SEC Extends Deadline for Wilshire Phoenix’s Groundbreaking Bitcoin and T-Bills ETF Proposal

SEC Decision Timeline and Details

The United States Securities and Exchange Commission (SEC) has decided to take a little extra time to review Wilshire Phoenix Fund’s innovative exchange-traded fund (ETF) proposal. As per their notice published on December 20, they will announce their decision by February 26, 2020. This marks a 240-day waiting period since Wilshire Phoenix’s last alteration to its proposal. Because who doesn’t love waiting, right?

Innovative Investment Approach

At the core of Wilshire Phoenix’s proposal is a unique investment strategy incorporating Bitcoin and U.S. T-Bills, creating a combo dish that aims to provide stability amidst the tumultuous waves of cryptocurrency. T-Bills, which are short-term debt obligations issued by the U.S. Treasury, are a safe harbor in a sea of Bitcoin volatility.

Understanding the Trust’s Composition

The proposed Bitcoin and Treasury Investment Trust would aim to offer security by blending these two asset classes. This duo is designed to not only attract investors who are wary of Bitcoin’s unpredictable pricing but also to introduce a certain amount of calmness to the investment climate:

• Bitcoin: The volatile star of the crypto world, offering potential returns and sleepless nights.
• T-Bills: The dependable workhorse, providing stability and peace of mind.

Extension Insights and Historical Context

The SEC has the ability to extend its decision-making period by an additional 60 days if deemed necessary. This should come as no surprise since the SEC has been known to drag its feet as if it’s at a leisurely Sunday brunch rather than a fast-paced financial market.

Wilshire Phoenix’s Unique Argument

In a letter addressed to Jill M. Peterson at the SEC, Wilshire Phoenix asserted that its ETF structure is different from past proposals. Their argument emphasizes that the dual asset nature of their trust could mitigate Bitcoin’s wild price swings. They asserted that the ETF shares would not serve as an accurate reflection of Bitcoin’s real-time pricing. In other words, it won’t mimic Bitcoin like a shadow — correctly but inevitably falling short when it comes to the actual rollercoaster of crypto performance.

The Bitter Truth About Bitcoin ETF Proposals

Despite some Bitcoin ETF proposals being rejected or withdrawn, the hunger for new options continues—the crypto market always has room for dessert. The SEC has previously expressed concerns about market manipulation and the need for proper surveillance with sizable regulated markets. SEC Commissioner Hester Peirce (affectionately termed “crypto mom”) even hinted that we might be waiting a while longer for a Bitcoin ETF to get the green light, suggesting they are cautiously handling these proposals like a toddler with a juice box.