The U.S. Securities and Exchange Commission (SEC) is reviewing its order issued final week pertaining to a rejected proposal for a bitcoin exchange-traded fund (ETF). The proposal was filed by NYSE Arca for the Bitwise Bitcoin ETF Trust. Meanwhile, the SEC can also be evaluating a proposed rule change for a special sort of bitcoin ETF.
ETF Order Stayed
The SEC has despatched a letter dated Oct. 15 to Intercontinental Exchange (ICE), the guardian firm of the NYSE, regarding its latest order disapproving NYSE Arca’s proposal to checklist and commerce shares of the Bitwise Bitcoin ETF Trust. This proposal was rejected on Oct. 9. “This letter is to notify you that, pursuant to Rule 431 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action,” the letter explains, including:
In accordance with Rule 431(e), the October 9, 2019 order is stayed till the Commission orders in any other case.
The letter continues, “The Office of the Secretary will notify you of any pertinent action taken by the Commission.”
Prior to the Oct. 9 rejection, ICE and Bitwise had been actively discussing their bitcoin ETF proposal with the SEC. The Commission emphasised that its disapproval “does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment.” This can also be not the primary time the SEC has taken this motion. In August final 12 months, the Commission did the identical with three orders for 9 bitcoin ETFs.
T-Bill Bitcoin ETF within the Running
Besides reviewing the order disapproving the proposal for the Bitwise Bitcoin ETF Trust, the SEC is at present evaluating one other proposed rule change filed by NYSE Arca. The alternate is in search of to checklist and commerce shares of the United States Bitcoin and Treasury Investment Trust.
The proposal was first filed with the company on June 12 and printed within the Federal Register on July 1. The alternate filed Amendment No. 1 to the proposed rule change on Oct. four, after which the SEC proceeded to solicit feedback from the general public. As of Oct. 10, the company says it has obtained 9 feedback on the proposal.
According to the modification, “the trust will have no assets other than (a) bitcoin and (b) short-term U.S. Treasury securities with a maturity of less than one year (‘T-Bills’).” Further, the belief will maintain U.S. dollars for brief intervals of time in reference to the maturity of the T-bills, the sale and buy of the underlying property, redemptions, if any, and bills of the belief.
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