Regulation

Wilshire Phoenix ETP proposal published to SEC registry, starts the clock on public comment period and SEC decision

June 25, 2019, 5:49PM EDT

The U.S. Securities Exchange Commission (SEC) published a rule change proposal for Wilshire Phoenix Funds to list shares of its ETP on the NYSE Arca exchange. This marks the start of a public comment period before the SEC rules. 

The comment period will last 21 days. While the SEC has a total of 45 days from publication to decide, it can extend this period to 90 days

The Wilshire Phoenix ETP proposal hedges bitcoin with Treasury bills to control for volatility, re-allocating the portion of bitcoin to Treasury bills each month depending on the previous month's volatility. Wilshire Phoenix Founder and Managing Partner Bill Herrmann told The Block last month that it felt confident in the possibility of approval since the SEC has expressed concerns of volatility with a crypto ETP, and the fund mitigates that problem by grouping bitcoin with Treasury bills.

The Wilshire Phoenix ETP joins other ETF rule change proposals, like that of Bitwise Asset Management and VanEck/SolidX, both of which have seen multiple deadline extensions form the SEC. Some movement from the SEC on these proposals, whether in the form of decisions of delays, can be expected in mid-July.

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