NYSE Arca Files Paperwork for Bitwise Bitcoin ETF Approval

New details have surfaced about the bitcoin exchange-traded fund proposed by Bitwise and NYSE Arca.

Bitwise Asset Management announced its intention to launch the ETF earlier this month.

If approved, it would be the first bitcoin ETF to make it to market in the U.S. At the time, the company said NYSE Arca would file the 19b-4 rule change proposal in the near future.

NYSE Arca indeed filed the form the same day, but it does not appear to be listed on any SEC website, possibly due to the ongoing U.S. government shutdown.

When Bitwise first announced the ETF proposal, the company said it differed from previous such efforts because a regulated third-party custodian would store the bitcoins.

The filed proposal elaborates on the methodology, noting, for example, that these 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."

In previous ETF rejections, the SEC has highlighted concerns about market manipulation.

While NYSE Arca has filed the proposal, the clock has not yet started for its approval or rejection.

Attorney Jake Chervinsky, of law firm Kobre Kim, told CoinDesk that "The SEC's deadline for deciding an ETF proposal is triggered by publication in the Federal Register."

Previous bitcoin ETF proposals have been withdrawn or rejected, with Cboe most recently pulling its joint effort with VanEck and SolidX earlier this week.