NYSE Arca Files With SEC To List Bitwise Bitcoin ETP Trust – News Couple

NYSE Arca Files With SEC To List Bitwise Bitcoin ETP Trust

NYSE Arca, a subsidiary of the New York Stock Exchange (NYSE) Group, wants to list and operate a fund based on Bitcoin (BTC) exchange-traded products (ETP).

In a rule change proposal with the US Securities and Exchange Commission, NYSE Arca has proposed listing the Bitwise Bitcoin ETP Trust shares.

The proposal states that each share of the trust stock will be represented by “undivided beneficial units of ownership,” allowing the shares on the exchange to match their value according to the bitcoin market price.

Furthermore, the fund will be operated by two external partners who act as trustee, administrator and transfer agent. By deposit:

“Under normal circumstances, the only asset of the fund would be bitcoin and, under limited circumstances, cash. The trust would not use derivatives that could expose the fund to counterparty and credit risk.”

Upon approval of the rule change by the SEC, NYSE Arca’s Bitwise Bitcoin ETP Trust will process all “normal fees in Bitcoin (instead of cash), as a way of seeking to ensure that the Trust retains the required amount of Bitcoin per share.” ”

On October 14, Bitwise applied for a BTC ETF with NYSE Arca, which… according to To Matt Hogan, Chief Investment Officer at Bitwise, holds “Actual BTC”. The deposit demonstrates Bitwise’s intent to register 1,000 shares of the Bitwise Bitcoin ETP Trust at an offer price of up to $25. The company first filed for a bitcoin trading fund (ETF) registration application with the Securities and Exchange Commission in January 2019, which was subsequently withdrawn amid concerns raised by the commission:

“We are currently working hard to answer the questions raised by the SEC in its 112-page response to our initial filing. We remain fully committed to the development of the Bitcoin ETP.”

The Securities and Exchange Commission is expected to announce its approval or disapproval of the rule change proposal in the next 45 days after requesting and reviewing comments based on the filing.

Related: The SEC chair is doubling down, telling crypto companies to come and talk to us

In September, SEC President Gary Gensler urged crypto companies to register with the regulator, which led to numerous proposal filings.

Despite years of resistance, the committee recently approved a Bitcoin Strategy ETF submitted by Valkyrie on October 26.

Gensler said that cryptography can be a “catalyst for change” within a specific framework, which can be achieved through regulatory clarity:

“To the extent that there are securities on these trading platforms, under our laws, they are required to register with the Commission unless they qualify for an exemption.”