The US Securities and Exchange Commission (SEC) has yet again delayed their decision on whether to approve Wilshire Phoenix’s proposal for Bitcoin as well as US Treasury bond exchange-traded funds (ETF). According to the watchdog agency, a comprehensive decision will be communicated in Feb.. 26, 2020, CoinDesk reports.
In a press statement issued on Friday, the regulator stated that they are still assessing the proposal submitted earlier this summer and have committed themselves to making a conclusive decision on whether to approve or dismiss the Wilshire Phoenix’s ETF proposal on Feb. 26, 2020.
For two years now, the commission has rejected over 12 Bitcoin ETF applications pointing out the issues like market manipulation as well as surveillance sharing as the main aspects that should be addressed before an ETF application can be approved.
According to Wilshire Phoenix founder and head William Herrman, his firm is confident that it has addressed these aspects fully. Herrman says that his firm’s proposal which has been filed with NYSE can be described as a multi-asset trust that will safeguard it from Bitcoin’s price fluctuations.
Whenever volatility enhances, the trust will instantly rebalance itself and lessen its exposure to Bitcoin while enhancing Treasury bills exposure. Similarly, when volatility is low, exposure to Bitcoin will increase while reducing that of Treasury bills.
Herrman explains that on Dec 18, his firm also submitted a comment letter to explain the concerns raised by the SEC. The founder says that the comment letter expounded how Wilshire Phoenix’s ETF will be different from a Bitcoin-based ETP application.
Given the uncertainty, it is still unclear if the SEC will approve a Bitcoin ETF any time soon. The regulator recently rejected a Bitcoin ETF application by Bitwise Asset Management raising the same concerns. However, the regulator is reviewing that rejection but it is still unclear when a decision will be reached and communicated.