New York Stock Exchange Arca submits documents to 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 Bitcoin-based trust (Bitcoin) Exchange-traded products (ETP).

In the proposed rule changes with the U.S. Securities and Exchange Commission and NYSE Arca suggested List Bitwise Bitcoin ETP Trust stocks.

The proposal clarified that each share of the trust will be represented by a fixed “indivisible unit of beneficial ownership”, allowing shares on the stock exchange to return their value based on the market price of Bitcoin.

In addition, the trust will be operated by two third-party partners who will serve as trustee, manager and transfer agent of the trust. According to the record:

“Under normal circumstances, the only asset of the trust is bitcoin, and in limited circumstances it is cash. The trust will not use derivative instruments that may expose the trust to counterparty and credit risks.”

After the U.S. Securities and Exchange Commission approves the rule change, the Bitwise Bitcoin ETP Trust of Arca of the New York Stock Exchange will handle all “bitcoin (rather than cash) ordinary fees, seeking to ensure that the trust holds the required bitcoin per share quantity. ”

On October 14, Bitwise applied to the New York Stock Exchange Arca for a BTC ETF, which according to Matt Hougan, Bitwise’s chief investment officer, holds “actual BTC”.The document outlines Bitwise’s intention to register its 1,000 Bitwise shares Bitcoin ETP trust with an issue price of up to $25The company first applied for the Bitcoin Exchange Traded Fund (ETF) registration with the US Securities and Exchange Commission in January 2019, but the registration was later withdrawn due to concerns raised by the committee:

“We are currently working to answer the questions raised by the US Securities and Exchange Commission in our initial 112-page response. We are still fully committed to the development of Bitcoin ETP.”

It is expected that the US Securities and Exchange Commission will announce the approval or disapproval of the proposed rule change within the next 45 days after soliciting and reviewing opinions based on the documents.

related: The chairman of the US Securities and Exchange Commission redoubled his efforts and told crypto companies “Come in and talk to us

In September, SEC Chairman Gary Gensler urged Encryption companies register with regulators, Which led to the submission of a large number of proposals.

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

Gensler stated that encryption can be a “catalyst of change” within the established framework, which can be achieved through regulatory clarity:

“If there are securities on these trading platforms, according to our law, they must register with the committee unless they are eligible for exemption.”