US SEC postpones ruling on another Bitcoin ETF proposal, how is this proposal different than in the past?

According to Cointelegraph reported on December 23, the US Securities and Exchange Commission (SEC) has postponed a decision on the updated Bitcoin and US Treasury Exchange Trading Fund (ETF) proposals submitted by the Wilshire Phoenix Fund.

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In a statement issued on December 20, the regulator stated that it would approve or disapprove the fund 240 days before February 26, 2020, the latest proposed rule change by Wilshire Phoenix decision.

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Fund will consist of two assets, Bitcoin and U.S. Treasury bills

As previously reported, Wilshire Phoenix's proposal went through a typical process of public comment, subsequent amendments, and proposed rule changes.

The investment company's proposal is to establish a Bitcoin and Treasury Investment Trust, whose shares will be listed and traded on the NYSE Arca.

The proposed trust fund will consist of two assets: Bitcoin and U.S. Treasuries, the latter being short-term government debt backed by the U.S. Treasury.

As stated by the SEC, if the regulator deems it necessary and appropriate, it may choose to extend the period for issuing directives that approve or disapprove any proposed rule change by up to 60 days.

The proposed rule amendments first submitted by Wilson Phoenix were published in the Federal Register for public comment on July 1, 2019. It subsequently released a revised version in mid-October, replacing previous applications.

When determining the deadline of February 26, 2020, the SEC used an earlier date as the starting point for calculation, at the time it said:

"The date of the announcement of the proposed rule change is July 1, 2019. December 28, 2019 is 180 days from that day, and February 26, 2020 is 240 days from that day (with an extension of 60 days) ). "

Wilson Phoenix: This ETF is fundamentally different from previous proposals

On December 18, Wilson Phoenix said in a letter to Jill M. Peterson, Assistant Secretary of the Securities and Exchange Commission, that the company's proposal "is structurally and historically related to Bitcoin. ETP applications are fundamentally different. "

The company's main argument focuses on the fact that the trust fund consists of two asset structures, bitcoin and U.S. Treasury bonds, which on the surface not only protect investors in the trust fund from cryptocurrency fluctuations, but also limit the product's Impact of independent bitcoin spot and derivatives markets. Wilson Phoenix wrote that, as part of the trust fund consists of government bonds:

"The stock price issued by the trust fund will not accurately represent the independent bitcoin pricing of bitcoin futures on the index constituent exchanges or the Chicago Mercantile Exchange (CME). This fact further proves that the trust fund does not trade Will have a major impact on the price of bitcoin futures on the index constituent exchange or the Chicago Mercantile Exchange. "

As Cointelegraph previously reported, one of the two Bitcoin ETF proposals was rejected and the other was withdrawn this fall, but this did not prevent a new ETF listing application from being submitted to the regulator.

In the past, when the SEC reviewed bitcoin-based ETF proposals, it had emphasized concerns about "insufficient resistance to price manipulation" and the lack of regulatory sharing agreements with larger regulatory markets.

SEC member Hester Peirce, known as the "crypto mom", warned the industry that bitcoin ETFs could take "a long time" to get approval from the agency. She also joked that the SEC "is still stifling ETFs with personalized care, as if they were still infants."

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