Bitcoin ETFs and SEC: ‘Last Man Standing’ Wilshire Phoenix Amends Bitcoin Filing

October 16, 2019 | Digital Assets, News

The Wilshire Phoenix Bitcoin ETF has amended its Bitcoin ETF Filing with the SEC.

The SEC has invited public comments on the bitcoin exchange-traded fund proposal filed by Wilshire Phoenix Bitcoin ETF. This action follows a revised filing by the fund and NYSE Arca on October 4.

After the SEC’s rejection on October 9 of the bitcoin ETF application by Bitwise Asset Management and NYSE Arca, the only active Bitcoin ETF proposal pending before the regulator was that of Wilshire Phoenix and NYSE Arca.

Wilshire Phoenix Bitcoin ETF – amendment points

It amended the details on custody of the ETF’s bitcoin assets. Coinbase Custody will confirm the availability of assets within five business days from the time of the fund’s monthly rebalancing.

Wilshire Phoenix asserted that it will use the CME CF BRR as the basis calculating NAV. It claimed in its filing that “an independent examination of the methodology (Paine & Knottenbelt) of the CME CF BRR, supports the Sponsor’s assertion that the CME CF BRR is not susceptible to manipulation.” This addresses a key concern of the SEC regarding manipulation of prices of the digital currency.

The regulator relied on the spot and futures market for fixation of NAV in the case of gold ETF’s.

Wilshire Phoenix asserted that bitcoin ETF’s should be treated similarly.

“For instance, orders approving listing applications of ETPs that invest in gold bullion focused on the spot and futures market, even though gold is traded on a number of different market segments. Focusing on the spot market is appropriate because the spot market is the market to which the particular ETP would look to determine its [net asset value],” the filing added.

SEC approval: Bitcoin ETF’s find the going rough

In late September, the Chicago Board Options Exchange’s BZX Equity Exchange withdrew its VanEck/SolidX Bitcoin exchange-traded fund (ETF) proposal.

The much-anticipated verdict on the bitcoin ETF application by Bitwise Asset Management and NYSE Arca was also negative.

In the circumstances, it is still unclear whether a bitcoin ETF will finally see the light of day. By present trends, it is unlikely that the SEC will greenlight the Wilshire Phoenix application.

[Related Story: SEC Rejects Bitcoin ETF Proposal from Bitwise ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Digital Assets: In Reforms Push, China Mulling Rules for New Digital Banks, Including by Foreigners
January 17, 2020     Digital Assets, Regulations

China is working on guidelines for the establishment of online-only banks. Chinese regulators are pushing for the establishment of new, 100% digital banks to reduce risk in the country’s financial…

ESG: Cerulli Report Says 2020 To Be “Pivotal” For Retail ESG Investing
January 17, 2020     ESG and Sustainability, Special Reports

New regulations, products, and money will make 2020 a banner year for ESG in Europe Sustainable and responsible investing around the themes of Environment-Social-Governance (ESG) will come into its own…

The DailyAlts Playbook: Short Strategies for Tesla and Apple, where Ken Griffin was on Wednesday, Kyle Bass’ Hong Kong Worries, and the GAO’s Statement on Donald Trump
January 17, 2020     Investments, News, The DailyAlts Playbook

Today, the DailyAlts Playbook talks about short strategies for Tesla and Apple,  where Ken Griffin was on Wednesday, Kyle Bass’ Hong Kong worries, and the GAO’s statement on Donald Trump.

Private Equity: KKR Outlook 2020 Suggests Volatility Ahead
January 17, 2020     Investments, News, Private Equity

Private equity leader KKR released its latest macro outlook this week. Head of Global Macro & Asset Allocation Henry McVey outlines where KKR thinks the best opportunities will be this…