Wilshire Updated Bitcoin ETF Proposal

Wilshire Phoenix Fund updated its Bitcoin (BTC) exchange-traded fund (ETF) proposal. And after that, the United States Securities Exchange Commission (SEC) has started to accept public comment about it again.

In the official document released on October 15, investment management firm Wilshire Phoenix and exchange NYSE Arca filed an amendment. And it is for their Bitcoin ETF application to reflect the latest circumstances.

Moreover, according to the proposal, Coinbase Custody will play the role of a custodian of the trust’s Bitcoin. But compared to the first application, the updated one states that Coinbase will confirm the availability of the assets. They used these said assets to secure the trust within five business days from the beginning of its monthly rebalancing.

Wilshire and SEC

Also, Wilshire draws the SEC’s attention after the approval of ETFs for gold. The regulator concentrated on spot and futures markets. And they all have a meaningful effect on the particular ETP – although gold traded in other market segments.

It stated, “Focusing on the spot market is appropriate because the spot market is the market to which the particular ETP would look to determine its NAV.”

As the document implies, Bitcoin ETFs should have a very much alike approach. And Wilshire explained that the trust is using the CME CF BRR to know the NAV of the Bitcoin held. This exclusively utilizes its Constituent Platforms.

“CME FR BRR is determined based on the price of Bitcoin on the Constituent Platform and no other exchanges.”

A segment of the market formed by the Constituent Platforms states, “The Sponsor maintains that the proper market that one should evaluate to determine whether the market is inherently resistant to manipulation.”

In addition to that, there is an independent examination of the methodology (Paine & Knottenbelt) for the CME CR BRR. And it supports the Sponsor’s assertion that the CME CF BRR is not receptive to manipulation.