NYSE Arca Seeks to List a BTC and Treasury Bill-backed Fund




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NYSE Arca, a stock exchange headquartered in Chicago has filed an application for a rule change with the US SEC. The exchange aims to list shares in a proposed Bitcoin fund dubbed “the United States Bitcoin and Treasury Investment Trust”.

This project will be managed by Wilshire Phoenix Funds. The investment trust will serve the function of investing in BTC and short-term US Treasury securities.

The firm filed the application yesterday. It states,

NYSE Arca, Inc., proposes (1) to amend NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) to provide for issuance and redemption of such securities for the underlying commodity and/or cash, and (2) to list and trade the shares of the United States Bitcoin and Treasury Investment Trust under NYSE Arca Rule 8.201-E, as proposed to be amended.

NYSE Arca also explained that it would hire Coinbase’s custody arm to hold the trust’s BTC. The Chicago-headquartered exchange also unveiled that through working with Coinbase, the trust had obtained $200 million of insurance against theft from its hot or cold wallets.

The Push for a BTC-backed ETF

This filing is separate from NYSE Arca’s and Bitwise’s efforts of pushing for the approval of a BTC-backed exchange-traded fund (ETF) by the SEC. Wilshire filed a prospectus for the fund inn January. However, yesterday’s filing marked the beginning of the regulatory approval process. The SEC now has 45 days to approve, reject or postpone the proposed rule change. According to the filing, the agency has up to 90 days to make a final decision on the matter.

As the exchange continues pushing for a way streamline BTC’s uses, the SEC is still hesitant to approve a BTC-backed ETF. In the past week, the agency postponed the date for deciding the fate of Bitwise’s application. The entity made a similar decision regarding Cboe’s application.

Justifying why it delayed making a decision on the BTC ETF approval, the SEC claimed that it needed more time to review the potential rule change.

SEC’s Decision on BTC-backed ETFs Continues Affecting the Bitcoin Market

After the SEC deferred making a decision on Bitwise’s BTC-backed ETF application, the bitcoin market plunged. Before the agency decided to delay its decision, BTC was trading at approximately $8,335. Afterward, BTC’s price dropped by 5 percent to reach $7,900. A week later, BTC is still trading under $8,000. At the time of writing, BTC is trading at $7,855 according to data from Coinmarketcap.

Do you think the SEC will approve NYSE Arca’s application for a rule change? Let us know in the comment below.