New York asset management firm reveals plans for Bitcoin ETF

New York-based asset management firm Wilshire Phoenix has revealed plans to launch the United States Bitcoin and Treasury Investment Trust.

The Securities and Exchange Commission (SEC) has consistently rejected ETF proposals, citing price manipulation and fraudulent acts as the main reasons for rejection.

The VanEck and SolidX ETF proposals are to be decided upon by the SEC by the end of February. Having already delayed the decision twice, this will be the final deadline for the SEC, who won’t be able to postpone the ruling any further.

Wilshere Phoenix’s Bitcoin and Treasury Investment Trust would hold US dollars and short-dated treasuries in addition to Bitcoin. The aim would be to halt the volatility that is currently associated with cryptocurrencies.

The filing states: “While the Shares are not intended to, nor is their purpose to, replicate a direct investment in Bitcoin, they seek to provide investors with exposure to Bitcoin with substantially lower volatility than a direct investment in Bitcoin and without the uncertain and often complex requirements relating to acquiring and/or holding Bitcoin.”

Aside from price manipulation techniques like wash trading and spoofing, the SEC is also concerned about the possibility of Bitcoin theft. A number of exchanges have fallen victim to hacks over the past few years. Cryptopia lost $11 million after suffering a security breach earlier this week, but the largest hack rocked Japanese exchange CoinCheck, who lost $496 million before having to refund customers.