NYSE Arca, a subsidiary of the New York Stock Exchange (NYSE) group, wants to register and manage a fund based on Bitcoin Exchange Traded Products (ETP) Bitcoin (BTC).
In a rule-change proposal with the US Securities and Exchange Commission, NYSE Arca has proposed a listing of Bitwise Bitcoin ETP Trust shares.
The proposal states that each share of trust shares will be represented by “undivided real shares” so that shares on the stock exchange can exchange value in accordance with the market price of bitcoins.
In addition, the trust will be managed by two external partners who act as trustee, administrator and transfer agent. By deposit:
“Under normal circumstances, the only asset of the fund would be bitcoin, and in some cases, cash. The trust will not use derivatives that could expose the fund to counterparty and credit risk. ”
Following the approval of the SEC rule change, the NYSE Arcas Bitwise Bitcoin ETP Trust will view all “regular fees in bitcoins (instead of cash) as a way to ensure that the Trust has the required amount of bitcoins per share.”
On October 14, Bitwise applied for a BTC ETF at NYSE Arca, which, according to Matt Hoogan, Bitwise’s chief investment officer, “actually owns BTC.” The deposit indicates Bitwise’s intention to register 1,000 shares with the Bitwise Bitcoin ETP Trust at an offer price of up to $ 25. The company first filed an application to register a Bitcoin Trading Fund (ETF) with the SEC in January 2019, which was subsequently withdrawn. due to concerns raised by the commission:
“We are currently working hard to answer the questions raised by the SEC in a 112-page response to our initial application. We remain fully committed to the development of Bitcoin ETP. ”
The Securities and Exchange Commission is expected to announce its approval or rejection of the proposed rule change within the next 45 days following the request and consideration of comments based on the submission.
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In September, SEC President Gary Gensler urged crypto companies to register with the regulator, which led to many filings.
Despite years of opposition, the committee recently approved the Bitcoin strategy ETF presented by Valkyrie on October 26th.
Gensler said that cryptography can be a “catalyst for change” within a certain framework, which can be achieved through clarity of regulatory requirements:
“If there are securities on these trading platforms, according to our laws, they must register with the Commission, unless they qualify for an exception.”
