Wilshire Phoenix files a registration statement for publicly traded bitcoin fund

After facing a rejection of its proposed exchange-traded product (ETP) in February, investment firm Wilshire Phoenix has filed a proposal for a publicly traded fund to be listed in the OTC market with the Securities Exchange Commission (SEC).

The firm filed an S-1 registration statement Bitcoin Commodity Trust, a product aimed at OTC investors, dated June 12.

Wilshire Phoenix previously sought approval for a bitcoin ETP that hedged bitcoin against U.S. Treasury bills. This approach was a response to the volatility concerns cited in other SEC denials of crypto ETPs, the firm said last year, at the time of filing. That attempt was denied in February of this year, when the SEC rejected the last remaining bitcoin ETP proposal. 

Now, Wilshire Phoenix seems to be taking another stab at approval for an OTC product. The filing states that this trust "will have no assets other than bitcoin," but may also hold U.S. dollars for short periods related to the buying and selling of bitcoin, redemptions and fees. 

Fidelity Digital will custody the Trust's bitcoin, while any dollars will be held by UMB Bank. 

The SEC has yet to approve a bitcoin ETP, with previous attempts from Bitwise and the Winklevoss brothers failing to garner approval.

After the Wilshire Phoenix rejection in March, SEC Commissioner Hester Peirce published a dissent that argued the SEC has applied an "inappropriate standard" in its consideration of a bitcoin ETP. At the time of rejection, the firm said it was considering "all possible routes" as it reviewed the rejection order.

Correction: The headline and the lede of this report have been corrected to reflect that Wilshire Phoenix's  new offering is for a publicly traded fund, not an ETP.