Following the postponement of the decision on the VanEck and Bitwise Bitcoin ETF proposals, the SEC has announced that it is accepting public comments for rule changes to list a proposed exchange-traded fund (ETF) backed by bitcoin and Treasury bills.
The proposal is sponsored by the United States Bitcoin and Treasury Investment Trust, managed by Wilshire Phoenix Funds and NYSE Arca.
According to the proposal, The United States Bitcoin and Treasury Investment Trust would offer shares as well as invest exclusively in bitcoin and short-term U.S. Treasury securities. As a result, the SEC published a proposal for rule changes earlier today Tuesday to allow for the listing of the new exchange.
This is a different application from the ETF proposal earlier submitted by NYSE Arca and Bitwise for which a decision is yet to be reached. For the new proposal, an agreement has been reached with Coinbase Custody to hold the investment’s Bitcoin with a $200 million insurance against theft from its hot or cold wallet from reputable insurers.
ETFs are considered to be a critical aspect of the Bitcoin industry. It is one of the components that are expected to attract institutional investors who will significantly boost the market and make it more stable than it currently is with predominantly individual investors. This is the third proposal so far after the Bitwise and VanEck applications.
The SEC has this year alone postponed a decision on the Bitwise and VanEck ETF applications three times so far. The decision on the applications was postponed to August 2019 during the last sitting. If the applications get approved this year, it could significantly contribute to making the year 2019 one of the best for cryptocurrency in the history of its existence.
The SEC had also requested for public comments on both Bitwise and VanEck applications but has still not made up its mind. With the current public comment request, the SEC is expected to make an initial ruling in 45 days with a possible extension of 90 days. With this proposal, the SEC has three applications to look into and make a decision that will affect the cryptocurrency industry for years to come.