Wilshire Phoenix Amends Bitcoin ETF Proposal
Investment management firm, Wilshire Phoenix, has refiled their Bitcoin ETF proposal with the SEC to include a few new clauses and arguments in favor of the product. The new filing completely supersedes the previous one, which could warrant the SEC delaying their decision to closely study the amendment, October 16, 2019.
Bitcoin Treasury ETF Updates
Wilshire Phoenix’s unique product combining the capital appreciative properties of Bitcoin with the risk-free return of treasury bills has taken a new spin in its search for approval.
According to a new SEC filing, Coinbase Custody still remains as the custodian for the fund, but Wilshire has introduced a clause that states Coinbase will also be given five business days to confirm whether the assets securing the fund’s value are available for redemption or otherwise.
In addition to this, the fund believes that the SEC should be looking at the approval process for gold ETFs with regards to Bitcoin. The gold ETF was approved after the SEC confirmed that the spot and futures market both drive the price of gold.
Wilshire Phoenix believes this model should be applied to their Bitcoin ETF proposal, as the spot market and CME futures are both important price drivers. The fund uses the CME CF Bitcoin Reference Rate to help them arrive at the Net Asset Value (NAV) of the fund.
The market is hopeful that this ETF proposal is granted approval after news of VanEck withdrawing its retail ETF proposal was announced.
Bitcoin ETF Still a Pipedream
It is entirely possible that we will see a Bitcoin ETF launched – just probably not anytime soon. The chances of a Jay Clayton led SEC approving a Bitcoin ETF are incredibly slim, and his current regime as the SEC chief is, more or less, set in stone till May 2022.
This idea will help with the mainstream push for Bitcoin, but it isn’t all that practical. A Bitcoin ETF is essentially a scheme whereby an easily acquirable asset is pushed through unnecessary, bureaucratic processes before being unveiled to the public for an excessive fee.
Bitcoin is meant for mass consumption by pushing regulatory requirements out of the picture. And while no regulation at all is neither possible nor logical, a Bitcoin ETF defeats the purpose of holding Bitcoin (aside from capital appreciation).