Wilshire Phoenix Revises its Bitcoin ETF Filing with the US SEC




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Wilshire Phoenix revises its BTC ETF

The US SEC has started accepting comments on the updated bitcoin (BTC) exchange-traded fund (ETF) proposal by Wilshire Phoenix Fund. The SEC unveiled this news on October 15 through an official document. Per the document, Wilshire Phoenix and NYSE Arca filed an amendment to their BTC ETF application.

According to SEC’s document, Coinbase Custody would act as a custodian of the trust’s BTC. However, unlike the first filing, the updated version is reportedly different. This is because Coinbase would be in charge of confirming the availability of assets used to secure the trust within five days after its monthly rebalancing.

The filing also mentioned how the SEC focused on spot and futures markets after approving ETFs for gold. As such, this move had a meaningful impact on the ETF even though gold is traded in various market sectors.

It noted that,

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],

Resistance to Price Manipulation

The filing also touched on concerns over market manipulation with the proposed ETF.

It stated that,

Since […] CME CF BRR is determined based on the price of Bitcoin on the Constituent Platform and no other exchanges, the Sponsor maintains that the proper ‘market’ that one should evaluate to determine whether the ‘market’ is inherently resistant to manipulation is the segment of the market formed by the Constituent Platforms. […] 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.

Wilshire Phoenix filed its updated application for a BTC ETF on October 4. The new filing replaces and supersedes the previous one; which the SEC had begun collecting comments on in June this year. At the time of writing, only six people have submitted their opinions on the proposal.

This news comes after a report unveiled that the SEC had started proceedings to deliberate on the approval or disapproval of the proposed rule change. Upon approval, this proposal would let NYSE Arca list and trade shares of Wilshire Phoenix’s BTC and Treasury investment trust.

Apart from this, VanEck and SolidX backed out of the BTC ETF race in September. This was after CBOE’s BZX Equity Exchange withdrew the ETF a month before the review deadline.

Do you think the SEC will approve the updated version of Wilshire Phoenix’s BTC ETF? Let us know in the comments below.