SEC Starts Review of NYSE Arca’s Bitcoin ETF


The U.S. Securities and Exchange Commission started reviewing a rule change proposal for NYSE Arca’s Bitwise Bitcoin ETF Trust.

The United States Securities and Exchange Commission (SEC) began examining a rule change proposition for NYSE Arca’s Bitcoin (BTC) exchange-traded fund (ETF) on Feb. 11, according to a main file published today, Feb. 15.

According to the notice, the NYSE Arca exchange filed a guideline modification proposal to list and trade shares of the Bitwise Bitcoin ETF Trust under its NYSE Arca Rule 8.201-E on Jan. 28.

The SEC is now expected to provide a preliminary decision to authorize or turn down the proposition within 45 days beginning with the day of publication of the statement, Feb. 15. In the event that the securities regulator discovers it requires more time to examine the proposition, it might extend review period for up to 90 days and ought to publish the reasons for postponing the choice.

SEC RegulationAs the notice declares, the public can send feedback on the rule modification proposition by March 8, 2019, in the kind of written information, view and arguments.

NYSE Arca and Bitwise revealed strategies to release Bitcoin ETFs in January. NYSE Arca supposedly applied for permission to release a variety of Bitcoin-related ETFs throughout one week in 2018. The exchange intended to launch 5 different ETFs connected to both bull and bear futures contracts noted on NYSE Arca. The ETFs would apparently be linked to the price of Bitcoin futures on the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).

In turn, crypto index fund company Bitwise Asset Management submitted an ETF application on Jan. 10, with the proposed ETF tracking Bitwise Bitcoin Total Return Index that is “determined based upon the prices of bitcoin that the Index Provider derives from bitcoin price transactions taking place on cryptocurrency exchanges.”

As Cointelegraph previously reported, the SEC’s operations have actually been limited due to the U.S. government shutdown. On Jan. 23, CBOE’s BZX Equity Exchange withdrew its request for a guideline change by the SEC for a Bitcoin ETF backed by financial investment company VanEck and financial services company SolidX. A CBOE representative informed Cointelegraph that the choice to withdraw its demand was a result of the shutdown, however that the exchange plans to re-submit at a later date.

Just Recently, Brian Quintenz, a Commissioner at the United States Commodity Futures Trading Commission (CFTC) revealed scepticism towards the SEC’s rigorous stance on Bitcoin ETFs, particularly mentioning the SEC’s relationship to rate adjustment. The Commissioner argued that potential cost adjustment should not be a barrier to the SEC approving a Bitcoin ETF.

Speaking on a panel with Quintenz, SEC Commissioner Heister Peirce, known as “crypto mommy” in the crypto community, appeared to concur with the CFTC Commissioner, noting that the SEC can still “construct products on top of” unregulated markets.


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