SEC Delays Decision on Wilshire Phoenix Bitcoin ETF Proposal

The U.S. Securities and Exchange Commission has begun proceedings to determine whether it should approve a proposed bitcoin exchange-traded fund.

According to a public filing published Tuesday, the SEC has begun evaluating the proposed rule change to allow NYSE Arca to list and trade shares of Wilshire Phoenix's Bitcoin and Treasury Investment Trust.

The companies first filed the rule change proposal in May. The ETF would give investors exposure to both bitcoin and U.S. Treasury bonds.

The SEC listed a number of questions for the general public, including what individuals think of the suggestion that the CME bitcoin reference rate is not susceptible to manipulation.

The SEC began taking comments on the proposal in June, and records show that only six individuals have submitted responses, both in support of and against allowing a bitcoin ETF. According to another public filing, Wilshire Phoenix executives, NYSE Arca employees and members of the Seward & Kissel law firm met with SEC staffers earlier in September.

The SEC faces a final deadline to approve or disapprove a bitcoin ETF proposed by Bitwise Asset Management in the middle of October.

The company has filed a number of reports with the SEC in an effort to convince the regulator that the bitcoin market is mature enough to support such a product.

SEC Chairman Jay Clayton recently said that, while the bitcoin market has made steps to mature, there is still "Work to be done" before a bitcoin ETF can be approved.

VanEck and SolidX, which also faced a mid-October deadline, pulled their joint bitcoin ETF proposal earlier this month.

Regarding the Wilshire Phoenix proposal, the SEC has a legally mandated 35 days from now to make a decision.