SEC Postpone the Wilshire Phoenix’s Bitcoin ETF to 26 February
The United States Securities and Exchange Commission (SEC) has postponed another Bitcoin ETF filed by Wilshire Phoenix. Wilshire Phoenix files the Bitcoin ETF earlier this summer. SEC postpones the ETF decision till 26 February 2020, will decide then whether to approve it or reject it.
SEC is known as the hater of Bitcoin ETF and has delayed or rejected more than dozens of ETF proposals in the last two years. The agency is concerned about the volatility and manipulation of the Bitcoin and cryptocurrency market. Once SEC is ensured about both the volatility and manipulation it would approve a Bitcoin ETF.
Wilshire Phoenix believes it found a way to tackle the volatility and manipulation of the market. Wilshire Phoenix founder and managing partner William Herrmann said in an interview that his company ETF filed with NYSE Arca is a multi-asset trust protects it against Bitcoin volatility.
If the volatility of Bitcoin price increase the trust will automatically rebalance itself to decrease the Bitcoin exposure and increase its exposure to Treasury bills and vice-versa.
The company also filed a comment letter on 18 December to satisfy these concerns. Herrmann told that the letter addresses how the exchange-traded product is structurally and fundamentally different from prior bitcoin-related ETP applications. He further added:
“The comment goes on to show how the two markets that are relevant to the Trust – referred to by the Commission as the ‘regulated markets of significant size’ – are the CME bitcoin futures market and the spot market composed of the five constituent exchanges from which pricing for the CME CF BRR is determined.”
It is very unclear that the SEC will approve any Bitcoin ETF in the near future. The latest rejection from the SEC is Bitwise ETF proposal. SEC commissioners are still reviewing the rejection still it is very unclear when they reach a decision.
