NYSE Arca is a subsidiary of New York Stock Exchange (NYSE) Group. It wants to list and run a trust based upon Bitcoin (BTC) exchange traded products (ETP).
NYSE Arca, in a rule-change proposal to the United States Securities and Exchange Commission (US Securities and Exchange Commission), proposed listing shares of Bitwise Bitcoin ETP Trust Trust.
The proposal clarifies the fact that each share of trust will be represented as a fixed “unit of undivided benefit ownership,” which allows the shares to trade on the stock exchange to recieve their value according to Bitcoin’s market prices.
The trust will also be managed by two third-party associates who will act as trustee, administrator, and transfer agent. According to the filing
“Under normal circumstances the Trust’s sole asset will be bitcoin and, in limited circumstances, cash. The Trust will not use derivatives which could expose it to credit and counterparty risks.
Upon approval by the SEC for the rule change, NYSE Arca’s Bitwise Bitcoin ETP Trust (rather than cash) will accept all “ordinary fees” in bitcoin. This is a way to make sure that the Trust has the right amount of bitcoin per share.
Bitwise filed for a BTC ETF registration with NYSE Arca on Oct. 14. Bitwise chief investment officer Matt Hougan stated that Bitwise holds “actual BTC” and the filing outlines Bitwise’s intention to register 1,000 shares in its Bitwise Bitcoin ETP Trust at an offering price up to $25. Bitwise had applied to register a Bitcoin exchange-traded funds (ETFs) with the SEC in January 2019. However, the application was later withdrawn by the commission due to concerns.
“We are currently working hard to answer the questions the SEC raised in its 112-page reply to our initial filing. We are fully committed to the creation of a bitcoin ETP.
After reviewing and soliciting comments, the SEC will announce its approval or disapproval of the rule change proposal within the next 45-day period.
Related: SEC chair doubles down and tells crypto companies to ‘come in, talk to us
SEC Chair Gary Gensler, who was a crypto business advocate, encouraged businesses to register with regulators in September. This led to numerous proposal filings.
Despite years of resistance the commission approved a Bitcoin Strategy ETF that Valkyrie filed on October 26.
@ValkyrieFunds deserves congratulations on the launch #ETF $BTF of its Bitcoin Strategy! Learn more about the U.S.-listed Bitcoin futures ETF and how it invests in a new future: https://t.co/mDrWbHn0xI pic.twitter.com/rE5QibNWiB
— Nasdaq (@Nasdaq) October 22, 2021
Gensler stated that crypto can act as a catalyst for change within a defined framework. This can be achieved by regulatory clarity.
“To the extent there are securities on these platforms, they must register with the Commission under our laws unless they qualify to an exemption.”