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Is The Wilshire Phoenix Bitcoin ETF Different Enough To Be Approved By The SEC

Bitcoin ETF’s have been a topic of discussion between the SEC and crypto stakeholders. So far, none of the BTC ETF’s has been approved by the regulator despite a number of proposals being tabled over the course of 2019. Wilshire Phoenix, a NYC based Financial Services provider, however claims that they are about to change this trend with their newly proposed Bitcoin ETF.

The firm had filed in May to launch the BTC Treasury Investment Trust under the NYSE Arca. According to Wilshire Phoenix, their investment strategy gives them an upper hand against competitors in the same niche. This is because they plan on holding a portfolio made up of both Bitcoin and Government Treasury bills. It therefore follows the SEC will consider their Bitcoin ETF owing to diversification in the fund with more stable investments;

William Herrmann, a managing partner at the firm, was keen to note this,

“To name just a few distinctions, the composition of the Trust is very different. Our Trust is a multi-asset trust (bitcoin and T-Bills), as opposed to just bitcoin.”

Cryptocurrency market volatility has made the SEC wary of approving ETF’s related to digital assets in the past. A couple of firms have even had to withdraw their filings for an ETF after they saw it as a futile exercise given the SEC’s current stance on crypto coins.

The Wilshire ETF

Herrmann highlighted some of the Wilshire ETF advantages including features that make it to stand out. The managing partner pointed out that Wilshire’s ETF ecosystem is designed to rebalance the weight of digital assets and T-bills based on volatility. Basically, the index will automatically rebalance to hold more government securities if BTC is volatile and vice versa.

Furthermore, the indexing will be highly transparent as both Thomson Reuters and Bloomberg portals will update the stats in a timely manner. The indexes used will also be guided by the CME Bitcoin Reference Rate; this addresses the SEC concerns on surveillance given the regulations in CME future markets.