SEC has decided to accept public comments on the change of rules for the listing of ETF supported by the Bitcoin and treasury bill. The commission has agreed on the postponement of Bitwise Bitcoin ETF and VanEcK. The rule change proposal was published on Tuesday by SEC.
The proposed rule change will allow Wilshire Phoenix Fund to list shares of ETF on NYSE Arca. SEC has declared that the public can comment on the aforementioned matter within 21 days’ time period. After getting the public comments SEC can make an initial ruling within 45 days, and it can extend up to 90 days, although the proposal document needs to be issued in Federal Register before SEC starts getting inputs from the public.
For the new proposal, an agreement has been made where Coinbase Custody will hold $200 million insurance from a reputed insurer in case of theft from the cold and hot wallet for investment on Bitcoin.
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NYSE Arca and Bitwise has put an application for a different ETF case earlier, the decision for that is still pending. Last May NYSE Arca had put a request in front of SEC for the rule change that will allow listing shares in BTC investment trust that will be supported by cryptocurrencies and T-bill.
In the Bitcoin industry, ETF is seen from a different angle. The sector is quite hopeful about ETF as it thinks, ETF has the potential to attract institutional investors. If ETF gets a green signal from the SEC, it can boost the market and make it more stable.
Both NYSE Arca and Wilshire Phoenix approached SEC last month for the regulation change. So far SEC has postponed the decision on ETF requested by VanEck ETF and Bitwise thrice. During the last hearing, the decision was delayed until August 2019. If SEC approves the plea, then 2019 can prove to be a golden year for the cryptocurrencies.
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SEC has to act on three applications in total, including this, that can change the future of the cryptocurrencies forever. SEC has delayed for each decision several times, but it is interesting to see how long they can avoid coming to any conclusion.
