NYSE Arca, a subsidiary of the New York Stock Exchange (NYSE) group, you want to list and operate a fund based on Bitcoin (BTC) exchange-traded products (ETP).
In a proposed rule change with the United States Securities Commission, NYSE Arca proposed to list shares of Bitwise Bitcoin ETP Trust.
The proposal clarifies that Each share of the fund will be represented by fixed “undivided beneficial ownership units”, which will allow the shares on the stock exchange to trade their value according to the market price of Bitcoin.
What’s more, the fund will be operated by two third party partners who will act as custodians, administrators and transfer agents of the fund. According to the presentation:
“Under normal circumstances, the only asset in the fund will be bitcoin and, in limited circumstances, cash. The fund will not use derivatives that may subject it to counterparty and credit risks. “
Following SEC approval for the rule change, NYSE Arca’s Bitwise Bitcoin ETP Trust will process all “ordinary fees in bitcoin (rather than cash), as a way of trying to ensure that the fund maintains the desired amount of bitcoin per share”.
On October 14, Bitwise had filed a BTC ETF on NYSE Arca, which according Bitwise chief investment officer Matt Hougan keeps “real BTC”. The filing outlines Bitwise’s intention to register 1,000 shares of its Bitwise Bitcoin ETP Trust with an offer price of up to $ 25. The company had first applied to register a Bitcoin exchange-traded fund (ETF) with the SEC in January 2019., which was later withdrawn amid concerns raised by the commission:
“We are currently working hard to answer the questions that the SEC posed in its 112-page response to our initial filing. We remain fully committed to the development of a bitcoin ETP. ”
The SEC is expected to announce its approval or disapproval of the proposed rule change in the next 45 days. after requesting and reviewing comments based on the submission.
In September, the SEC chairman, Gary Gensler, urged crypto companies to register with the regulatory body, which led to the submission of numerous proposals.
Despite years of resistance, The commission recently approved a Bitcoin strategy ETF presented by Valkyrie on October 26.
Congratulations to @ValkyrieFunds on the launch of its Bitcoin Strategy #ETF $ BTF!
Learn more about the US-listed Bitcoin futures ETF and how it invests in a new future: https://t.co/mDrWbHn0xI pic.twitter.com/rE5QibNWiB
– Nasdaq (@Nasdaq) October 22, 2021
Congratulations to @ValkyrieFunds on the launch of their Bitcoin Strategy ETF BTF! Learn more about the US-traded Bitcoin Futures ETF and how to invest in a new future
Gensler said that cryptocurrencies can be a “catalyst for change” within an established framework, which can be achieved through regulatory clarity:
“To the extent that there are securities on these trading platforms, under our laws they have to register with the Commission unless they qualify for an exemption.”
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