solutions for issues related to allotment and redemption of the securities and along with it, the proposal addresses the issues related to trading/listing of the shares of the fund.

Also, the filing states that the fund will have Coinbase Custody as its custodian to take care of the Bitcoin funds held by the trust. The notice published on Tuesday adds important information regarding the Bitcoin custody which says that within 5 days, Coinbase would confirm the bitcoin amount held by them through attestations. These 5 days would begin soon after monthly rebalancing of the trust.

The supply of future products of Bitcoin get continued in the US is also confirmed by the changed rules of the amended proposal. The supply will get ensured by Intercontinental Exchange and CME, instead of Cboe and CME. The company has launched its future products at the beginning of the year. These news have made users of trading platforms really excited.

Overall, the concerns of SEC like market manipulation in the crypto market seems to get addressed through the amendments made in the changed proposal.

The analysis done by the commission is noted by the sponsor which takes care of the market’s resistance to a manipulation activity. Instead, the entire market, certain sub-sections of the market are analysed particularly through the commission in some situations to observe their individual effects on a specific exchange-traded product (ETP).

For example, despite the trade of gold takes place in multiple markets segments, the orders approve the listing of such ETP applications due to their investments done in the bully market of gold and pay attention to the futures and spot market. The net asset value of an ETP can be determined by the spot market appropriately.

The notice published on Tuesday states that the flaws of the original filing are covered and prevented completely in the amended proposal filed on 4th October.

Priorly, the SEC had denied the period of comment on the Wilshire’s proposal in June giving the reason that evaluation of the proposal is going on.

As per the filing, after the publication of notice in the federal register, within 21 days all the comments are required to be submitted by the public members. Soon after the filing of publication takes place in the register, the SEC will have an extendable limit of 45 days to pass an initial decision.