New Bitcoin Exchange-Traded Fund (ETF) Proposal by BitWise and NYSE Arca Set to File Paperwork
NYSE Arca Would be Filing Paperwork for the Approval of a New Bitcoin ETF
Although the government of the United States remains paralyzed after a shutdown, companies in the financial and crypto space continue working. Earlier in January, the firm Bitwise Asset Management announced the intention to launch a Bitcoin ETF. Although the U.S. Securities and Exchange Commission (SEC) could take 240 to approve a proposal after it’s summited, this could become the first Bitcoin ETF to be approved by the regulatory agency.
The NYSE Arca would be filing the 19b-4 rule change proposal very shortly. Although it is currently not listed on the SEC website, the NYSE Arca filed the form some days ago.
Bitwise informed that the proposal for a Bitcoin ETF is different compared to other filings because there would be a regulated third-party that would work as the custodian of the Bitcoins held by the investors. Furthermore, the company explained that they would be gathering data from different crypto exchanges for determining the assets’ value.
There are some other modifications on the methodology to determine the price that would allow the proposed rule change to have more changes to be approved by the SEC. The intention is to prevent manipulation in the price of the digital asset and protect investors from it.
The proposal made by NYSE Arca has mentioned some issues about the impact that manipulation can have on the market.
Although the proposal has been already made, the SEC has not yet started working on it due to the government shutdown in the country. This is why the team at the SEC will be evaluating the proposal once the shutdown ends.
The most important and debated proposal presented by VanEck, SolidX and Cboe, has been withdrawn a few days ago due to the government’s shutdown that is affecting the SEC and its normal operation. The regulatory agency was expected to give a final decision regarding this ETF as soon as February 27.
Companies would have until May 25 to present a proposal if they want an ETF to be approved this year.