The United States SEC is set to make another ruling on a proposed Bitcoin ETF this Wednesday. Wilshire Phoenix, the company behind this Bitcoin dependent asset, will finally know the outcome of a filing process that started in mid-2019. It might as well shape the regulatory scene of Bitcoin ETF’s if blessed by the powers that be to launch this product.
To date, the SEC has not yet approved any bitcoin ETF application as all have failed to meet minimum requirements to trade in regulated markets. It is therefore very difficult to predict the ruling that will be made on Wednesday. However, Wilshire Phoenix is optimistic of a favorable decision by the SEC especially after its continuous effort in filing additional information on their proposal as late as last week. More so, William Herrmann, the Managing Partner of Wilshire was confident in a phone conversation with CoinDesk that the approval will take place.
In previous cases, Bitcoin ETFs were rejected by the SEC due to worries regarding market manipulation and the need for surveillance-sharing agreements came up. For a better outcome Wilshire has attempted to address those concerns in the latest proposal through rebalancing itself among U.S. Treasury bonds and Bitcoin due to cryptocurrency’s volatility.
With the latest amendments filed on 14th February on underwriters’ section, Wilshire Phoenix highlighted its intended number of shares and the maximum price for one. The firm settled for an initial ,8040 shares subject to review at the price of $2,500.
Does Wilshire Phoenix’s Bitcoin ETF Stand a Chance?
Representatives from Wilshire Phoenix, NYSE Arca and their law firms had a meeting with Commissioners Hester Peirce and Allison Herren Lee as documented in the public documents. It was observed that the SEC is paying attention to the filing. However, SEC’s opinion on the proposal was still opaque after the meeting of the companies’ representatives and the Division of Trading and Markets.
Herrmann emphasized on how beneficial the Bitcoin ETF would be by allowing more investors to safely access the crypto market. He said,
“We want to provide easy access to strategies that are often only limited to institutions or accredited investors,” Herrmann said. “Restraining who is able to invest in any product or strategy on the basis of socioeconomic status or for any reason is simply wrong. This leaves many exposed to sudden market volatility followed by likely losses due to lack of diversification.”
Wilshire Phoenix believes that creating multiple investment options is a goal of its overall strategy and is confident on acquiring the Bitcoin ETF soon. If all goes well, they plan on launching the gold ETF thereafter.