NYSE Arca files for rule-change proposal to list Bitcoin ETP trust
NYSE Arca, a New York Stock Exchange subsidiary firm, has announced its plans to list and run a Bitcoin exchange-traded products (ETP) Trust.
In a proposal filed with the US Securities and Exchange Commission (SEC), NYSE Arca stated that it was planning to list the shares of the Bitwise Bitcoin ETP Trust.
Launching a bitcoin ETP Trust
The proposal adds that every share of the ETP trust will be represented using fixed units of “undivided beneficial ownership.” This will allow the shares listed on the stock exchange to match the value concerning the price of Bitcoin.
Besides, the Trust will be run using two third-party associates who will also be custodians, administrators and transfer agents.
The filing states that “Under normal circumstances, the Trust’s only asset will be bitcoin, and, under limited circumstances, cash. The Trust will not use derivatives that may subject the Trust to counterparty and credit risks.”
If the proposal is approved by the SEC, the Bitcoin Bitwise Bitcoin ETP Trust will take charge of processing all the “ordinary fees in bitcoin (rather than cash) as a way of seeking to ensure that the Trust holds the desired amount of bitcoin-per-share.”
SEC on approving bitcoin funds
The SEC has been actively involved in approving funds affiliated with Bitcoin. In the next 45 days, the financial market regulator is expected to approve or disapprove the proposal.
In September, the chair of the SEC, Gary Gensler, stated that firms that want to launch crypto funds needed to register with the commission. This increased a lot of buzz, and many firms went ahead and filed applications for Bitcoin funds.
Last month, the SEC approved the first Bitcoin futures ETF. Other funds, including the Valkyrie Bitcoin Strategy ETF, were also approved shortly after. Gensler has been calling for regulations in the cryptocurrency sector, but he has also noted that cryptocurrencies could be catalysts for change.
“To the extent that there are securities on these trading platforms, under our aws, they have to register with the Commission unless they qualify for an exemption,” Gensler stated.
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