As reported by a Securities and Exchange Commission (SEC) filing dated 20 May, subsidiary headquarter of the New York Stock Exchange in Chicago, NYSE Arca, has submitted a proposal of rule amendment to the SEC of the United States stating a need for listing shares in BTC investment trust supported by T-bills.
The idea behind the bitcoin proposal
The objective of the proposed trust mentioned in the released filing is the close reflection of Bitcoin Treasury Index and the various expenses and liabilities handled by the trust. The Bitcoin Index is evaluated on a regular basis and is used to compare the monthly allocation between the assets of Bitcoin and T-bills. Hence, it represents two components, firstly the Bitcoin and secondly the cash or cash-like instruments and US treasuries.
The trust, stated NYSE Arca, will make investments exclusively in Bitcoin and T-bills, the latter of which are short term treasury securities of US with a maturity time lesser than a year.
Coinbase Custody Trust Company (LLC), the custodial arm of Coinbase, has been appointed by the Chicago based exchange for maintaining the custody of the Bitcoin assets of the trust stocked in cold storage. With the LLC as a potential custodian, the trust has received a benefit of $200 million as insurance for coverage of any hot or cold wallet theft.
A decision by the SEC is expected in a duration of 45 days, and the final stamp on any declaration will come by the end of 90 days since the proposal. The trust proposal is not to be confused by NYSE Arca’s proposal to list a Bitcoin ETF alongside the Bitwise Asset Management (cryptocurrency index fund provider). The decision regarding this separate application has been delayed, and the proposal is still under consideration by SEC.
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