In the latest news focused on Bitcoin ETFs on our DC Forecasts crypto news site, we have a new joint project by Bitwise and NYSE Arca which are both initiating a new Bitcoin exchange-traded fund (BTF). Even though there have been rumours about this since last month, it is official now.
If this Bitcoin ETF gets approved, it would be the first ETF to make it to the market in the US. Currently, the company said that NYSE Arca would file the 19b-4 rule change proposal in the near future. In fact, NYSE Arca filed the form the same day but it does not appear to be listed on any SEC website, possibly due to the ongoing US government shutdown.
As a result of this, the document went unnoticed – even despite it was being posted on NYSE Arca’s own website. However, when Bitwise first announced it, it said that this project differs from previous such efforts because a regulated third-party custodian would store the Bitcoins.
“The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest,” the proposal says.
It also elaborates on the methodology, noting that the prices will be “weighted such that bitcoin prices from exchanges with a greater amount of the trading volume in the prior hour are weighted more heavily than bitcoin prices from exchanges with lesser amounts of volume.”