The US Securities and Exchange Commission (SEC) had postponed the decision on one more Bitcoin ETF proposal to next February 2020. This proposal was filed by Wilshire Phoenix in 2019 summer; however, the SEC needs more time to decide this proposal. The decision was postponed to February 26, 2020.
Besides, the regulatory body was reluctant to acknowledge any Bitcoin ETF, referring to investor privacy and market manipulation as explanations for dismissing every ETF bid over the past two years.
Until now, the regulator had not approved even a single ETF proposal. Moreover, SEC has been cautiously postponing the decision for as long as possible before dismissing them. The regulatory body was worried about the unregulated status of cryptocurrencies, which might lead to price fluctuations.
The Founder and Managing Partner of Wilshire, William Herrmann, gave affirmation that the ETFs are protected from Bitcoin’s price unpredictability as a result of a multi-asset feature.
On December 18, a comment letter was filed addressing “how the [exchange-traded product] is structurally and fundamentally different from prior Bitcoin-related ETP applications,” remarked Herrmann. Its objective was to remove the concerns laid by SEC.
“The comment goes on to show how the two markets that are relevant to the Trust—referred to by the Commission as the ‘regulated markets of significant size’—are the CME Bitcoin futures market and the spot market composed of the five constituent exchanges from which pricing for the CME CF BRR is determined.”
Besides, recent developments recommend that structuring proposals on interval funds, one that enables investors to exit or enter positions just once per period rather than ETFs, may get a possibility of winning approval. The SEC officials are inspecting that dismissal, however unsure when the decision will be made.