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Bitcoin ETF: SEC starts accepting public comments on updated Wilshire BTC ETF proposal

The U.S. Securities and Exchange Commission (SEC) has issued a risk alert to market participants who handle digital assets th
The U.S. Securities and Exchange Commission (SEC) has issued a risk alert to market participants who handle digital assets that qualify as securities.

Wilshire Phoenix and NYSE Arca have filed an update to their Bitcoin ETF application with US SEC on October 4th. According to the new amendment, Coinbase will act as custodian to the trust’s bitcoins. The SEC has repeatedly blamed potential market manipulation for not approving bitcoin ETF.

Coinbase will also confirm the availability of assets used to secure the trust within five business days from its monthly re-balancing. Wilshire, in its updated proposal, also draws SEC’s attention to the impact of the spot and futures market on the particular ETP. The document reads, “focusing on the spot market is appropriate because the spot market is the market to which particular ETP would look to determine its NAV.”

According to Wilshire, the same approach that was taken for gold ETFs should be considered for BTC ETFs. On October 9th, The SEC stated that BTC ETF filing from Bitwise Management firm and NYSE Arc did not meet the necessary requirements. Last month VanEck and SolidX withdrew their BTC ETF proposal.

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